Now days every person is focus on his life and property. Their focus is because of the fear of death, illness, injuries or any damage to his property. Because of these damages they face the loss of money. To avoid this insurance is a good way to convert these risks to insurance companies.
WHAT IS INSURANCE?
Two parties sign authorized contract that is called insurance, two persons are involve in it;
- Insurer (insurance company person)
- Insured (individual)
In case of any incident insurance company recover your damage by paying amount. Due to incident you face loss sometimes bigger loss or sometimes smaller. You can claim insurance in two ways;
- When the policy holder died
- When your property damage or any incident happened with you.
It is known as contingency because in it uncertain event is involved. But for insurance you as insured have to pay some amount to accomplish the task of insurance company.
WHAT ARE THE TYPES OF INSURANCE
Here we discuss the 5 main types of insurance; these types are as follow;
1. LIFE INSURANCE:
For the insurance of life you must need to avail life insurance policy. It is important to ensure the lives of family, wife and children etc. if you face any accident or you suddenly died then insurance companies give your policy to your family. In the case of single earner, or your family is totally depend on you then life insurance is very important. If the person died during policy then insurance company give monthly amount to your family.
2. HEALTH INSURANCE:
If you buy health insurance then insurance company pay your bill during your treatment especially hospital bills etc. but the amount of bill paid by insurance company is depend on your health policy. This type of policy is also specific for specific diseases. E.g.
- If you want general treatment then general policy is better for you
- But if you want to buy policy for some specific diseases then you can buy that policy also.
Insurance company gives only 3 types of health services; treatment of disease, hospital payment and medical bill.
3. CAR INSURANCE:
Now days car holder buy car insurance policy because it is important policy and also the need of time.
- In case of any accident this policy protects you from major loss.
- In natural calamities e.g. floods or earthquakes, if your car face any damage then insurance company pay you amount for this.
- If you face any accident and other car owner face damage then also insurance company pay amount.
4. EDUCATION INSURANCE:
Education insurance and life insurance is similar policies as the main purpose of this policy is to save money for future use. In education policy there is age limitation for child, if he/she reached at this place then they can claim this policy otherwise no. it is mostly for the higher studies. Your given fund for policy is used by your child for education purposes. According to this policy only children can claim this policy or get cash and before their age limit parents are the owner of this policy. If you want to calculate the total amount of policy then you can also calculate this with the help of Education Planning Calculator.
5. HOME INSURANCE:
Own house is the dream of everyone. In case of any natural calamities, threats, accidents home insurance can give you favor by giving amount to recover damage or loss. It also give you favor in case of earthquakes.