Insurance is all about PROTECTION from any financial loss. Any form of insurance is meant for protection and mitigating risk of uncertainties which might occur in the form of death, disability, accident, medical emergency, business loss, professional liability and others.
How does it work?
Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured). In this, the insurance company promises to make good the losses of the insured on happening of the insured contingency. To cover the risk of potential loss, there is a premium which needs to be paid to the Insurance company.
What are the types of Insurance available in India?
Insurance in India have been classified in to three different categories:
What is Life Insurance?
As the name suggest, life insurance is insurance on your life. Life insurance is bought to make sure your dependents are financially secured in the event of your untimely demise or disability which restricts the income of the breadwinner of the family.
In India Life Insurance is the most miss-sold product. But in recent past, the understanding and the approach towards life insurance products has changed. Form investment cum insurance product it is now being propagated a purse risk cover product. But there are different variants of Life Insurance still present like- Term Insurance, Endowment Plan, Money Back, Whole Life Insurance, ULIPs and others.
We at InvestEnbale mostly suggest for pure risk cover plans which are Term Insurance, which can be bundled with different riders like critical illness, accidental benefit, disability benefits and others. Term Insurance is the cheapest insurance in which only the risk is covered and there is no investment component. Since the premium is low there is no maturity pay-outs. The sum assured is paid only in case the event occurs.
What is Health Insurance?
Health insurance is a kind of insurance coverage in which the insurer pays for medical and surgical expenses suffered by the insured. This type of insurance compensates the insured for expenses incurred from illness, injury or pays the care provider directly. The premium paid towards a health insurance policy usually covers treatment, hospitalization and medication costs
Choosing the right general insurance policy where you will invest your money on can be very tiring and stressful with all the amazing options that are available in the market.
We at InvestENable would understand your requirement and would suggest the right health Insurance depending upon your estimated medical cost, age, family members you want to cover and other factors.
What is General or Non-Life Insurance?
General insurance is insurance for valuables other than our life. General insurance covers the insurer insurance of property against fire, bulglary, theft, personal insurance covering health, travel and accident; and liability insurance covering legal liability. The premium and cover of general insurance depends upon the type and extent of insurance. A general insurance policy typically has a period of a few years and does not have cover for lifetime.
In India, general insurance policies are of the following types motor, fire, home, marine, health, travel, accident, professional indemnity, liability insurance, shop insurance.
People have been ignoring general insurance as they do not consider it to be relevant but it is very important for a common man. For corporates and professionals like doctors, it is really important as you have to safeguard yourself against any sort of liability which might occur in the due course of your providing services to your clients.
We at InvestEnable advocate General Insurance planning as a risk management tool which hedge against the risk of contingent, uncertain loss.