What is insurance, how much is it?

On taking health insurance, the insurance company covers the cost of treatment in case of illness.
What is insurance
Insurance is an effective weapon to deal with the possibility of any loss in the future. We don’t know what will happen tomorrow, so we try to cover potential future losses through insurance policies.

Insurance means protection from risk. If an insurance company insures a person, then the insurance company will compensate the financial loss caused to that person.

Similarly, if the insurance company has insured a car, house or smartphone, then in case of breakage, breakage, loss or damage of that thing, the insurance company gives compensation to its owner according to the pre-determined conditions.

Insurance is actually a contract between the insurance company and the insured. Under this contract, the insurance company charges a certain amount of money (premium) from the insured person and indemnifies the insured person or the company in case of any loss as per the terms of the policy.

How much is insurance?
Generally, there are two types of insurance:
Life Insurance
General Insurance

In life insurance, the life of a person is insured.
Life Insurance: Life Insurance means that on the death of the person who bought the insurance policy, his dependents get compensation from the insurance company.

If the head of the family dies untimely then it becomes difficult to run the household expenses. It is necessary to take a life insurance policy to protect the wife/children/parents etc. of the head of the family from the financial crisis. The first thing in financial planning is that a person is advised to buy a life insurance policy.

General insurance includes vehicle, home, animal, crop, health insurance etc.
Home Insurance: If you insure your home with any general insurance company then it covers your home. After buying an insurance policy, if your house suffers any kind of damage, then the insurance company pays for it.

Coverage against any kind of damage to your home is included in this insurance policy. Home damage due to natural calamities includes damage caused by fire, earthquake, lightning, flood etc. Man-made calamities include house theft, fire, riots etc.

Motor Insurance: Ensuring any vehicle running on the road in India is very important according to the law. If you drive your vehicle on the road without insurance, you can be fined by the traffic police. The insurance company pays compensation for any damage to the vehicle as per the motor or vehicle insurance policy. If your vehicle is stolen or there is an accident with it, then a vehicle insurance policy can help you a lot.

A vehicle insurance policy is most beneficial to you when someone is injured or killed by your vehicle. It is covered under Third Party Insurance. If you also have any two-wheeler/three-wheeler or car then it must be insured.

Health Insurance: Nowadays the cost of treatment is increasing very fast. On taking health insurance, the insurance company covers the cost of treatment in case of illness. Under the health insurance policy, the insurance company pays the amount spent on treatment in case of any kind of illness. The limit of expenses for an illness depends on your health insurance policy.

Travel Insurance: Travel insurance protects against losses during a trip. If a person goes abroad for work or sightseeing and gets injured or loses belongings, the insurance company compensates him. A travel insurance policy is valid from the start of your trip to the end of your trip. Different insurance companies may have different conditions for travel insurance policies.

Crop Insurance: According to the existing rules, every farmer taking an agricultural loan is required to purchase crop insurance. Under the crop insurance policy, the insurance company compensates the farmer for any kind of damage to the crop. Under a crop insurance policy, compensation is paid by the insurance company in case of crop damage due to fire, flood or any disease.

Farmers are not very enthusiastic about crop insurance as of now because the conditions of the crop insurance policy are very strict and cost-wise compensation is not available. In fact, insurance companies survey all the fields around that farm to provide compensation in case of crop damage and compensation is given only when most of the farmers’ crops are damaged.

Business Liability Insurance:
Liability insurance is actually meant to cover the loss caused to a customer by a company’s operations or a product. In such a situation, the fine imposed on the company and the entire cost of legal proceedings have to be borne by the liability insurance company.

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