Get Started With Insurance - Part 1 : The Basics

As a part of this blog I would be covering various aspects of investment, one of which includes insurance. Before delving into the details of insurance which will ultimately help you decide whats best for you in insurance ,I thought it would be good to get started with a lesson on what insurance. This is the first article covering the basics of insurance which anyone looking at an insurance policy should be aware of. I shall be posting the links for the further parts when they are ready. For now lets get started :) ..
Click here for Part II of the series

What is insurance and how many types are they?

The basic aim of Insurance is protection and safety of individuals and their assets. It protects us from financial loss due to future contingencies. There are three types of Insurance services available in the market today-
1) Life Insurance
2) General Insurance
3) Health Insurance

What is Life Insurance?

Life insurance is a certificate issued by Life Insurance Company to the borrower assuring them of a Sum to the nominee if the borrower is no more. Example: Mr. A has taken a Life Insurance policy from ‘X’ Life Insurance Company by making his wife as a nominee. Due to life uncertainties if the life assured is no more, the Life Insurance Company has to pay the Sum Assured to the Nominee.

What is General Insurance?

General Insurance means protecting the loss or damage that happens to the movable or immovable properties. General Insurance can be taken to protect the vehicles (Vehicle Insurance is mandatory in India), house, house hold articles etc., Example: Mr. A car has got damaged in a road accident, he can claim the repairs work amount from his general insurance company or a theft happened in the house, general insurance company will bare the loss of articles which were stolen.

What is Health Insurance?

Health Insurance is something which is very essential and useful in medical emergencies and hospitalisation expenses. Many Health Insurance companies offer cash less services in all the major hospitals. Health Insurance policy will play a very major role in the old age illnesses. But one should be very careful in selecting the health insurance policy in the angle of how many diseases the policy is covering, whether the existing diseases are covered or not?, there are primary things one should look when buying a Health Insurance policy.

Before buying any type of Insurance policy, one should better to compare the feature of the policy and services offered with the competitor companies.