Monday, 2 September 2019

Insurance Policies and Their Types

So That You Know Which Type And Plan Is The Best For You!

Introduction to Insurance
You must have heard that myth when they say just do your studies well and everything will be good after that. It never happens like that, does it? Well, what happens after is that they put a large mountain in front of us and give us a cycle and as us to start our journey of life on it. Also, what comes at the top when you have achieved the mountain summit? The only thing that waits for us there at the end of this epic life journey is death. 

And the whole journey is never smooth and easy, it sure is going to be a very heavy burden lifting race. In real life circumstances, these burdens are future securing plans. Such fears can really stress out the people heavily due to their haunting flavors.
 Fears can leave you in worries such as:
  • What will happen after I get retired?
  • Who will be there to look after for my household after I die or after I get retired?
  • How will I manage to pay for everything at daughter’s wedding day?
  • How will I be able to afford the expenses of my kids’ college education?
  • What if I ever get sick?
  • Who will cover for the expenses if I ever get into a car accident?

All such fears and worries can be overcome by the insurance.

What Is This Term ‘Insurance’?

When we talk about why should we need insurance, that is what we have explained you in the discussion above that, sooner or later, in one way or the other, almost everyone needs it. And if we talk about what insurance actually is and what is the entity of this term legally is?

Well, insurance carries legal binding as it is a contract, a contract to be carried down between the insurance company (and the insurer) and the individual or business organization (or you can simply call it the insured party). The contract binds the legality of payment by the insurer to the insured party in case of demand or need with proof of need. 

Simply saying, the insured party pays the annual payments in form of premiums and get their payments back either in case of need or collectively after the completion of the insurance policy time duration.

Basic Types of Insurance Policies According To the Societal Requirements

Currently, in the times today, there are even more than 20 to 30 types of insurance being offered to the people according to their own needs based on the different societal pressures on everyone in their different ways. However, the main categories are a few and we will be discussing them here today that the insurance policies are there for:
  • Life

As the name shows, the insurance for life or saying the term logically as ‘Life Insurance’, is for the people who are actually the earning point of a household. Such people earn the bread for their home and families, they are the source of income primarily for any home. The members of their families depend upon them for the financial requirements. 

Such people have to get themselves insured in case if something happens to them. This means that we all know that life is uncertain, only death is certain and it is going to come one day. But, truthfully you also leave people after your demise who are still in this world and they have to survive. Life insurance pays them in your place for them to meet their expenditures for a pre decided time span so they become able enough to earn for themselves.
  • Health

You must understand till now that how insurance works. Heavy amount of hospital bills can surely take you towards bankruptcy and not everyone can afford to pay heavy hospital bills. Health insurance is another kind of insurance idea which is sold in great deal all over the world. Usually health insurance can be in general but a few people also opt for the plans for specific diseases. 

The people pay premiums on annual yearly basis and their heavy medical bills are covered by the health insurance from the companies.
  • It may cover the following:
  • Hospitalization expenses
  • Treatment cost
  • Medical bills
  • Education

As with the research being done in this world, the education sector is also being explored and enhance with the technological upgradation and the research outcomes. With the expansion of education sector, it is also becoming very difficult for the people to cover for their educational expenditures.

Parents is this age also cannot provide the right amount of funds for their children’s high school or college education. However, what they can do is that they can pay a saved amount every year in the form of insurance premium so that it can cover for their child’s education when the time comes.

The owner of the policy are either the parents or any other person who is the legal guardian of the child. However, the child is ultimate recipient of the insurance payment at the time of policy maturity or any other time of demand in life as per their own needs.

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