Insurance is a legal agreement in which there are two parties i.e. the insurance company and insured Individual.
The insurance company promises to provide financial coverage to insured on the mishappening. Mishappening can be the death of the insured or damage of the property.
The insurance policyholder pays a premium in return for the promise made by the insurer.
How Does Insurance Work?
The insurance company provides an insurance policy to the insured individual. In an insurance policy, they include information about the insured conditions and circumstances under which the insurance company will pay out the sum assured. Insurance is a way of protecting yourself and your family against financial loss.
Any individual or organization can seek insurance policy from an insurance company. But the decision to provide insurance is the only responsibility of the insurance company.
The insurance company takes risk of providing a high sum assured as very few insured people end up claiming the insurance. That’s why people get insurance for a big amount at a low price.
Do You Need Insurance?
There are a plethora of different types of insurance you can get according to your need. But some insurance is compulsory like you can’t drive a car without basic car insurance. Moreover, you can’t get a mortgage on your house without insurance.
After compulsory insurance, the most important thing is to protect yourself and your family.
The type of insurance that you need depends on what you want to protect.
First, of all, Ask Yourself What’s Important to you:
- People who travel abroad, they must choose travel insurance to get hospitalization expenses if you get injured or sick.
- If you have children and you died unexpectedly? Life insurance would help financially.
- If you have a big mortgage and you became too ill to work?
- So Income protection insurance could cover your payments.
Different Types of Insurance Available in India
Life Insurance is a legal agreement between insurance companies and insured individuals. As it can help your family against financial uncertainties that may arise post the unfortunate event of your untimely demise.
Health Insurance is a type of insurance that covers the medical expenses of an individual in a medical emergency.
Car insurance is a compulsory policy for every car owner. This insurance protects against any contingency like accidents.
Education insurance is a great way to provide the sum assured for your child’s higher education.
Home insurance provides coverage in case of any loss or damage to your home due to accidents like fire and other natural calamities. In addition, it covers other instances like lightning, earthquakes, etc.
What are the Tax Benefits On Insurance?
Apart from the security benefits of insurance, there are income tax benefits that you can avail of.
- You can save tax by buying life insurance up to ₹1.5 lakh.
- Medical insurance for yourself and your family can save tax under Section 80D.
You can buy an insurance policy online. As there are many insurance agents and websites as well that you can buy an Insurance policy from. Investmarket.in is the best website where you can buy insurance at a lower premium with high sum assured.