What is Insurance Policy? Insurance Types in India: Unplanned costs are the bitter truth in life. Even when you think you are financially at a cost to yourself, a sudden or unexpected can greatly hinder this protection. Depending on the extent of the emergency, such instances could make you outstanding.

Although you cannot plan for contingencies arising from these events, an insurance policy gives a glimmer of help to reduce financial obligations from unforeseen events. There are different insurance policies, each aimed at protecting some aspect of your health or property.

What is Insurance Policy? Insurance Types in India:

  • Life Insurance
  • Travel Insurance
  • Property insurance
  • Motor insurance
  • Health insurance
  • Bite-size insurance
  • Mobile Insurance
  • Cycle insurance

Just knowing the different insurance policies that are there doesn't help. Instead, you should know how each of these plans works. Without knowing enough about each of them, you may be unable to protect your finances and the financial well-being of your family members. Read more to know what you need to know about different insurance policies.

1. Life Insurance:

Life insurance refers to the policy or protection with which the policyholder can ensure financial independence for the family members after death. Let's say you are a family member with your income, supporting your partner and your children.

In such a situation, your death will destroy the entire family financially. A life insurance policy ensures that it does not happen by providing financial support to your family if you die.

Types of Life Insurance Policies:

When it comes to life insurance, there are specifically seven different types of insurance policies. Here it is:

Term plan - Death benefits from the time plan are available only for a fixed period, for example, 40 years from the date of policy purchase.
Sntainment plan – The entry plan is a life insurance policy where part of your premiums goes towards death benefit. At the same time, the rest is invested by the provider to the insurance company. There are many types of assistance from maturity benefits, death benefits, and periodic bonus settlement policies.

Similar to an insurance plan related to a unit or ULIP endowment plan, part of your insurance premium goes towards mutual fund investments, while the rest of the deaths go towards its benefits.
Whole Life Insurance – As the name suggests, such a policy provides life insurance for an individual's lifetime rather than for a fixed period. Some insurance companies may limit the whole life insurance term to 100 years.

Children's Plan - Investment Investment Policy provides financial assistance to your children throughout their life. Death benefits are available as a one-time payment after the parents' death.
Money-back – Such policies pay a fixed percentage of the plan sum assured at regular intervals. This is known as the benefits of existence.

Pension Plan - Also known as a pension plan, this policy combines investment and insurance. A portion of the premium goes towards creating a pension fund for the policyholders. It is available as a lump sum or monthly payment for post-retirement policyholders.

2. Health Insurance:

Health insurance refers to the type of general insurance which provides financial assistance to policyholders in hospitals for treatment. In addition, some plans also cover maintenance costs placed on the home before or after the holidays.

With the rising medical inflation in India, buying health insurance has become necessary. However, before you continue shopping, consider the different health insurance plans available in India.

Types of Health Insurance Policy:

There are eight main types of health insurance policies available in India. They:

Individual Health Insurance – This health care plan provides medical protection only to the policyholders.
Family Floater Insurance – This policy allows you to get health insurance for your entire family without buying a separate package for each member. Generally, their husbands, wives, and both of their children are allowed health protection under one of the family's policies.

Critical Illness Closure – This special health plan provides policyholders comprehensive financial assistance to diagnose specific chronic diseases. Unlike normal health insurance policies, this plan makes a one-time payment after such a diagnosis.
Senior Health Insurance – As the name suggests, this policy is exclusively for a complete person aged 60 years and above.

Group Health Insurance – Such policies are usually offered to the employees of an organization or company. They are designed so that old beneficiaries can be removed, and new beneficiaries can be added as per the retention capacity of the company's employees.
Maternity Health Insurance – This policy covers medical costs during the prenatal, postpartum, and shipping phases. This includes mothers and newborns.

Personal Accident Insurance – This health insurance policy covers financial liability only due to accidents, disability, or financial liabilities that result in death.
Preventive Health Care Plans: The policy covers maintenance costs associated with preventing illness or serious conditions.

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