Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. People who buy insurance pay a “premium” (often paid every month) and promise to be careful (a “duty of care”). In exchange for this, if something bad happens to the person or thing that is insured, the company that sold the insurance will pay money back. An insurance policy is a contract that says what is insured and what the insurer and the insured must do. Types of insurance
Life insurance is a contract between the insured person and the company that is providing the insurance. It is a protection against the loss of income that would result if the insured passed away. There are various benefits that can be realized through the life insurance. Some of them are:
Mortgage Protection, protection against disabilities, children’s education, tax relief, marriage expenditure etc.
Life insurance is again categorized into different types.
Term life insurance
Term life insurance stays in effect for a specified period or until a certain age of the insured.
Whole Life insurance
Whole life insurance normally covers an individual until his or her death, unless it lapses due to non-payment of premium or is cancelled.
Non Life Insurance
It is also known as General Insurance. Insurance mainly concerned with protecting the policy holder from losses or damaged caused by specific risk.
The categorization of non life insurance is dependent upon the need level.
Health and Disability Insurance
Business and Commercial Insurance
Various types of non life insurance are commercial, marine, aviation, agriculture, health, financial, engineering insurance, travel insurance, home insurance etc.