Insurance policies broadly classified into three types. They are:
1. General insurance policies: General insurance provides the protection for an individual to secure their assets, property, home, vehicle against loss.
General insurance is the insurance agreement between an individual and insurance company, in which the individual pays certain amount of money to the company in exchange of getting the benefit for the future loss.
General insurances are classified into several types, depending on what is insured:
Life insurance policies provide the protection for the human life. It helps the individual to provide security to his/her family or to provide financial support to his/ her family members after his/her death.
Life insurance is an agreement between the individual and insurance company, in which the individual pays premiums to the company in exchange receive the benefits after individuals’ death for family.
Life insurance policies are classified based on some parameters like benefits covered, years, premium amount, and other regulations. Based on the above parameters life insurances are mainly divide into two categories. They are as follows.
i. Term life insurances
ii. Permanent life insurances
Term life insurance, as the name suggests, it is the life insurance for a particular period of time. It is a type of insurance which secures the individual life for a period of time. In this type of insurance policies the individual pays premium to the company for secure his/her life for a certain period. If individual dies within this period, the insurance company pays some amount of money to the nominee or the beneficiary of the policy.
In this type of insurances the premium could remain the same. Premiums are more easily afforded because the insurance company expects that the death of the policy holder is not likely to be occurred over the term. If any uncertain event is not occurred over the term then the policy holder will not get any benefits after the policy maturity. This is the drawback of this policy, so that economically and highly recommended for the youth and employees is to take the permanent life insurance policies
The term life insurance are classified into three types they are as follows.
Permanent life insurance policies are expensive in nature. They give benefits or protect policy holder for a long time. This type of policy cannot be stopped on any way as long as you pay the premiums regularly. Sometimes these types of policies give excess amount of money to the beneficiary after your death. You pay for the premium for a long period, so that you may have an option to raise loan on your funds.
There are various types, they are.
Health insurance insures your health from all possible losses on account of ill health. Health insurance provides benefits for all surgeries and operations cost, medical expenses for the insurance holder and a great saving for tax. For example: you need a emergency surgery that coast worth of $ 500, it will be a big amount to set on the time. If you may have health insurance policy then the insurance firm pays total cost of surgery and also pays for medical expenses, lab expenses.
These are the various insurance policies, one can avail as per the need.
- General insurance policies
- Life insurance policies
- Health insurance policies
General insurance is the insurance agreement between an individual and insurance company, in which the individual pays certain amount of money to the company in exchange of getting the benefit for the future loss.
General insurances are classified into several types, depending on what is insured:
- Home insurance or building insurance: This insurance insures your home against losses from natural disasters and fire accidents
- Landlords insurance: This is for landlords against losses resulting from earthquake and tsunami. It similar to home insurance.
- Flood insurance: This insurance insures your properties against loses from floods. This helps people, living in most flood occur area.
- Auto insurance: Auto insurance, insures your automobiles such as cars against losses. Such as car damage in accidents. It also insurance provides cost of damage, if car get damage due to other car owner. This provides death benefits, if a person die in accident and also provides medical expenses for injured person.
- Property insurance: Property insurances protects your property against ch losses. Such as loss from fire, earthquake, floods.
Life insurance policies provide the protection for the human life. It helps the individual to provide security to his/her family or to provide financial support to his/ her family members after his/her death.
Life insurance is an agreement between the individual and insurance company, in which the individual pays premiums to the company in exchange receive the benefits after individuals’ death for family.
Life insurance policies are classified based on some parameters like benefits covered, years, premium amount, and other regulations. Based on the above parameters life insurances are mainly divide into two categories. They are as follows.
i. Term life insurances
ii. Permanent life insurances
i. Term life insurances policies:
Term life insurance, as the name suggests, it is the life insurance for a particular period of time. It is a type of insurance which secures the individual life for a period of time. In this type of insurance policies the individual pays premium to the company for secure his/her life for a certain period. If individual dies within this period, the insurance company pays some amount of money to the nominee or the beneficiary of the policy.
In this type of insurances the premium could remain the same. Premiums are more easily afforded because the insurance company expects that the death of the policy holder is not likely to be occurred over the term. If any uncertain event is not occurred over the term then the policy holder will not get any benefits after the policy maturity. This is the drawback of this policy, so that economically and highly recommended for the youth and employees is to take the permanent life insurance policies
The term life insurance are classified into three types they are as follows.
- Level term life insurance: In this type of policy the premiums remains same and the death benefit also remains same. This type of insurances requires you to select particular period and pays the premiums for that period, after the period matures you will not get any benefits.
- Group term life insurance: These type of insurances are taken by employers for their employees. The employer pays the premium for the insurance company. The employer may bear the premium amount or else they can deduct from the individual employees salary. This type of insurance is offered for the employees as a part of their welfare benefit. It is a term life insurance policy that covers the group of people( employees) , pays the death benefits to his or her beneficiaries.
Permanent life insurance policies are expensive in nature. They give benefits or protect policy holder for a long time. This type of policy cannot be stopped on any way as long as you pay the premiums regularly. Sometimes these types of policies give excess amount of money to the beneficiary after your death. You pay for the premium for a long period, so that you may have an option to raise loan on your funds.
There are various types, they are.
- Whole life insurance: As the name implies, it is the policy for an individual over life time. This type of policies helps the individual to make substantial investment on his/her policy.
- Universal life insurance: This type of life insurance policy requires you to pay the premiums for a fixed period. The premium amount will be constant.
- Variable universal life insurance: In this, the insurance company invests your premiums in stock market. This policy is very risky in nature as the returns depend on your stock performance. If the stock perform well then returns will be high.
Health insurance insures your health from all possible losses on account of ill health. Health insurance provides benefits for all surgeries and operations cost, medical expenses for the insurance holder and a great saving for tax. For example: you need a emergency surgery that coast worth of $ 500, it will be a big amount to set on the time. If you may have health insurance policy then the insurance firm pays total cost of surgery and also pays for medical expenses, lab expenses.
These are the various insurance policies, one can avail as per the need.
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