In this reality where problems are undeniable and unavoidable, Insurance fills in as a safeguard, giving money-related protection whenever any unexpected event occurs. In any case, browsing the gigantic scene of insurance policies can lead you into dilemmas.
Insurance is vast and diverse, with each policy tailored to cover specific facets of our lives. In this blog passage, we will see different types of insurance, understand what these insurance types cover, and why getting the right Insurance is fundamental for your peace of mind.
What are the 7 types of Insurance?
Now, let us see about different types of Insurance one by one:-
Health Insurance
How about we start with the Insurance closest to the human being i.e., Health Insurance or Medical coverage? This kind of Insurance incorporates a wide scope of clinical costs, from standard check-ups to significant medical procedures.
Most healthcare insurance coverage cover:
- Hospitalization Expenses: In-patient consideration costs, including room charges, specialist's charges, nursing charges, etc.
- Short-term Care: A few strategies cover short-term administrations, for example, specialist visits, indicative tests, and professionally prescribed drugs.
- Preventive Consideration: Vaccinations, screenings, and well-being checks might be covered to empower the proactive well-being of the executives.
- Pregnancy-related expenses, such as prenatal care and delivery, are covered by many health insurance plans.
Auditing the points of interest of every healthcare Insurance is fundamental, as inclusion can shift. A few plans could cover elective treatments, psychological well-being administrations, and restoration costs.
Sometimes, there are Insurance companies that are very specific about the portion of Health they cover. For instance, Dental Insurance, Vision Insurance, Pregnancy Insurance, etc.
Some types of Health Insurance policies in India are:-
- Health Maintenance Organization (HMO)
- Preferred Provider Organization (PPO)
- Exclusive Provider Organization (EPO)
- Point of Service (POS)
- High Deductible Health Plan (HDHP)
- Catastrophic Health Insurance
- Indemnity Health Insurance
General Insurance
General Insurance is a contract that covers the monetary misfortune experienced because of the loss of the insured resource. Insurance protects us from any unexpected circumstance that could disturb our ordinary life and prosperity. A general insurance policy only covers non-life risks.
It is a strategy or understanding between the policyholder and the insurance plan company, which is viewed solely after the acknowledgment of the premium. The policyholder pays the premium with a financial stake in the covered asset. The guarantor will safeguard the protected from monetary risk in misfortune.
Auto Insurance
Auto Insurance is a financial plan that considers vehicles and drivers in the event of disasters, burglary, or various events that may result in damage or setbacks. It is an understanding between the policyholder (the person who has the security) and the Insurance office.
The policyholder pays regular premiums to the insurance organization; thus, the contingency plan agrees to provide financial protection in case of covered events. The various types of automobile insurance policies in India are:
Liability Coverage is one of the crucial components of Auto Insurance. It covers significant bodily injury and property damage that the policyholder may cause to others in an accident for which they are responsible. It helps pay for clinical expenses, legitimate charges, and property hurt for the other party.
Coverage for Impact or Collision is planned to pay for fixes and repairs to the policyholder's vehicle in case of an accident with another vehicle or thing, regardless of who is at fault. This consideration, much of the time, requires the policyholder to pay a deductible before the protection organization deals with the overabundance costs.
Comprehension Coverage is the shield against non-collision events, similar to theft, mutilating, disastrous occasions, or encounters with animals. A Deductible may apply.
Personal Injury Protection (PIP) or Medical Payments Coverage covers clinical expenses for the policyholder, regardless of who is at fault. PIP is more prominent and may cover lost remuneration and other related costs.
Uninsured/Underinsured Driver Coverage shields the policyholder if they are related to a setback with inadequate or no driver insurance. Medical expenses, property damage, and other costs may be covered if the responsible party cannot pay.
Rental Reimbursement Coverage helps cover the cost of leasing a vehicle while the policyholder's car is fixed due to a covered event.
Gap Insurance Opening security is an optional consideration that covers the differentiation between the genuine cash worth of a vehicle and the total owed on a vehicle credit or lease in the event of a total setback.
Renter’s Insurance
In the present world, with a rapidly increasing population and a decrease in available land, only some have keys to homeownership. For those living in rental properties, the importance of protecting individual belongings and ensuring money-related security is becoming necessary daily. This is the place where leaseholders' protection makes a mark as unobtrusive.
Personal Property Protection includes coverage for theft, a devastating fire, or other covered problems; renters insurance ensures you don't bear the financial burden alone.
If your rental unit becomes uninhabitable on several occasions, like a fire, a burst pipe, or some serious situation, then this Insurance comes to help.
Travel Insurance
For travel geeks, travel insurance adds extra security to your journeys. It includes Trip Cancellation or Interruption and recovery of non-refundable payments. It also ensures financial assistance for medical expenses and evacuation in case of illness or injury while traveling. It also recovers the financial loss incurred due to lost, stolen, or damaged luggage and personal items.
There are travel delays due to adverse weather, technical glitches, or unforeseen circumstances. In these situations, travel insurance also helps. Travel insurance helps in potential setbacks and turns opportunities into opportunities by compensating for additional expenses during delayed or canceled flights.
Life Insurance
Life insurance is a type of insurance that does not directly benefit the policyholder. But it helps protect its family after the demise of the policyholder. It provides the beneficiaries, i.e., the policyholder's family, with some amount of cash known as the Death Benefit, which they can use for survival and fulfilling their basic needs in this time of high rising inflation. The two types of life insurance policies in India are:
- Term Life Insurance: In this kind, the beneficiaries benefit if the policyholder dies within a specific time, like 20 or 30 years. People generally find it more reasonable. In the event of a terminal illness, it provides both a total payout and, in some cases, partial payouts. Four sorts of payout decisions are available: single sum, single sum notwithstanding pay, and extending endlessly pay. But one issue with this kind of Insurance is that it should be re-energized around the completion of each term, and the fees are higher under the new terms. If an individual has a medical issue, they will not have the option to apply.
- Whole Life Insurance: The other life insurance type is Whole Life Insurance. This additional security gives incorporation to the entire presence of the policyholder, and the beneficiaries would get the consideration aggregate free of the policyholder's age. Its costs are consistent throughout time.
Business Insurance
If you are a business owner, it becomes essential for you to invest in business insurance for various benefits such as financial protection, legal compliance, stress-free risk management, and attracting investors and partners. Multiple types of business insurance include property insurance, liability insurance, business interruption insurance, workers' compensation, errors and omissions insurance (E&O), cybersecurity insurance, etc. Further, worker's compensation insurance is mandatory in India, especially for businesses with large workforce.
Some of the best insurance companies in India are ICICI Lombard, HDFC Ergo, Tata AIG., Bajaj Allianz, New India Assurance, etc. Due to the increasing use of insurance, the government has provided various schemes to boost insurance reach. Knowing what is covered under different types of insurance makes it easy for us to make a proper decision in choosing the appropriate insurance.
