World of Insurance Products
What is Insurance?
Definition: A legal agreement (policy) where an insurer agrees to compensate an individual or business (policyholder) for losses, damages, or liabilities in exchange for regular payments (premiums).
Purpose: Provides financial security, stability, and a way to manage risks by pooling them across many policyholders, making costs manageable.
Major Types of Insurance
1. Life Insurance
Protects your dependents financially after your death.
Term Life: Covers a specific period (term).
Whole Life: Covers your entire life and builds cash value.
ULIPs (Unit Linked Insurance Plans): Combines life cover with investments.
2. General Insurance (Non-Life)
Covers various assets, health, and liabilities.
Health Insurance: Covers medical expenses, hospitalization, prescriptions (e.g., Major Medical, Dental, Vision).
Auto Insurance: Covers vehicle damage and third-party liability (Liability, Collision, Comprehensive).
Home Insurance: Protects your home and belongings from fire, theft, natural disasters.
Travel Insurance: Covers losses during trips, like baggage loss or trip cancellations.
Business Insurance: Protects businesses from various risks, including liability and property damage.
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