Insurance is one of those subjects about which most of us have a confused view or no idea at all in some cases. This is not a desirable condition especially given that in certain situations insurance is legally an obligation. For example, insurance is mandatory when you purchase a motor vehicle.
Types of Insurance Available in India
Here’s an introduction to the main types of Insurance available in India and some of their important aspects.
There are three types of Insurance available in India:
This is a type of insurance that pays out a stipulated sum of money to the insured or their beneficiary following the happening of unexpected events in the life of the insured. Life Insurance helps you cover risks such as illness, premature death and permanent disability. Life Insurance can also be used for providing income after retirement.
There is a wide array of Life Insurance products offered by Insurance companies in India. Since Life Insurance policies are covered for several years, premiums need to be paid regularly.
General insurance is any insurance that is not life insurance. The term general insurance generally includes other forms of non life insurance such as fire, marine, travel, motor, accident and other miscellaneous non-life insurance
Unlike life insurance policies, most of the general insurance policies extend for one year and are renewed thereafter. In some cases the tenure of the general insurance policies is long.
Health insurance is one of the commonest types of insurance. Health Insurance is a contract with a health insurance company, for which you pay a monthly fee for a plan or policy in lieu of coverage of the medical expenses by the insurer.