Insurance

Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies and/or perils. There many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance. The core components that make up most insurance policies are the deductible, policy limit, and premium.

In insurance, the insurance policy is a contract between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.

Types Of Insurance:

• Health Insurance
• Life Insurance
• General Insurance

1. Life Insurance- Life insurance is a contract between an insurer and an insured. Under a life insurance plan, in exchange for a premium, the insurer promises to provide the policy nominee with a pre-decided sum of money upon the death of the policyholder (as per applicable terms and conditions).

2. Heath Insurance- Health insurance is very helpful for covering ones medical expenses. While choosing a health insurance policy, one should know aspects such as incurred claim ratio, top-up plans, pre and post hospitalisation expenses, critical illness plans, etc.

3. General Insurance- A General Insurance policy is a non - life Insurance product that includes a range of general insurance policies. Common form of general insurance in india are automobiles, mediclaim, homeowner's insurance, marine, travel and others. The policy offers payment to the policyholder based  on the loss incurred from a specific financial events. General insurance is insurance that is not categorized under life insurance.