Hello friends, somewhere you must have heard the name of insurance. So after your thoughts, I will clear all your confusion if you read it completely.
Hello, everyone In today’s article we are going to discuss what is insurance? What is insurance after all? What is the benefit of having insurance? FACTSKINGDOM
Insurance is a tool that protects us from future financial losses. That is, insurance covers the risks associated with life and property.
As We All Know That Any Accident Can Happen At Any Time In Anyone’s Life, So Insurance Cannot Stop Any Happening In Future, But Due To That Particular Miss Happening, There Is Financial Loss. Insurance Protects Us From That. That Is, The Insurance Company Compensates For That Loss.
So let us know under which procedure insurance works after all?
Insurance Is A Legal Agreement. It Happens Between Two People To Ensure And Insured. The Insurance Company Is Called Ensure, And Insured Is Called The Person Who Insures Himself. So What Is The Legal Agreement Between These Two. That Is, The Insurance Company And The Person Who Has Got His Insurance Done. There Is A Legal Agreement Between These Two, This Legal Agreement Is Called Insurance Policy. So Whatever The Terms And Conditions Are Related To That Particular Insurance, All Of Them Are Mentioned In The Insurance Policy. Both The Parties Agree On All Those Terms And Conditions. That Is, The Insurance Company And The Person Who Has Got His Insurance Done. So According To The Terms And Conditions Decided In The Insurance Policy, The Insured Has To Pay A Fixed Amount To The Insurance Company On A Regular Basis, Which Is Called a Premium. How Much Will Be The Amount Of Premium, When Will It Have To Be Paid? That Is, When And When Will It Have To Be Paid Monthly Quarterly Yearly? It Will Depend On The Policy Which Insurance Policy Is Taken. After Taking An Insurance Policy, If There Is Any Loss To That Person, Then The Insurance Company Compensates For That Loss If That Loss Is Covered In The Insurance Policy Taken By That Person. That Is, If That Loss Satisfies The Terms And Conditions Of The Insurance Policy Taken By That Person, Then Only The Liability Of The Insurance Company Becomes To Compensate For That Loss. So That Is Why It Is Very Important To Check Its Terms And Conditions Thoroughly Before Taking Any Insurance Policy.
The Purpose Of Insurance Is Not To Bring Profit To Any Person, But The Purpose Of Insurance Is That Any Person Can Bring The Insurance Company Back To The Same Financial Level Before That Particular Loss Occurred. That Is, The Amount Of Loss Caused To That Person Is Compensated By The Insurance Company.
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Now if we talk about the types of insurance, then there are mainly 2 types of insurance:-
- LIFE INSURANCE
- GENERAL INSURANCE
Life insurance and general insurance i.e. all types of insurance other than life insurance are considered as a general insurance:-
- Life insurance:- In this insurance the insurance company promises, if something happens to the insured person in future, then according to the terms and conditions decided in the insurance policy taken by him, the insurance company will pay a fixed amount to that person’s family. People take this insurance policy to secure their companionship. Because today she herself is the support of her family, but God forbid that if something happens to her tomorrow, then in that condition her family does not have to face bad days, so life insurance is taken.
- General Insurance:- As all the types of insurance that are different from life insurance, they are all covered in general insurance. Such as health insurance, home insurance, motor vehicle insurance, crop insurance etc…
- Health Insurance: – In this insurance, the insurance company compensates for the expenses due to health issues. But the insurance company compensates for the cost of treatment only then. When the treatment is done in any of the same hospitals, which are mentioned in the insurance policy by the insurance company.
- Home Insurance: – In this insurance, the insurance company compensates for the damage caused to the house due to fire, theft, natural disaster, etc.
- Motor vehicle insurance: – In this insurance, the insurance company compensates for the loss caused due to the accident or theft of the vehicle. Third-party insurance is compulsory in India.
- Crop Insurance: – This insurance protects the farmer from the loss due to the failure of his crop. That is, if the crop fails, it is compensated by the insurance company. This insurance becomes very important when a loan has been taken to grow that crop. And if the crop is ruined due to some reason, then money is available in that way.
So Now You Know When You Should Take Insurance. When Is It Needed? So I Hope Friends, You Have Liked This Information Very Much, If You Want Some More Information, Then You Can Comment Below.so That In The Coming Days You Will Get To See About It Too. Rest Of You And Many More Information Will Be Found On This Blog Of Ours. By Reading Which You Can Gather A Lot Of Information. So For Now That’s All We See With The New Block. Till Then Thank You.