Insurance is a kind of financial investment to get an assurance for covering risk. It is a contract between an insurance company and an individual where an insurer promised to give a financial protection against losses bear by an insured.
The company collects a premium from policyholders to pay the sum amount to an insured who has suffered the losses and also to keep a profit margin.
INSURANCE HAS FIVE MAJOR CATEGORIES.
Life Insurance covers the risks associated with life. The policyholder holder pays a premium to an insurance company every year so that his /her family should not suffer from any financial crisis when he will not be around.
Health Insurance compensates the heavy medical bills arise due to treatment of critical illness or injury. It also covers hospitalization charges, medical practitioner fees, drug bills, medical test charges and etc.
Property insurance covers financial risk associated with house or vehicle. It gives financial aid to an insured in case of damage or theft or loss of property.
Investment plans In this policy, an insured gets financial coverage as well as channelizes his money in various investment plans to grow his/her hard earned money.
Travel insurance In this plan, an insured gets financial coverage and security while travelling in India or in abroad against loss of baggage/ passport, terror attack and cancellation of flights/trains.