From a sudden accident to unexpected medical issues, your life may throw several curveballs your way, especially when you least expect them. These could be in the form of health emergencies, unexpected damages endured by high-value assets, etc. However, by investing in Insurance, you could face such situations and the financial and mental duress they cause. Let us understand What is Insurance? and explore its various types, along with its benefits.
Overview of Insurance
Insurance is also known as Insurance coverage or policy. It is a legal agreement between two parties, the insurer and the insured. This policy covers an individual’s monetary risks due to unpredictable contingencies. The insured refers to the policyholder. On the other hand, the insurer is the company providing the Insurance.
The insurer offers monetary coverage for the insured’s losses that they may bear under specific circumstances. However, the insured or policyholder pays a particular sum called the premium to the insurer or Insurance company against which the insurer offers the Insurance coverage. The payment of the premium decides the assured amount for Insurance coverage.
Type of Insurance Policies
Now that you know Insurance’s meaning, here are the different Insurance based on the coverage they offer:
- Life Insurance
Life Insurance offers monetary support to family members in the unfortunate event of the policyholder’s sudden death.
- Health Insurance
A Health Insurance Policy could help you access quality healthcare without worrying about draining your savings.
- Home Insurance
Home Insurance could safeguard your home and the belongings in it from damages caused by theft, fire, or natural disasters. In the case of an unfortunate event, such Insurance could offer financial assistance to rebuild or repair your home.
- Auto Insurance
Auto Insurance protects your automobile in case of loss or damage due to natural or human-made causes. Such Insurance could also keep you from financial and legal liabilities if your vehicle causes accidental loss or damage to a third-party property, individual, or vehicle.
Advantages of Insurance
The various benefits of Insurance include:
- Provides peace of mind
When you opt for Insurance, you can enjoy peace of mind. It could enable you to live without worrying about suddenly losing your assets.
- Ensures financial security for loved ones
Opting for a Life Insurance Policy could make sure your loved ones are monetarily secure in your absence.
- Offers financial security
Insurance could offer economic security in case of damage to your vehicle or home, accidents, and sudden illnesses.
- Offers access to quality healthcare
Individuals who opt for suitable Health Insurance can get the best treatment without having to dip into their savings. It also prevents them from compromising on costs.
- Enjoy tax benefits
When you invest in Insurance, you can enjoy tax benefits under various sections of the Income Tax Act.
Conclusion
Now that you know the meaning of Insurance and its various advantages, you can consider the different types of policies and opt for one that suits your needs.