Insurance services are the services provided by the insurance companies via a legal agreement between the insured person and the insurance companies in which the insurer undertakes to cover risks by providing compensation for specified loss , damage, illness or death in return for payment of a specified premium.
Types of Insurance
The most common types of insurances are:
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- Life insurance – It provides the monetary compensation to the nominee or the beneficiary if the policy holder died during the policy term.
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- Health insurance – Provides coverage against medical emergencies and hospital expenses such as critical ill treatment, pre and post hospitalization ,etc.
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- Home insurance – Protects your house against any physical damage such as by earth quake, fire, flood or any other unforeseen event.
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- Motor insurance – It offers financial assistance in case your vehicle has met up with an accident .
Benefits of insurance
Some of the benefits of insurance are,
Wealth preservation
Endowment and money back plans are the safest and long term investment plans and helps you to preserve your wealth from inflation and taxes for long period.
Risk sharing
Insurance services pool premium and risks from a large number of people and this allows insurer to pay out the claims without using their own capital.
Tax benefits
Under section 80D of IT Act ,the premium paid for individual health insurance are eligible for tax deductions.
Other benefits are loan option, accidental hospitalization, financial safety, etc.
Conclusion
The guidance of Mr. Arun Narang will be helpful to you to choose the best insurance services for yourself.
