[2022] What Is Insurance? And It’s benefits

Do you know what is insurance (Information about insurance)? Why we all need to insure our life or our property, there are many types of insurance or insurance etc. If you have some doubts about insurance or insurance in your mind, then you must read this post till the end because today we will know about all the aspects of insurance.

As we all know that both life and property of any human being is surrounded by death, incapacity and ruin. No one knows what is going to happen to them the very next moment. At the same time, such accidents can cause you a lot of financial losses. At the same time, insurance is a very good way to protect yourself from such a situation, by which these risks can be removed to a great extent.

Wherein the full responsibility of these risks from these insurance schemes is handled by the insurance company. Insurance protects us from many risks such as fire in the house, car accident, theft in the house. At the same time, there are some types of insurance which also provide money for the treatment of your disease, while on your death, this insurance amount is also offered to your family members.

On the other hand, if you want to know more about what is insurance, then you will have to read this article completely about what is insurance. By which you will get complete information about it. Then without delay let’s start.

What Is Insurance?

Insurance is a kind of legal agreement between two parties, the first being the insurance company (the one who gives the insurance or the insurer) and the other is the individual (the one who takes the insurance or the insured).

In this, the insurance company promises that if some unforeseen or accidental event happens, then the company is going to take responsibility for everything. At the same time, all the things that may have been damaged will be completed by the company itself.

These types of events are called contingencies because there is no exact time for these events as to when they are going to happen. In this, the insurance company has to compensate for all the losses as promised earlier.

Types of Insurance

There are different types of insurance such as Life Insurance, Home Insurance, Health Insurance, Vehicle Insurance, Travel Insurance, Crop & Farmer Insurance and Mobile Insurance etc. So we are Types of Insurance ie how many types of insurance are there? And learn about the benefits of insurance.

1. Life Insurance

Life insurance means life insurance is a type of agreement between the insurance company and the person taking the insurance, in which the insurance company guarantees that if the policy holder dies in the future, then Nominee from his family. According to the terms and conditions, a certain amount will be paid by the insurance company so that they do not face any financial crisis, but this amount willI be given as much as that person had insured.

This life insurance depends on when the person died, how and for what reason. There is no trust in anyone’s life, so people leave life insurance policies especially for their families. Most of the people adopt this life insurance policy so that after their departure, their family members get some help of money.

Types of Life Insurance

  • Term Insurance
  • Endowment Plan
  • ULIP Unit Linked Insurance Plans
  • Money Back Policy

2. Home Insurance

If you build a house with your hard earned money, then you should also do home insurance or home insurance. In home insurance, a policy is made according to the structure of the house, the goods of the house, if there is a sudden accident like earthquake, flood, or damage to the house items, all of it will be compensated by the insurance company . Is.

Today many people take out the insurance of their house, through which they can keep their house safe, so it has become very important and necessary to do home insurance.

3. Medical & Health Insurance

Health %3D Insurance Health Insurance or Health Insurance This is a type of insurance service in which a person can plan his medical and surgical expenses and there are different types of plans for these by many financial institutions.

Everyone should get Medical & Health Insurance because this facility is given to the person taking the insurance for all the treatment of his health. But all this facility is provided by the same insurance company where the insured person has taken their policy and provides for the cost of medicines, operation expenses and hospital expenses etc.

Nowadays, no one knows when what will happen to someone, when someone’s health will deteriorate, in such a situation there is a great need for a health insurance policy and this policy is very useful at this time.

4. Personal Accident Insurance

In Accident Insurance Scheme or Accidental Policy also, by depositing a fixed price, the policyholder is given some money or amount if he is admitted to the hospital according to the terms and conditions of the policy in case of accident or any disability.

One of the biggest advantages in Accidental Policy is that you do not have to bear any kind of expenses in case of any accident with you. The insurance policy company in which you have got your insurance done, the same company bears all your expenses. That’s why it is very important to have this insurance. Different insurance policies have different terms and conditions, they should be insured or insured only after reading them.

5. Vehicle Insurance

If you have a car, bike, motor, auto or any vehicle, then it is very important to get it insured because it protects us from financial loss in case of any kind of accident, so getting vehicle insurance is very important.

There are two types of vehicle insurance in India:

  1. Third party insurance
  2. Full party insurance

1. Third party insurance: In this type of insurance, if the vehicle that you have causes an accident and at the same time the driver or vehicle of the other vehicle is damaged, then the insurance company compensates them.

But the insurance company does not give any kind of claim in case of damage to you or your vehicle, hence it is also called third party insurance. This insurance is mandatory as per the Motor Act.

2. Full party insurance : In this type of insurance, if there is an accident, the loss of everyone such as the car, driver, and people sitting in the vehicle and the loss of other vehicles such as for small and big broken feet and the rest of the loss, the insurance company gives.. Full party insurance is also called standard motor insurance.

6. Crop & Farmer insurance

Friends, the weather is not trusted, sometimes rain comes and sometimes it never comes, due to this there is a lot of damage to your agriculture, so you should insure your crop every year.

In this insurance, your crop gets a kind of protection, if there is some damage to your crop, then the insurance company compensates all your losses, so if you are a farmer, then you must do Crop Insurance and Farmer Insurance. Needed.

7. Travel Insurance

If you are traveling alone or with your family, then it is very important to have your travel insurance or travel insurance.

If you ever have to travel, then you should plan everything before leaving the house, so that you do not have to go through the troubles during the journey. If you cannot manage anything by yourself, then you can adopt Travel Insurance at such a time.

And one thing is that, if there is an accident during the journey, or there is a delay in the journey such as flight delay, flight cancellation, then Travel Insurance bears the full cost of your loss, so Travel Insurance or Travel Insurance It is very important to be

8. Mobile Insurance

Today everyone has a mobile phone, so you must have also heard that it is necessary to insure mobile too. Today everyone has more than one mobile phone and if there is some minor damage to your mobile phone, then the insurance company gives you all the compensation for it, so it is very necessary to do mobile insurance.

Principles of Insurance

When you buy an insurance from an insurance company, then the insurer (which is the company) and the insured (which is you) receives a legal contract of insurance, this is called an insurance policy.

This insurance policy contains all the details about which you should know, such as all the conditions and circumstances under which the insurance company is going to pay you your insurance amount, if there is any loss then, if you do not then then selected by you. Gone nominee.

Insurance is a very good way to protect yourself and your family from any financial loss. It has often been found that the bigger the insurance cover, the smaller is the premium. This is probably because very few people claim this type of insurance but they have to pay all the premium for it. That’s why the company has more profit in it.

Any person or company can apply to get insurance, but the insurance company decides what type of insurance is to be provided. For this, the insurance company evaluates your application thoroughly before giving you any decision.
Whereas most of the time the comapny refuses to provide insurance to high-risk applicants.

The issue with insurance is that you have to first choose what you need insurance on.
After that the insurer calculates his risk, and only after checking everything tells you how much premium you will have to pay.

Select Policy

An insurance policy is such a document in which you have written all the details about it. Like for which things you get insurance and for what not.

Pay Premium

Premium is called the amount that you pay every month or once in a year according to your policy. Its amount depends on what things this insurance is covering.

Claiming

If something untoward happens within the insurance period, then you or your nominee can claim your insurance. In this you have to give full details of your accident which the insurance company checks and if your claim is correct from all the places then you get your claimed amount as was decided earlier.

How to Claim Insurance?

Let us now know how you can claim your insurance amount.

  • For this you have to first make your claim against your insurance policy.
  • Now you have to provide all the details regarding your loss which you have suffered. It differs from insurance to insurance.
  • Then you have to submit all the bills / proof of your damage, loss, hospitalisation, etc.
  • Now your work ends here, now the insurance company will verify your claim.
  • Whereas if your claim is proved to be true then you get your claimed amount, according to your loss.

1. Act of insurance

Insurance has evolved on the basis of a process that protects the loss and uncertainty of the people. It is described as a social device to reduce the loss of life and property.

Insurance promotes general economic growth in the society so that the process of society can run with stability in the right way. Insurance industries develop such financial institutions which help in reducing the uncertainties and risks in future.

2. Provide Safety and Security

Insurance provide financial support and with it also reduce the uncertainties in business and human life. It provides safety and security against a particular event.

Since there is always a fear of sudden loss, in such a situation, insurance has a big hand in reducing it.

3. Generates financial resources

Insurance generates funds, by collecting premium. These funds are invested in government securities and stocks. These funds are used in the industrial development of the country so that the economic development of the country can take place. At the same time, employment opportunities are also encouraged.

4. Life Insurance Promotes Savings

Insurance not only protects you from risks and uncertainties, but it also provides an investment channel. Life insurance enables us to make systematic savings on the basis of paying regular premium.

Wherein life insurance also provides an investment mode.

This creates the habit of saving money in us. The lumpsum amount of the premium, we get at the time of maturity according to the matured amount in the end. That’s why it encourages to make insurance savings.

Benefits of taking insurance

By the way, insurance provides a lot of benefits to any individual, family businessman, businesses as well as society. At the same time, let us know about some of its important advantages.

  • Insurance provides economic and financial protection, to the insured person or thing that has been insured, that too in a nominal amount called premium. At the same time, it provides financial protection to the nominee if there is a pre-matured death of the insured person. Along with this, it also covers many losses such as loss of property due to theft, due to some fire or any natural calamity.
  • At the same time, it reduces the risks of people who otherwise could have caused big losses for them. Although it is not possible to completely remove the risks and uncertainties, but it can be reduced to a great extent. That’s why insurance companies charge you a small premium to earn your risks.
  • It helps in maintaining the standard of living of the people if there is such an unexpected loss. At the same time, it also protects us from unfortunate financial crisis.
  • Since we have to pay some premium in insurance, for which it encourages us to save. Due to which saving becomes a habit of ours.
  • It protects us from being dependent on someone else. So that you can live your life in your own way and it empowers us. This life insurance policy provides us full financial support if someone dies.
  • It also helps in taking loan. If you have any policy going on then you can take loan from insurance company on the basis of that policy. In which this policy is kept according to the collateral.
  • It provides new employment opportunities for all. In this modern era, hundreds of entrepreneurs and thousands of employees are engaged in this line.
  • Promotes Foreign Trade. Insurance companies have a big hand in promoting the international trade of a country. Because by insuring the risks of these businesses are greatly reduced, so that they can do the desired export activities of their businesses.
  • Insurance companies have a big hand in operating the business smoothly. Because it divides the loss of properties. At the same time, the motivation of the employees is increased by getting the employees done through the insurance company.
  • It helps in reducing inflation. To reduce inflation, the amount of money has to be reduced. At the same time, taking money from insurance companies on the basis of premium helps in reducing inflation.
  • These premium amounts are spent in many development areas such as trade and industry. Due to which the economic growth of the country takes place.

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