Insurance: Its Types and Benefits

Today, insurance is one of the most talked-about topics worldwide. Those who have basic knowledge of it, want to know more in detail and those who just hear about it, want to get familiar with this term. Insurance is indeed an arrangement in which an insurance company promises to pay compensation to the insured in the event of any damage, accident or demise. Given the risk, uncertainty and danger that involve in our day-to-day life, getting insurance cover is almost a must.

Types of Insurance and its Benefits

In insurance, different policies have different benefits. Given below are insurance types along with the advantages associated with these:

Ø Life Insurance: This is arguably the most popular insurance policy. In this policy, the insured pay a fixed amount monthy, quarterly, half-yearly or yearly to the insured company. When the policy gets matured, the insured gets return as promised. If any casualty to the person insured happens, the insurance company pays the amount of compensation to his/her legal heir. It is important to note here that the policy that pays high in case of death or deformity, returns less on the maturity of the policy.

Ø Personal Accident Insurance: As the name of the policy clearly suggests, this policy takes care of hospital bills in case the insured gets admitted in hospital after meeting with an accident or heavy compensation in case of death.

Ø Medical Insurance: This insurance policy, true to its name, pertains to the expenses related to medicines, hospital bills and operation expenses if the need arises. The insured person gets compensation for any or all these expenses as per the requirements.

Ø Vehicle Insurance: If you owe a car, motor cycle or any vehicle then vehicle insurance plan or vehicle insurance is for you. This type of insurance policy proves to be helpful in the accident or theft of your vehicle.

It is very important to take this policy because vehicle happens to be one of the most valuable things in our belongings. Even if any minor mishap occurs, you may have to pay heavy for getting your vehicle in the condition it was before the accident. If your vehicle is insured, you can throw the concerns related to these types of expenses to the wind.

Ø Home Insurance: In the home insurance plan, the insurance is done in accordance with the goods and structures of the building. In this insurance, company carries out the expenses of both home and its goods. This insurance works in the wake of collapse of the house, theft of goods, burning or any such mishaps which cause heavy destruction to the home and its belongings.

Ø Travel Insurance: If you are a travel enthusiast, then this insurance is exclusively for you. You can seek insurance cover for yourself (if you travel alone) or for your entire travelling family members. This insurance policy takes care of any damage, destruction or loss arising out in the course of journey.

Ø Crop Insurance: This is the best insurance policy, if you happen to be a farmer. It is said that the farmers have to face the vagaries of the nature and if the rain is not adequate in any given year, your whole planning for the entire year, may get disturbed. This insurance will protect you against the crop damage arising out due to less amount of rain or any such unforeseen circumstances.

Ø  Other insurance plan: In this heading, there are mainly three types of insurance:

·       Pet Insurance
·       Political Risk Insurance
·       Marriage Insurance

                                                                     ---Ashish Jha


  1. I can't belief that thr is anything like marriage insurance or pet insurance...It's really interesting to know about them. :)