Insurance: Policies and Benefits

Insurance: Policies and Benefits

Life goes through numerous of inevitable occurrences leading to financial loss. Life and property of
any individual is prone to many risks like disability, destruction etc. Insurance is a well- advised plan
to pass on such risks to an organization. It is a legal agreement that works as a commitment from
both sides. The two sides are the one who is getting insured and the one who is insuring. It is a
promise to assist the individual when he suffers from losses due to insured contingency.
Contingencies can of different ways like the death of the policy holder, damage, destruction of the
property. Contingencies are uncertain. The policy holder has to pay in return the premium for the
promise made by the insurance company.
Insurance Types

 General Insurance

This insurance policy includes the property insurance, liability insurance and also other forms of
insurance in it. Here property insurance comprise of Fire and Marine Insurance whereas liability
insurance includes motor, theft, fidelity and machine insurance.

Life Insurance

As the name reveals, this insurance is for protection against the loss due to death of the policy
holder. This policy is adopted to ensure the financial family dependency in case of untimely death. It
is highly recommended to the one who is the only earning member in his family.

Health Insurance

This insurance is related to medical health issues which covers medical costs for the expensive
treatments. There are different types of medical health insurance including different ailments and
diseases. You can choose either general insurance policy or referring to a particular disease. It
includes the cost of hospitalization and medication.

Car Insurance

Now that the number of car owners are increasing, the number of car insurance offered is also
increasing. It is highly important for every car owner. This protects the individual from any accidents
and also there are some policies which pays for the damage caused due to natural calamities. This
comprises of the third-party liabilities where you are liable to pay for the other vehicle owner.

Education Insurance

This education insurance is for ensuring the amount to be paid as the fees of your child when he
reaches the age of 18 and goes for higher education. Under this insurance, the parents remain the
owner of the policy but child is the life assured recipient of the funds. The money can be according
to your estimate of money for your child’s education.

Home Insurance

This type of insurance lets you recover from the loss that is caused to your home because of
incidents sch as fire, floods etc. It covers the natural calamities like lightning, earthquakes etc.
Benefits of Insurance

 It provides death benefits as insurance company pays the sum amount as stated in the
contract as well some applicable bonuses in case of untimely death.
 It offers maturity benefits and will work as a saving instrument. If the policy survives the
policy term and there have been no claims made, the premiums paid will be returned.
 It has several tax benefits. Under section 80C, the premium paid for the life insurance is
liable to maximum tax deduction for up to 1.5 lakhs rupees. Moreover, under Section 10D,
the pay outs from the insurance company are completely tax free.