In technical terms, it is a form of risk management in which the insured entity transfers the cost of a potential loss to another entity in exchange for a small monetary compensation. This compensation is called premium. In simple words, it is like paying a lump sum amount to an entity to protect itself from possible future losses. Thus, when there is a case of some misfortune, the insurer assists you in dealing with the situation.
I hope you understand what insurance is, so let’s see the types of insurance.
Types of insurance
There are mainly two types of insurance
1.Life insurance:- Life insurance is one of the traditional forms of insurance, designed to protect you and your loved ones from an accidental calamity or calamity. It was initially designed to protect the income of the families. But since then, it has evolved from a mere security measure to an alternative to wealth protection or tax planning. The need for life insurance is calculated on various factors like number of dependents on an individual, current savings, financial goals etc.
Term life insurance which is also known as pure life insurance guarantees payment of a stated death benefit to the insured’s beneficiaries if the insured person dies during a specified term.
Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
2.General insurance:- Any type of coverage other than life falls under this category. There are many different types of insurance that cover almost every aspect of your life according to your needs!
- Health insurance:- It covers your medical and surgical expenses that may arise during the course of your life. Generally, health insurance provides cashless facility in empaneled hospitals.
- Home insurance:- It covers the contents of the house and/or inside, depending on the scope of the policy. It protects the house from natural and man-made calamities. Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s house and assets in the home.
- Car insurance/vehicle insurance:- It covers losses and liabilities associated with a car/vehicle (two wheeler or four wheeler) against various scenarios. It provides protection against damage to the vehicle and covers for any third party liability as stated by law against the owner of the car. car insurance and auto insurance both are fall under the vehicle insurance .
- Travel insurance:- It protects you from emergencies or damages that may happen during your travels. It covers you against unseen medical emergencies, theft or loss of belongings etc.
- Commercial insurance:- It provides solutions for all sectors of industry such as construction, automotive, food, power, technology etc. Risk protection needs may vary from person to person but the basic workings of an insurance policy remain more or less the same.
Need of insurance
Now you have familiar with what insurance is and it’s types so now we discuss about need of insurance.
This question is on everyone’s mind. Do I really need protection? Life is full of surprises; Some good, some bad. You need to be prepared for the worst that can happen to you. It helps you to have a sense of security and peace. There may be many reasons where you may need assistance, such as a serious illness, natural disaster, unexpected death of a loved one, etc. Being adequately insured in such situations helps your financial position significantly. Thus, one must opt for the right type of security as per their needs.
And I have shared the types of insurance above so if you also think that you need insurance policy than you can choose one according to your needs.
There are some insurance quotes are given below which you can use for your insurance company to attract people to do insurance from your company.
“Would you agree that the only person who can take care of the older person you will someday be – is the younger person you are now?”
“When you’re young, fit, and full of drive, it’s easy to think that “it will never happen to me.” But this is the myth of invincibility. – DBS Singapore”
“Savings alone are not enough to achieve financial freedom; insuring your assets with general insurance policies is equally important. – Iffco-Tokio”
“As an athlete, I understood the value of my health insurance. I knew that in my profession, injuries were common and could happen at any time. – Magic Johnson”
“Even families with health insurance are quite vulnerable to a severe economic reversal if someone gets sick. – Elizebeth Warren”
“Without health insurance, getting sick or injured could mean going bankrupt, going without needed care, or even dying needlessly. – Jan Schakowsky”
“Getting insurance is YOUR responsibility to your family and loved ones. You may hate it but it is your responsibility. – Jeremiah Say”
What is insurance policy?
So these are all about insurance, types of insurance like life insurance, term life insurance, home insurance, homeowner insurance, car insurance, auto insurance and insurance quotes etc..
I hope you understand about insurance and if you have any query related to insurance than please comment below.