What is Life Insurance or Life Insurance Definition
In this way, the insured gets coverage against death. life insurance, two parties (the insurance company and the policyholder) sign a contract with mutual understanding.
A contract of life insurance, the policyholder pays a fee called premium to get coverage against specified events and the insurer pays a fixed sum assured in the event of a loss.
Nowadays life insurance companies offer many types of insurance to meet all the insurance needs.
Types of Life Insurance
a) Term Life Insurance
Term insurance is also called pure life insurance. In this, the insured buys an insurance policy for a fixed term (5 years, 10 years, 15 years, and above) and if the life insured dies during the term of the policy, the sum insured is decided by the insurance company. given to the nominee.
If the Life Assured does not die by the end of the policy, no cash value is paid.
b) Loan Life Insurance
In this type of insurance, the borrower is prepared to repay the loan taken by him in the event of his death. Having such a policy can save the borrower’s family from the financial burden of debt after his death.
c) Permanent Life Insurance
A life insurance policy is taken for a fixed or indefinite term and the insured continues to pay premiums for the term of the policy. A permanent life insurance policy continues as long as the insured continues to pay premiums.
Cash-value also accumulates in such policies, which are given to the insured on the completion of the policy term or is given to his nominee on his death.
There are two types of insurance available in permanent life insurance: whole life insurance and universal life insurance.
d) Endowment Insurance
This policy is designed to pay Sum Assured on the death of the Life Assured and on the survival of the policyholder at the end of the policy term. In this way, benefits can be availed in both ways in this policy. An endowment insurance policy is a type of savings policy that comes with insurance cover.
If a person wants retirement planning or savings account with insurance cover, then he can opt for such a policy.
Also Read: What is Insurance and Types of Insurance
Non-Life Insurance or Non Life Insurance Definition
Non-life insurance is also known as general insurance. This type of insurance provides coverage for damages other than benefits available for example health insurance, home/property insurance, auto insurance, business insurance, etc.
In other words, you can say that other than life insurance products the types of insurance that provide cover are non-life insurance products.
Mobile or gadget insurance comes under non-life insurance in which the policyholder gets compensation for physical damage or damage to his electronic gadgets such as mobile phones, laptops, tablets, LED TVs, notebooks, etc.
Health insurance is also classified under non-life insurance. Health insurance policies provide cover for medical expenses incurred in hospitals for treatment of accidents or illnesses.
Here below are the types of general insurance.
a) Motor Insurance
In motor insurance, insurance is purchased for the vehicle in which the vehicle is indemnified and third-party damages are indemnified. By law, the driver must have third-party insurance or a comprehensive policy to drive a vehicle on the road.
We have told in separate posts that what are the types of motor insurance and which motor insurance should be bought.
b) Home Insurance
Home insurance provides protection to the house and its belongings, it is also one of the types of insurance. In case of loss of house in natural calamity or theft of house items, insurance is done by the insurance company.
Most people do not get home insurance, but such policies are very cheap and their benefits are also more. In our separate post, we have discussed this topic in detail.
c) Travel Insurance
In this type of insurance as the name suggests, the policy provides coverage for accidents and medical emergencies that occur during travel. Travel insurance is available at very affordable rates and mostly where you go to buy travel insurance while booking air or railway tickets.
It is worth mentioning that after the end of the trip, the travel insurance also lapses.
For example, suppose you have taken travel insurance for air travel from Delhi to Australia, now when you reach Australia safely, your policy will be closed.
d) Gadget Insurance
It is a new type of insurance that insurance companies have devised to provide protection to the existing technological gadgets. Coverage for electronic devices is provided in such an insurance policy. Insurance policies can be taken for almost every electronic product such as mobile phones, laptops, notebooks, LED TVs.
e) Health Insurance
Health insurance also comes under general insurance. This type of insurance provides coverage for health-related needs which include hospitalization expenses and even compensation to the family after death.
f) Crop Insurance
Crop insurance has been prepared for the farmers, in which if the farmer’s agriculture is damaged due to natural calamity or any other reason, then the farmer gets compensation from the insurance company.
Some types of insurance have also been introduced by the government to provide protection to the farmers.
g) Fire Insurance
Fire insurance covers damages caused by fire. Often businessmen lose millions of crores due to fire, so to avoid such losses, they can choose this type of insurance.
h) Marine Insurance
Marine insurance is taken to cover damages caused to goods in voyage during import and export. You must have seen many times that big ships get sunk due to sea storms and all the goods loaded in them also sink with them, due to which the traders suffer a lot.
In such situations, the loss is covered by Voyage Marine Insurance.
i) Employer Liability Insurance
If an employee is injured or dies while working in a factory, then by law the owner of the company has to pay compensation to the person or his family.
