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types of insurance,What is insurance? Types of Insurance2022

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types of insurance
What is insurance? Types of Insurance – Their Uses
Types of Insurance : In life, unplanned expenses are like a bitter truth.
Even when.you.think you are financially secure,
a sudden or unexpected expense can seriously undermine this security.
Depending on the emergency situation, such situations can also leave you in debt.

You.cannot.plan.ahead for.contingencies arising from such events.
Insurance policies provide support to reduce financial
liability from unexpected events.types of insurance

types of insurance,What is insurance? Types of Insurance

Types of Insurance 2022 : Coverage, Benefits
There are insurance policies that suit you to protect your
health or certain aspects of your assets.types of insurance

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1 Life Insurance
2 Motor insurance
3 Health insurance
4 Travel insurance
5 Property insurance
6 Mobile insurance
7 Cycle insurance
8 Bite-size insurance

This article will help you to know the different insurance policies.
You need to know how these plans work.
Without adequate information about each of them,
you.may.not be able to protect your finances,
as.well.as.the.financial well-being of your family members.
Read this to know all you need to know about different insurance policies.

1. Life Insurance

Life insurance refers
to a.policy.or cover through which the
policyholder can provide financial freedom to his/her family members after death.
Suppose you are the sole earner in your family,
supporting your spouse and children.types of insurance

In such a case, your death will ruin the entire family financially.
Life insurance policies ensure financial support for your family.

Types of Life Insurance

There are mainly seven types of insurance policies when it comes
to life insurance. These are:
Term Plan – Death benefit from a term plan is available only for a specific period.

For example, the policy is for 40 years from the date of purchase.
Insurance policies where a portion of your premiums go towards the death benefit,
while.the.rest is invested by the insurance provider.
Maturity benefits,
death benefit and periodic bonus are some of the benefits from endowment policies.

  1. Like Unit Linked Insurance Plans or Ulips – Endowment Plans, a portion of your insurance premiums goes towards mutual fund investments, while the rest goes towards the death benefit.
  2. Whole life Insurance – As the name suggests, such policies provide life cover for a person’s entire life instead of a specific term. Some insurers may limit the whole life insurance term to 100 years.
  3. Child plan – Investment cum insurance policy, which provides financial support to your children throughout their life. A death benefit is available as a lump sum payment after the death of a parent.
  4. Money-back – Such policies pay a certain percentage regularly over the term of a plan. This is called survival benefit.
  5. Retirement plan – Also known as pension plans, these policies are a combination of investment and insurance. A portion of the premiums goes towards creating a retirement corpus for the policyholder. It is available to the policyholder as a lump sum or monthly payment after retirement.types of insurance

Benefits of Life Insurance 

  • If you have a life insurance plan, you can get the following benefits from the policy.
  • Tax benefits – If you pay life insurance premiums, you are entitled to tax benefits in India under section 80 (c) and 10 (10 d) of the Income Tax Act.
  • Hence, you can save a lot of money in taxes by taking a life insurance plan.
  • Encourages saving habit – Buying such an insurance policy, as you need to pay the policy premiums
  • Encourages the habit of saving money.
  • Secures family financial future – This policy ensures that the financial independence of your entire family is maintained even after your death.
  • Helps in planning your Retirement – ​​Some life insurance policies also act as investment options.
  • For example, pension plans provide a lump sum payment as soon as you retire. This will help you fund your retirement.types of insurance

2. Motor Insurance

Motor insurance refers to policies that provide financial assistance in case of accidents with your car or bike. Motor insurance can be availed for three types of motorized vehicles,

Types of Motor Insurance In Telugu

  1. Car insurance – Individually owned four wheelers are covered under such policy.
  2. Two wheeler insurance –Individually owned two-wheelers, including bikes and scooters, are covered under these plans.
  3. Commercial Vehicle Insurance – If you own a vehicle that you use for business, you should get insurance for it. These policies ensure that your business automobiles are at their best, reducing losses significantly.

Types of Motor Insurance Policies : Based on the scope of policy cover or protection, motor insurance policies are of three types, namely: –types of insurance

  1. Third Party Liability – This is the most basic type of motor insurance in India. This is the minimum mandatory requirement for all motorized vehicle owners under the Motor Vehicles Act 1988. Due to limited financial support, premiums for such policies are also low.These insurance plans pay financial liability only to the third party affected by the said accident, ensuring that you do not face any legal trouble due to the accident. However, they do not provide any financial assistance to repair the policyholder’s vehicle after accidents.
  2. Comprehensive Cover – Compared to the third party liability option, comprehensive insurance plans offer better protection and security. Apart from covering third party liability, these plans also cover the cost of repairing damages to the policyholder’s own vehicle due to an accident.types of insuranceAdditionally, comprehensive plans also provide payment if your vehicle is damaged due to fire, man-made and natural calamities, riots and other causes.

    Finally, if your bike is stolen, you can get it back when you have comprehensive cover. There are also many add-ons to choose from with their comprehensive motor insurance policy that is compatible. Some of these add-ons are zero depreciation cover, engine and gear-box protection cover, wearable cover, breakdown assistance etc.

  3. Own damage cover – This is a special form of motor insurance that insurance companies offer to consumers. Further, you are eligible to avail such a plan only if you purchase a two-wheeler or a car after September 2018. The vehicle should be brand new and not second hand.You should also remember that you can get this independent damage cover only if you already have a third party liability motor insurance policy. With this own damage cover, you basically get the same benefits as a comprehensive policy without the third party liability part of the policy.types of insurance

Benefits of Motor Insurance 

Cars and bikes were more expensive in the days gone by. At such a time, not having proper insurance can lead to serious financial losses for the owner. Below are some of the benefits of purchasing such a plan.

  1. Avoids legal hassles – helps you avoid traffic fines and other legalities.
  2. Covers All Third Party Liability – If you injure a person or damage someone’s property in a vehicle accident, an insurance policy can help you meet monetary losses.
  3. Financial assistance to repair your own vehicle – After accidents, you have to spend a lot of money to repair your own vehicle. Insurance plans limit out-of-pocket expenses, allowing you to get repairs done right away.
  4. Theft / Damage Cover – If your vehicle is stolen, your insurance policy will help you recover a portion of the on-road price of the car / bike. You can expect similar assistance if your vehicle is damaged beyond repair due to accidents.
  5. Additionally, people owning a commercial car / two-wheeler can also get tax benefits if they pay premiums for that vehicle.types of insurance

3. Health Insurance

Health insurance refers to a type of general insurance that provides financial assistance to policyholders when they are admitted to hospitals for treatment. In addition, some plans also cover the cost of treatment undertaken at home before or after hospitalization.

With rising medical inflation in India, buying health insurance has become a must. However, before proceeding with your purchase, know the different types of health insurance plans available in India.types of insurance

Types of Health Insurance 2022

There are eight main types of health insurance policies available in India. They are: Individual Health Insurance – These are health care plans that provide medical cover to just one policyholder.

  1. Family Floater Insurance – These policies allow you to get health insurance for your entire family without having to buy separate plans for each member. Generally, a husband and wife and their two children are allowed health cover under such a family floater policy.
  2. Critical Illness Cover – These are specialized health plans that provide extensive financial assistance to the policyholder in case of specific, chronic illnesses. Unlike regular health insurance policies, these insurance plans provide a lump sum payout after such a diagnosis.
  3. Senior Citizen Health Insurance – As the name suggests, these policies specifically provide health cover to people aged 60 years and above.
  4. Group Health Insurance – Such policies are usually offered to the employees of a company or organization. It is designed in such a way that the old beneficiaries are removed, and new beneficiaries can be added according to the capacity of the employees of the organization.
  5. Maternity health insurance – These policies cover medical expenses during the pregnancy, post-natal and delivery stages. It covers the mother as well as her newborn.
  6. Personal accident insurance – These medical insurance policies only cover financial liabilities arising out of accidents, injuries, disability or death.
  7. Preventive Healthcare Plan – Such policies cover the cost of treatment related to preventing a serious disease or condition.types of insurance

Benefits of Health Insurance 

After evaluating the various types of health insurance available, why not get such a plan for yourself and your loved ones? You must be thinking that. Check out the reasons given below for you to understand.

  1. Medical Cover – The primary benefit of such insurance is that it provides financial coverage against medical expenses.
  2. Cash less claim – If you seek treatment at one of the hospitals affiliated with your insurance provider, you can avail the cashless claim benefit. This ensures that all medical bills, your insurance and hospital related matters are settled directly.
  3. Tax benefits – Those who pay health insurance premium can get income tax benefits. A tax benefit of up to Rs 1 lakh can be availed on premium payment of their health insurance policies under Section 80D of the Income Tax Act. There may be additional benefits depending on the insurance provider.types of insurance

4.Travel Insurance

While talking about different types of insurance policies, don’t forget to know more about travel insurance plans. Such policies ensure financial security of the traveler during the trip.

Hence, when compared to other insurance policies, travel insurance is a short-term cover. Depending on the provider you choose, travel insurance can cover baggage loss, trip cancellation and financial assistance at various times.types of insurance

  1. Domestic travel insurance –This is a travel insurance policy that protects your finances while traveling in India. However, if you intend to step outside the country for a vacation, such a policy will not be of any help.
  2. International travel insurance – If you are going out of the country, make sure you opt for an international travel insurance plan. It allows you to cover unexpected expenses that may arise during your trip such as medical trips, loss of luggage, loss of passport.
  3. Home Holiday Insurance – When you are traveling with family, chances of robbery are high if your home is unsecured. Essentially, it can lead to significant losses. However, with home holiday insurance schemes often included in travel policies, you are financially protected against such incidents.types of insurance

Benefits of Travel Insurance 

The following items are covered under travel insurance plans:

  1. cover flight delay – Flight delay or cancellation can lead to significant losses for passengers. If you take out travel insurance, you can claim such financial losses from the insurer. Baggage loss/delay – Travel insurance allows you to get financial assistance in case of delay or loss of your luggage during the trip.
  2. Baggage loss cover (recovery of lost travel documents) – Visa and passport are important documents for international travel. International travel insurance provides you with the financial support you need when needed and to re-apply for interim or re-documents.
  3. Trip Cancellation Cover – A sudden death in the family or a medical emergency can play spoil sports with your travel arrangements. Thankfully, international travel insurance plans support trip cancellation in such incidents.types of insuranceYou can get financial help to pay fines and cancellation charges for flights, hotels etc. Make sure you choose the insurance company carefully, especially one that is reliable and available 24×7 to help you.types of insurance

5. Property Insurance

Any building or fixed structure property can be insured through insurance schemes. It can be your residence or place of business. In case of any damage to such property, you can get financial assistance from the insurance provider. Remember that such a plan also protects the contents of the property financially.

Types of Property Insurance 

Here are some types of property insurance policies in India:

  1. Home Insurance – With such a policy, you can be freed from all financial liabilities incurred due to damage to your home or its contents due to fire, burglary, storms, earthquakes, explosions and other incidents.
  2. Shop Insurance – If you have a shop that serves as a source of income, it is good to protect yourself against the financial liability arising from it. Due to natural calamities or accidents, with these plans, you can immediately undertake repairs to the shop.
  3. Office insurance – Another type of property insurance policy, office insurance ensures that the office building and all the equipment inside are protected in case of unforeseen events. Generally, office spaces have expensive equipment like computers, servers and many more. Hence, getting these plans is essential.
  4. Building insurance – If you have a complete building, opting for home insurance is not enough. Instead, you can purchase building insurance to cover the entire premises.

Benefits of Property Insurance 

If you still think that property cover is not one of the insurance plans you should get, take a look at some of its benefits.types of insurance

  1. Fire insurance – Although an insurance policy cannot prevent fires, it can prevent financial liabilities from such an event.
  2. Robberies – If your property is in an area prone to theft and robberies, such a policy is vital to ensure financial security.
  3. Floods – Floods are common in some parts of India. These floods can lead to more damage to your property. Property insurance also protects against such incidents.
  4. The plan also provides financial assistance against loss caused by natural calamities – earthquakes, cyclones and many more. Property renovation is very expensive. Therefore, property insurance policies are the best option to ensure long-term financial health.

6. Mobile Insurance

Due to the increasing cost of mobile phones today and their many applications, it is imperative to insure this mobile device. Mobile insurance allows you to recover the money you spent on repairing your phone in case of accidental damage. Moreover, you can claim the same in case of phone theft, making it easy to replace the handset with a new phone.types of insurance

Benefits of Mobile Insurance 

Mobile insurance policies are very beneficial, especially for those who own a premium smartphone.

  1. Full protection for new devices – Phones depreciate over time. Hence, when the handset is new, phone insurance can help preserve its significant value.
  2. Coverage against damage to the screen – If you accidentally damage the smartphone screen, one of the important parts of such devices, your insurance plan will cover the repair costs.
  3. Smartphone theft or robbery – There is nothing worse than buying your dream smartphone and losing it due to theft or robbery. If such an unfortunate thing happens, phone insurance can help you buy a replacement handset.Some insurance companies may not allow you to purchase insurance for a smartphone after a month or two passes from the purchase of the handset .types of insurance

7. Cycle Insurance

Bicycles are valued in India as some people rely on these vehicles for their daily commute. A bicycle insurance policy ensures that you have adequate funds in case of accidental loss or theft of your bicycle. This will save you out-of-pocket expenses, while also making repairs to the vehicle.

Benefits of Cycle Insurance 

Benefits of getting such an insurance policy:types of insurance

  1. Worldwide coverage – Depending on the insurance provider, bicycle insurance policies provide financial assistance regardless of where your bicycle is damaged. Even if you have a cycling accident in another country, a plan like this will help.
  2. Protection against Fire and Riot – In case your bicycle gets damaged due to accidental fire and / or riot, the insurance policies provide the necessary financial assistance to repair or cancel the damage.
  3. Accidental Death Benefit – If you die due to bicycle accidents, the insurance policy for bicycle provides a lump sum payment to your surviving family members. Regardless of the cost of your cycle, opting for insurance can greatly reduce your financial responsibilities.

8. Bite-Size Insurance

(Bite-size insurance) These policies refer to sachet insurance plans that reduce your financial liability for a very limited period, usually up to one year. These insurance plans allow you to protect your finances against certain losses or threats.types of insurance

For example, exclusive Bite-size insurance covers an accidental Rs. 1 lakh per annum.. You can opt for this policy when you think that you are likely to suffer accidental injuries. Another example is insurance coverage for certain diseases.

For example, if your area is prone to water-borne diseases like cholera, you can opt for a policy that covers cholera treatment and all expenses for a period of 1 year.

The primary advantage of bite size insurance policies is that it allows you to get financial protection at very limited rates. The premiums are so low that it has no impact on your total monthly expenses. The sum insured is important.types of insurance

Things to Check when buying an Insurance Policy Online

Things to Check While Taking Insurance Policy Online Service Benefits –

  1. You should look at the service benefits like 24/7 customer support, convenient pick-up & drop for your vehicle and a network of cashless garages.
  2. Choose the right amount insured – The right amount insured helps ensure that you are fully covered in case of an emergency.types of insuranceInsurer’s Claims Speed ​​– Claims are the reason you buy insurance. So check how long your insurance company takes to settle the claims.

Best Value – If you are satisfied with the service and the amount insured, check the premium and discount you are getting. If you like this article, please share it with others. Send your opinion in the comment box below.

I think you have got the information you need in this article. Also if you have any doubts about types of insurance in telugu you can immediately let us know through a comment.

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