This article provides you a brief info about the different types of insurance policies available in India. It is very necessary for every individual to know about insurance policies available in the market to opt for the right one and to be always on the secure side.
There are broadly 8 types of Insurance, known as-
- Life Insurance
- Motor insurance
- Health insurance
- Travel insurance
- Property insurance
- Mobile insurance
- Cycle insurance
- Bite-size insurance
These are the major types of insurance available in India.
The below figure will give you complete information on different types of insurances other related information.
Insurance Policies generally classified as General Insurance and Life Insurance which are further classified as different insurance policies, let us have a brief note on different types of insurance policies.
1. General Insurance -
- Health Insurance
- Motor Insurance
- Home Insurance
- Fire Insurance
- Travel Insurance
2. Life Insurance -
- Term Life Insurance
- Whole Life Insurance
- Endowment Plans
- Unit-Linked Insurance Plans (ULIP)
- Child Plans
- Pension Plans
1. General Insurance:
These policies offer coverage to the policyholder in the form of a sum assured against the losses incurred other than death. General insurances provide financial protection for the losses due to liabilities such as bike, car, home health, and other similar types.
HEALTH INSURANCE:
Health care insurance policies either pay or reimburse the amount paid towards the healthcare treatments. This policy covers medical care expenses. The policy usually offers protection.
- Hospitalization
- Treatment of critical illness
- Medical Bills post hospitalization
- Day care procedures
Apart from these, there are some healthcare insurance plans that cover the resident treatment and pre-hospitalized expenses. Due to the rising cost of medical care in India, healthcare insurance has become a necessity. There are various insurance plans in India like:
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Individual Health Insurance- It offers insurance coverage only to an individual
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Family Floater Insurance- It offers coverage for the whole family (usually Husband, Wife & Two Children).
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Critical Illness Cover- It offers coverage for critical illnesses like stroke, heart attack, kidney failure, cancer, etc. This coverage provides a lumpsum amount for the policyholder for diagnosis.
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Senior Citizen Health Insurance- This insurance caters to the individual above 60 years (Terms apply)
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Group Health Insurance- This is offered by an employer to the employee
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Maternal Healthcare Insurance- This insurance offers protection for both mother and the new-born, it covers the prenatal, postnatal, delivery expenses.
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Personal Accident Insurance- This insurance covers financial liabilities for accidental injuries or death, disabilities.
MOTOR INSURANCE:
This insurance offers financial assistance for the policyholder in case of the person's bike or car gets involved in an accident. The types of Motor insurance in India include.
1. Car Insurance-
An individual who owns four-wheelers or different types of cars is applicable for this insurance cover policy.
2. Bike Insurance-
This offers protection for the bike accident or other related expenses.
3. Commercial Vehicle Insurance-
This policy offers insurance to any type of vehicle-related to commercial purposes.
HOME INSURANCE:
This policy offers financial protection for the structure of the house, content, and any physical destruction or damage. Also, for any man-made or natural calamities like fire, earthquake, tornado, burglaries, robbery, etc. Home insurance policy involves:
- Home Structure/Building Insurance
- Public Liability Coverage
- Standard Fire and Special Perils Policy
- Personal Accident
- Burglary and Theft Insurance
- Contents Insurance
- Tenants Insurance
- Landlords Insurance
FIRE INSURANCE:
As the name itself explains about the insurance policy, this policy aids any loss that has caused due to any fire breakout, this is applicable for the individual, companies, etc, to reopen the places where the fire accident incurred, and the expenses will be covered by the policy.
Types of Fire Insurances in India are-
- Comprehensive Fire insurance policy
- Consequential Policy
- Floating Policy
- Replacement Policy
- Specific Policy
- Valued policy
TRAVEL INSURANCE:
This insurance policy provides coverage for travel that is for visiting places in India or abroad, be it an individual solo journey or with family travel insurance ensures the coverage for loss of baggage, flight cancellations, loss of passport, personal and medical emergencies while travelling. This policy includes.
- Domestic Travel Insurance - Within in India
- International Travel Insurance- Vacations within or outside India
- Individual Travel Insurance- For solo Traveller
- Student Travel Insurance- For the student going abroad for studies
- senior citizen travel Insurance- For people above age 60 yeas
- Family Travel Insurance- For family vacations.
2. Life Insurance:
Life Insurance offers financial protection for unfortunate damages, there are different Life Insurance policies in India like.
- Term Life Insurance
- Whole Life Insurance
- Endowment Plans
- Unit-Linked Insurance Plans
- Child Plans
- Pension Plans
Tax Benefits available for different Types of Insurance:
Under Section 80C and under Section 80D amount paid towards the insurance premiums offer tax a deduction. The insurance policies offer tax deduction up to a maximum of 1.55 lakh
What are the factors defining life insurance coverage?
Most important factors that Life insurance coverage usually includes- Age of the policyholder
- Claim history
- Health conditions – both current and history
- Location
- Occupation
- Smoking and drinking habits
- Type of insurance policy
Bottom Line:
As now you are aware of different types of insurance policies that are available in India, select the type of insurance suits you and create the protection of r you and your loved ones. Through the insurance plans, you can secure both your and your family’s future.