Introduction: What is Insurance?
Insurance is a financial product that provides protection against unforeseen risks. Whether it’s life, health, vehicle, or property, insurance ensures that you and your family are financially secured during emergencies.
Why is Insurance Important?
Insurance acts as a safety net. It helps reduce financial stress during unexpected events like illness, accidents, or loss of life. By paying small premiums regularly, you get large financial coverage when you need it the most.
Types of Insurance (with Subcategories)
1. Life Insurance
- Term Insurance – Affordable pure risk cover.
- Whole Life Insurance – Coverage for your entire life.
- Endowment Plans – Insurance + savings.
- ULIPs (Unit Linked Insurance Plans) – Insurance + investment returns.
2. Health Insurance
- Individual Health Plans – For single persons.
- Family Floater Plans – Covers entire family under one premium.
- Critical Illness Cover – Special coverage for major illnesses.
3. General Insurance
- Motor Insurance – For cars, bikes, and commercial vehicles.
- Home Insurance – Protects your house and valuables.
- Travel Insurance – Covers risks during domestic/international trips.
Benefits of Having Insurance
- Financial security during emergencies.
- Peace of mind for you and your family.
- Tax benefits under Section 80C and 80D.
- Encourages disciplined financial planning.