What is insurance in simple words:- In simple words, insurance is a way by which the risk of any kind of loss is taken by the other party. When you get insurance, you do not have to worry about the loss because the insurers are always ready to compensate for the loss. But to get insurance, you have to pay some fees(premium), by which you can avoid your future losses. We can also define insurance in such a way that insurance is a contract in which the insurer indemnifies the insured in case of loss.
Benefits of Insurance
Benefits of insurance: – We can also call insurance as cooperation, when we are victims of any unforeseen incident in the future, we reduce its effect through insurance. Let me tell you some of its benefits;-
- Through insurance, we can recover from economic recession in the future.
- Loss of property can be compensated in the incident of an accident through insurance
- Legal troubles can also be avoided through insurance
There are mainly 2 types of insurance, one is life insurance and the other is general insurance.
- Life Insurance: – Life insurance is a contract between the insurance company and the insured, in which the company is committed to giving its pre-approved amount for a specified period of time in the incident of an accident or the death of the insured. After the death of the insured, this money helps his family to overcome the financial conditions. The names of some of the best life insurance companies are as follows: –
- Bajaj Allianz Life Insurance
- Life Insurance Corporation of India
- ICICI Prudential Life Insurance
- HDFC Standard Life Insurance
General Insurance
2. General Insurance: – Under general insurance, most non-living things are insured. Like:- Vehicle Insurance, Insurance of houses, animals, crops, etc. However, health insurance also comes under this.
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Vehicle Insurance:- Driving without vehicle insurance in India comes under the category of crime. The traffic police can also fine you for this. There are many benefits of getting vehicle insurance, such as if your vehicle is stolen or has become a victim of an accident, then in this situation, the insurance company gives compensation.
Health Insurance:- In today’s time, different types of diseases are knocking. In such a situation, when you are ill, then there is a lot of expenditure on the treatment of diseases. Through health insurance, you can prevent unexpected expenses in the future. When you get health insurance, the insurance company bears the full cost of your treatment for future diseases.
Travel Insurance: – When travel insurance companies take responsibility for any kind of loss caused during the journey, then it is called travel insurance. For example, if you are a victim of an accident during travel or your luggage gets lost, then travel insurance companies help you under the insurance policy. Since the conditions of most travel insurance companies may be different and travel insurance is valid only from the beginning to the end of the journey.
Crop Insurance:- Most farmers avoid unforeseen situations in their future by taking Crop Insurance. Under Crop Insurance, companies give compensation in case of crop damage, in case of fire, or crop damage due to flood.
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How to Take Insurance
How to Take Insurance:- Friends, there are many ways to take insurance, it depends on what kind of insurance you want to take, and after that, you can choose the company. If you want, you can get insurance by talking to the agent of the company directly, or now you can easily get insurance online. And in case of loss, you can demand compensation from the insurance company.
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