Insurance stands as a legally binding agreement between an insurer (insurance company) and an insured individual. This pact extends financial protection to the insured under predefined circumstances, serving as a shield against potential losses.
Under an insurance policy, the insured commits to regular premium payments to the insurer. In return, the insurer pledges to provide a predetermined sum assured in the event of specific unfortunate occurrences. These events can range from the death of the insured to damages incurred by the insured or their property.
Types of insurance policies
- Life insurance: This type of insurance focuses on securing the financial well-being of your family. The sum assured is disbursed to the nominee upon the insured’s death.
- Health insurance: Health insurance, categorized as a general insurance contract, encompasses two primary types:
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- Mediclaim insurance: Compensates for medical expenses incurred during treatments.
- Critical health insurance: Offers lump-sum payments for severe and life-threatening health conditions.
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- Non-life insurance: Designed to cover losses arising from specific financial events, it includes various categories such as car insurance, home insurance, and more.
