Insurance simply put is a compensation in event of loss or damage which will be received by the insured by payment of amounts of money at regular intervals. An Insurance Policy can be bought by an individual for an individual or his/her family, by a corporate for their employees, by NRIs. An insurance policy can provide cover for life, retirement, health, property (like house, car or any other valuables), children, and accidents and so on. There are Insurance solutions to meet the needs of agricultural and rurally based businesses as well. Insurance is a provision fund for seen and unforeseen events. It can also serve as an investment or a savings fund. Moreover it is proved to be a tax saving tool. There are many types of insurances available in the market, few of which we will discuss in this article.
Life Insurance
Life is precious and it is impossible to fix a numerical value of its worth but in order to provide a cover in occurrence of an event of any unfortunate nature (or even death) an amount is ascertained for the person taking the insurance policy. A policy is bought for the sum assured which will be payable to the policyholder or the beneficiary (as the case may be) at maturity of the contract for which an agreed sum (premium) is paid to the insurer by the policyholder. Different varieties of Life insurance available are:
- Unit-linked Insurance Policy or ULIPs
ULIP is an insurance policy which combines the benefits of life insurance as well as investment. The premium is apportioned between the life cover and portfolio of shares (equity, debt and cash markets). ULIPs offer flexibility to switch between one fund class to another depending on the individual’s risk factor. Returns variable depending on the fund’s market performance. ULIP products range from single premium to a regular premium option along with investment funds ranging from index funds to mid-cap funds and debt market linked funds.
- Traditional Plan
Traditional Insurance Plans are savings plans which offer bonuses, thus serve as excellent long term saving instruments with complete safety.
- Term Plan
Term Assurance, rather temporary assurance is a protection plan for a specified period. No benefit is paid if the policyholder dies outside the period. This form of insurance is mostly used to cover the period of loan, mortgage etc. so that the burden of repayment (of the mortgage, loan etc.) is not shouldered by his/her family but instead is settled by the insurance company.
- Pension/Retirement Plan
Pension Plans provide for that stage of your life when you retire from your work life.
- Child Insurance
To ensure that the child’s receives all that he/she deserves needs a strong financial backing such as a Child Insurance which will also be an investment so that no matter what has life in store for you, you are able to provide the best for your loved one. These plans provide for education at various intervals during a child’s life. It is always easier to save a small amount on a regular basis so that a lump sum amount is available at right times, when needed.
- Women Insurance
To cater to women’s special needs women specific plans provide investment benefits, savings, Retirement solutions and medical insurance. Special plans are available help mothers plan for their children’s education, save for the future and take care of all medical emergencies in the family.
- Maternity Insurance
Few Insurance Companies offer policies that cover expenses of would-be mothers. Group insurance policies usually provide for expectant mothers.
- Group Insurance Plan
One of the best ways for employers to retain their employees is to show them that their organization cares not only for them but also their families. Group Insurance is an insurance which covers a group of people (like employees of a common employer or professionals in a common group).
Health Insurance
Health Insurance helps to collectively pool risk (in case of group insurance), to provide for medical expenses. It sometimes covers a disability or long-term nursing or custodial care needs. The covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. They provide crucial financial support to your dependents in case of your unfortunate death. Some insurance companies provide OPD or out-patient expenses cover while others provide for hospitalization bills only. This product is available in two forms mediclaim or cash-less policy.
Motor Insurance
Auto Insurance covers loss or damage to motor vehicles and any legal liabilities for bodily injury or damage to other people’s property. Drivers have a legal obligation to be covered against third party claims but most drivers or owners have a comprehensive insurance, which provides a wide coverage of all the risks involved in owning a motor vehicle. Special motor insurances are also available for women drivers. Motor insurance is mandatory.
Rural Insurance
India is predominantly an agricultural country so it becomes important to insure its agricultural heritage. Farmers are the cultivators of healthy India. Rural Insurance is the answer to all the needs of agricultural and rurally based Businesses.
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Tags: CHILD INSURANCE, Group Insurance Plan, Health Insurance, Insurance for expectant mothers, Life Insurance, MOTOR INSURANCE, Pension/Retirement Plan, RURAL INSURANCE, term plan, Traditional Plan, Unit-linked Insurance Policy or ULIPs, Women Insurance
