Types of Insurance

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There are two main types of insurance. Such as life insurance and general insurance. It covers different aspects in your life. And see what is Health Insurance is. For better understand check insurance premium calculator. Hence, check what is Cancer Insurance? You can see insurance quotes.

Life Insurance

Life Insurance provides monetary benefit to family. Furthermore, it provides for income to an insured person’s family, burial, funeral and other final expenses. However, Life insurances policies allow option to pay to beneficial either in Lump Sum cash payment or an annuity.

In this policy, Insurance Company pays in case of demise of policy holder or at time of maturity of policy. Now a day’s new policy has launched by insurance companies. You will be cover under insurance policy even after maturity of policy. Hence, main products of life insurance are whole life, Endowment, Term, ULIP, money back policy.

General Insurance

General Insurance is basically an insurance policy. That protects you against losses and damages other than those covered by life insurance. For more coverage, you have to know about risks covered. It ensures that you and your family are protect from unforeseen losses.

Mostly, general insurance policies and plans are covered for one year. But premiums are normally paid on one time basis. However, general insurance risks are covered by property loss. Like stolen car or burnt house, liability arising from damage caused by you to third party. In addition, like accidental death or injury.

Therefore main products of General Insurance include Motor insurance, fire, and personal accident insurance. Additionally, medical, health insurance and travel insurance.

Benefits of life insurance

Benefits from both life insurance and general insurance are significant not only for your peace of mind but the future of your family as well. The primary advantage is the cash value coverage during your life-time. Many individuals choose to buy insurance while they are still young since they can make use of its cash value by borrowing or drawing from it during their lifetime. Another benefit is that, it is tax-free for no tax is paid on any interest or earnings attached to cash value accounts.

What is Insurance Premium?

Insurance premium is money an individual or business must pay for an insurance policy. But amount of insurance premium is paid out by policyholder to insurance company depends on variety of factors.

However, Insurance premium is specific amount set by insurance company. Therefore individual must pay to maintain actual coverage of insurance. As process, insurance companies look at type of coverage. Probably, claim is made where policyholder lives, his employment. Like habits (smoking for instance), medical condition (diabetes, heart ailments) among other factors.

For example, likelihood of claim is for heart attack or cancer or another critical illness by individuals. And across various age groups and lifestyles. But risk linked with claim more expensive insurance premium will be.

You have number of options offer by Insurance companies. So it comes to payment of insurance premium. Generally, you can pay insurance premium in installments. For example monthly or semi-annual payments or they can even pay entire amount upfront before coverage starts.

In case of non- insurance like auto insurance.  Therefore insurance company will reduce annual insurance as no-claim year. On other hand, premium can rise following yearly claim. In term, or length, of your policy is determining cost of your insurance premium? Hence, check how car insurance rates are determined.

Finally, you can see what Term Insurance is. In addition, you can also check Health Insurance Comparison. And also see Insurance plans in India. Therefore check advantages and disadvantages of Insurance. Hence, for more details see premium health insurance.

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