Weekly Insurance Awareness Capsule 2
In this article you will get, information about different topics of Insurance Awareness in the form of Weekly Insurance Awareness Capsule.
Insurance Awareness section has become an essential section of majority of Insurance Sector examination conducted in India. Essentially it checks how much is the candidate keeping up with the knowledge of insurance and financial sector,with special reference to the insurance industry
In this article, we are providing the basic info about different types of insurances in India. Basically, there are two types of Insurance: Life Insurance and General Insurance
- Life insurance as the name suggests is insuring your life.
- Actually, it is not insurance for yourself but for your family members.
- With the life insurance policy, after the death of the policy holder, the sum assured is given to the beneficiary so that the persons family members lead a near-normal life as far as the household finances go.
- It’s basically a long term investment and requires periodic payments, either monthly or quarterly or annually.
Life Insurance policy Types:
These are period specific plans i.e. the life is insured in only that particular period. After that the policy terminates. It does not offer any other profits. The beneficiary gets the sum assured only if the person dies in the period specified in the policy. It has comparatively lower premiums.
They are a bit different from Term Plans in the way that they also have maturity benefits. These plans pay you out in both case – death and survival. But they have higher premiums as compared to Term Plans.
Whole Life Policy:
As per the name, this policy is for the whole life of the person (lifetime validity). The premiums are paid until the death. The policy expires only on the event of death of policyholder.
Money Back Policy:
This is a policy where regular premiums are paid. After certain duration, a portion of sum assured is paid out at regular intervals. Also, in the cases where the policyholder survives, he gets the balance sum assured. And in case of death, the beneficiary gets the full sum assured.
- Any Insurance other than life insurance is called as General Insurance. They are also called as Non Life Insurances
- Some examples are property insurance, automobiles insurance, health insurance, theft insurance, etc.
- General insurance aims to protect the economic value of your assets.
General Insurance policy Types:
With this type of insurance you can get your house insured. The policy will cover the risks in case of the natural calamities like earthquake, floods, fire, etc. It also insures other valuable properties like Office, Factory etc.
This insurance covers all the risks which may happen while travelling abroad. You can get it when you are on a family or business trip. This insurance insures you against any mishap like loss of your luggage, belongings etc.
As per the Indian Motor Vehicle Act, every motor vehicle be it car, bike, truck or scooter running on the road has to be insured. This insurance insures your vehicles and thus covers the risk like damage to vehicle in accident, loss of vehicle, etc.
As the name suggests, The Health Insurance covers all the medical expenses in case of any ailments ranging from paying your medicine bills to all the hospitalization charges. One more point to remember is that , out of all the forms of general insurance, only the Health Insurance comes with tax benefits (as per section 80-D of the Income Tax Act 1961, any premium paid for a health insurance plan will qualify for tax deduction from your total income)
Friends this is it regarding Weekly Insurance Awareness capsule. You can also download this post in pdf from below. We will update Weekly Insurance Awareness Capsule like this every week.If you have any suggestion or query, kindly post it in the comments section.