Types of life insurance plans
Different types of insurance are available in India so that you can protect your loved ones from any financial crunch during an unexpected situation. There is a variety of insurances like life, general, health, and insurance to protect your assets and property. However, before buying any insurance policy, you should fully understand them so that you can choose the ones that are most suitable for you.
What is insurance?
It is a legal agreement between the insurance provider and an individual where the insurer offers to provide financial coverage against any emergencies of premium. There are different types of insurance available, and all of them fall into two categories:
- General insurance – General insurance is the category that covers all types of insurance that offer coverage against the losses incurred other than the death of the policyholder. General insurance covers different policies like health insurance, motor insurance, fire insurance, home insurance, and travel insurance.
- Health insurance – It is the type of insurance that covers medical expenses. Health insurance either pay for the medical expenses or reimburse the expenditure incurred due to medical condition. In India, there are different types of insurance plans available like – Individual health insurance, critical illness cover, family floater insurance, Group health insurance, Senior citizen health insurance, personal accident insurance, Maternity Health insurance, etc.
- Motor insurance – Motor insurance covers you in case your vehicle faces an accident. Different types of motor insurance are car insurance, commercial vehicle insurance, bike insurance, etc.
- Home insurance – Home insurance offers coverage to the structure and contents of your home during physical destruction caused due to natural calamity or homemade calamity like earthquake, robbery, etc.
- Fire insurance – Fire insurance covers the losses incurred due to fire breakout.
- Travel insurance – Travel insurance provides protection to your loved ones when you are traveling. The travel insurance ensures that you may travel in peace and covers the issues like loss of baggage, loss of passport, flight cancellation, etc.
- Life insurance – Life insurance plans cover against unfortunate events like disability or death of the policyholder. Other than financial protection, there are different types of life insurance policies that enable the policyholders to increase their savings through regular contributions in the debt and equity market.
Life insurance policy offers a large amount which your family members get if something bad happens to you. You can pick a period of life insurance, coverage amount, and payout option as you like. Different life insurance policy is – term life insurance, unit-linked insurance plans, group life insurance, etc.
Insurance policies offer you many tax benefits. The amount that you pay as a premium for insurance policies is tax-deductible.
Factors determining life insurance coverage
- Age of the policyholder
- Condition of your health
- Claim history
- Type of insurance policy
- Drinking and smoking habit
Insurance is the best way to offer financial protection to your loved ones in case something unfortunate happens to you. You should choose a plan that fits your needs and requirements to get the maximum benefit of the insurance policies.