Everything You need to Know About Insurance, Types, terms and conditions

Here we will briefly discuss very common term what is insurance and its Types.

Generally,insurance is a backup plan for financial losses of an individual.

Insurance is the best way to handle losses not individually but along with the help of insurance company if such situations came up in our lives.

Here in this article ,we cover all the topics that are necessary for everyone to know what is Insurance and its Types.

What is insurance?

It is a legal agreement between the two parties ,the insurer and the insured .

In this agreement ,the company is responsible for making good changes to the insured at some losses .

It is called contingency because of th unsureity of event going to happen.

It can be death of policyholder or some property damage.

In return,the insured has to pay a yearly premium in return of the promise made by insurer.

How does an insurance work?

The insurer and the insured get a legal document confirmed by both of them which contains the terms and conditions on which the insurance company will pay out in case of some loss.

Generally ,the premium for a big insurance cover is less in terms of money paid.

Company do so at a lower cost because very few insured people end up in claiming their insurance.

Procedure to get insurance from an company?

Generally ,it’s the decision of the company to give insurance .

More often,company does not give insurance to the people having high risk .

What are the types of insurance available in India?

1. Life Insurance.

You buy life insurance in order to make sure that your dependents are financially stable even after your demise.

If the policyholder demise during the period of insurance ,then the company compensate the family according to the agreement.

2. Health insurance.

Health insurance is generally bought to cover up the expensive bills of treatments and hospitalisation.

3. Car insurance.

The car insurance is must for every car owner.These policies compensate you for accidents and some policies are even for natural calamities.

4.Home Insurance.

Home insurance can help us to cover up losses due to accidents like fire , earthquake and other natural phenomenons.

What are the tax benefits on indurance?

Life insurance premium of upto INR1.5 lakhs can be claimed as a tax saving
deduction under article 80C.

Medical Insurance of upto 50,000 can be claimed as a tax saving deduction under section 80D.

NOTE-These claims have been made at the time of filling e-return.

Written By – Deepak Kumar (Senior Analyst)

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