Insurance Meaning And Types

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Dear Readers welcome to insurancemarketz.com, greetings of the day, as we all know that our lives is becoming hectic and due to want and need of speedy growth in life as our aspiration grows on a daily basis. So, in order to fulfil these aspirations of ours we have to work very hard but these hard works and aspirations needs a kind of security and protection which can be only provided through various insurance policies. So to provide complete information on the importance of insurance and why we need life insurance or other insurance policies is explained in very simple words in the following paragraphs.

<<||Importance Of Insurance||>>

As we say PRECAUTION IS BETTER THAN CURE….so whenever we start using any vehicle it’s our first responsibility to insure our vehicle. In current era we have lots of things to worry so why we increase our extra tension in form of a vehicle without insurance. Now remove this tension from your life and live free and happy. Every individual in this world is subject to unforeseen uncertainties which may make him and his family vulnerable. At this place, only insurance helps him not only to survive but also recover his loss and continue his life in a normal manner.

In today’s tech friendly world and with power of internet, we can find the answer of any question which comes in our mind by just simply using the Goolge, Wikipedia, etc., many a times we even don’t have to use google if we know the the website or we know what we are looking or searching for and where we can find the answer of our search. There are many websites tells us about what is the best and what we can choose in terms of policies in the World or India like Policy Bazaar, Bank Bazaar, Cover Fox, Life Insurance Corporation Of India, Max Life Insurance, etc., but generally speaking they don’t provide the basics of Insurance, so we thought of sharing our knowledge with you in order to have a better understanding of Insurance And Its Terms. So, let’s go through this article.

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After hearing the word “Insurance” automatically a question come in our mind that what is an insurance and why it is important so let’s understand, what is an insurance ?, and why it is important ?

Provides Safety and Security to Individuals and Businesses: Insurance provides financial support and reduces uncertainties that individuals and businesses face at every step of their lifecycles. It provides an ideal risk mitigation mechanism against events that can potentially cause financial distress to individuals and businesses). For instance, with medical inflation growing at approximately15% per annum, even simple medical procedures cost enough to disturb a family’s well-calculated budget, but a Health Insurance would ensure financial security for the family. In case of business insurance, financial compensation is provided against financial loss due to fire, theft, mishaps related to marine activities, other accidents etc.

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In some sense, it’s a thing providing protection against a possible eventuality. INSURANCE is a practice or arrangement by which company or government agency provides a guarantee of compensation for specified loss, damage, illness or death in return for a payment of a premium.

A contract in which an individual or entity receives financial protection or reimbursement against losses from an company. The company pools clients’ risks to make payments more affordable for the insured.

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It is a generally acknowledged phenomenon that there are enormous risks in every sphere of life. For property, there are fire risks; for shipment of goods, there are perils of sea; for human life, there are risks of death or disability; and so on. The chances of occurrences of the events causing losses are quite uncertain because these may or may not take place. In other words, our life and property are not safe and there is always a risk of losing it. A simple way to cover this risk of loss money-wise is to get life and property insured.

life insurance

Every risk involves the loss of one or other kind. In older time, the contribution by the person was made at the time of loss. Today, only one business, which offers all walks of life, is insurance business. Owing to growing complexity of life, trade and commerce, individual and business firms and turning to insurance to manage various risks. Every individual in this world is subject to unforeseen uncertainties which may make him and his family vulnerable. At this place, only insurance helps him not only to survive but also recover his loss and continue his life in a normal manner.

Importance of Insurance:

  • Provide protection against occurrence of uncertain events.
  • Co-operating method of spreading risk
  • Financial support
  • Medical support

Types Of Insurance Policies:

Insurance can be widely segregated in four categories –

  1. Own damage,
  2. Comprehensive,
  3. Third Party and
  4. Personal Accident.

different types of life insurance explained

  1. Comprehensives ones that cover all types of wear and tears to the vehicles and its rider.
  • ACCIDENTS: A minor error in judgment can cause a major accident. We’ll take care of the damages to your bike in case of an accident.
  • THEFT: Finding out that your bike is stolen is an absolute nightmare. We’ll pay you your bike’s Insured Value in case of bike theft.
  • FIRE: It’s scary to see your bike catch fire! We’ll cover damages caused to your bike due to fire resulting from self-ignition, explosion, and lightning.
  • CALAMITIES: Natural and man-made calamities can wreak havoc. We’ll cover damages caused to your bike due to earthquake, riots, etc. 
  • BIKE OWNER COVERS: Apart from covering third-party losses and damages to the bike, we also provide death and disability cover for the bike owner.
  • THIRD-PARTY LOSSES: Bike accidents can result in injury to, and death of, any third party. Property can also be damaged. We’ll cover damages related to third-party losses.
  1. Liability only policies that cover only against injuries arising third-party action.
  • THIRD-PARTY LOSSES: Bike accidents can result in injury to, and death of, any third party. Property can also be damaged. We’ll cover damages related to third-party losses.

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Thank you, for giving your precious time in reading our article, we hope you liked our article and if any suggestions or you want to have any more information on a particular insurance related term or policies please share your valuable thoughts in the comment box provided below.

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