Before buying an insurance policy, it is stringent to understand the different types of insurance policies and then choose the ones that lineup with your needs.
Types of Insurance You Should Know
There are 2 different types of insurance in India can be generally divided into two categories:
- General Insurance
- Life Insurance
Different Types of Insurance Policies Available in India
1. General Insurance
Following are some of the types of general insurance available in India for all:
- Health Insurance
- Motor Insurance
- Home Insurance
- Fire Insurance
- Travel Insurance
2. Life Insurance
There are various types of Life Insurance. List of most common types of Life insurance plans available in India are there below:
- Term Life Insurance
- Whole Life Insurance
- Endowment Plans
- Unit-Linked Insurance Plans
- Child Plans
- Pension Plans
General Insurance
General insurance contracts are one of the sorts of protection that offer inclusion as aggregate guaranteed against the misfortunes caused other than the demise of the policyholder. By and large, general insurance involves various kinds of protection contract that offer monetary security against misfortunes brought about because of liabilities like bicycle, vehicle, home, wellbeing, and comparative. These different general insurance sorts of protection contracts include:
Health Insurance
Health care coverages are sorts of insurance contract that covers the costs brought about because of clinical consideration. Health care coverage designs either pay or repay the sum paid towards the treatment of any ailment or injury. Various kinds of insurance contract cover changed clinical consideration costs. Health care coverages.
There are a couple of sorts of health care coverage designs likewise cover the expense of inhabitant treatment and pre-hospitalization costs. Increasing expenses of medical services in India Is making health care coverage a need. Various sorts of medical coverage plans accessible in India include:
- Individual Health Insurance
- Family Floater Insurance
- Critical Illness Cover
- Senior Citizen Health Insurance
- Group Health Insurance
- Maternity Health Insurance
- Personal Accident Insurance
Motor Insurance
Motor protections are kinds of protection that offer monetary help with case your bicycle or vehicle engage in a mishap. Different kinds of Motor insurance contracts in India include:
- Car Insurance
- Bike Insurance
- Commercial Vehicle Insurance
Home Insurance
As the name proposes, a home insurance contract offers complete security to the items and construction of your home against any actual obliteration or harm. All in all, this protection type will give inclusion against any normal and human-made catastrophe, like fire, tremor, twister, thefts, and burglary.
- 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
Fire insurance contracts are various kinds of protection inclusions that repay any misfortunes caused because of a fire breakout with a total guaranteed. These kinds of insurance contract generally give a lot of inclusion to help the two people and organizations to return their places in the wake of causing broad harm because of fire. These protection types cover war risk, unrest, riots misfortunes also.
- Valued policy
- Specific Policy
- Floating Policy
- Consequential Policy
- Replacement Policy
- Comprehensive Fire insurance policy
Travel Insurance
As the name proposes, travel insurance is a kind of protection contract, giving monetary security to you and your friends and family while you are visiting any spot in India or abroad. Whether you are traveling alone or with your friends and family, the movement protection inclusion will assist with guaranteeing that you have a quiet excursion.
The movement insurance contract inclusion deals with any issues that you might look during your outing like loss of stuff, flight undoings, loss of visa, individual and health related crises. Various sorts of movement insurance contracts include:
- Domestic Travel Insurance
- International Travel Insurance
- Individual Travel Insurance
- Student Travel Insurance
- Senior Citizen Travel Insurance
- Family Travel Insurance
Life Insurance
Extra security plans offer inclusion against sad occasions like passing or incapacity of the policyholder. Other than monetary security, there are different kinds of life coverage approaches that permit the policyholders to expand their investment funds through standard commitments into various value and obligation reserve choices.
You can pick a life coverage strategy to get your family’s monetary future against life’s vulnerabilities. The strategy inclusion involves an enormous sum, which is payable to your friends and family on the off chance that anything happens to you. With this insurance type, you have the adaptability to pick the life coverage contract period, inclusion sum, and payout choice in view of the monetary necessities. Various sorts of life coverage strategy are as per the following:
- Term Life Insurance
- Whole Life Insurance
- Endowment Plans
- Unit-Linked Insurance Plans
- Child Plans
- Pension Plans
Term Life Insurance Plans
Term insurance is the most flawless and generally reasonable among the sorts of protection contract in which, you can choose an extravagance and luxury cover for a particular period. You can protect your family’s monetary future with a term extra security plan by paying a low superior (term insurance designs by and large have no development worth, and in this manner, offer lower paces of installment than other life coverage items.)
In the event that anything happens to you inside the strategy period, your friends and family would get the concurred Sum Assured according to the payout choice picked (some term protection types offer numerous payout choices also)
Whole Life Insurance Plans
Entire extra security plans, otherwise called ‘conventional’ life coverage plans, give inclusion to the whole existence of the safeguarded individual, rather than some other disaster protection instrument that offers inclusion for a particular number of years.
A whole life insurance plan includes a savings element that helps build a cash value throughout the course of the policy, in addition to offering to pay a death benefit. The full life insurance policy has a 100-year maturity period. The entire life insurance policy will turn into a matured endowment if the insured person survives past the maturity age.
Endowment Plans
Gift designs basically give monetary inclusion to the policyholder against life’s vulnerabilities, while permitting them to save consistently over a specific period. Endless supply of the enrichment plan, the policyholder gets a single amount sum in the event that the person endures the strategy term.
In the event that anything happens to you (as Life Insured), the life coverage gift strategy pays the total
Unit-Linked Insurance Plan
Unit Linked Insurance Plans are sorts of insurance strategy that offer both venture and insurance benefits under a solitary contract policy. A piece of the superior that you pay towards a Unit Linked Insurance Plan is designated to an assortment of market-connected value and obligation instruments.
The excess premium contributes towards giving the existence cover all through the approach residency. In this speculation cum-insurance type item, you have the adaptability to pick the designation of payment into various instruments according to your monetary prerequisites and market risk craving.
Child Plans
Kid plans are kinds of insurance contract that assists you with monetarily getting your kid’s life objectives like advanced education and marriage, even in your nonappearance. As such, kid plans offer a mix of reserve funds and protection helps that help you in the monetary making arrangements for your kid’s future requirements at the right age.
The amount of cash got on Maturity under this protection type can be utilized to satisfy the monetary prerequisites of your kid.
Pension Plans
Benefits plan, otherwise called retirement plan, is a sort of money growth strategy that helps you in gathering a piece of your reserve funds over a drawn out period.Basically, a benefits plan assists you with managing monetary vulnerabilities post-retirement, by guaranteeing that you keep on getting a consistent progression of pay even after your functioning years are finished.
All in all, an annuity plan can be a kind of protection in India that permits you to make a monetary pad for your life post-retirement, in which you contribute a particular measure of cash routinely until your retirement. Consequently, the gathered sum is rewarded you as annuity or benefits at customary spans.
With Max Life Insurance, you can find extensive plans, for example, Max Life Smart Wealth Plan or Max Life Smart Secure Plus Plan to satisfy your specific venture objectives and keep your friends and family monetarily secure.
Tax Benefits of Various Types of Insurance in India
Sum paid toward premium for various sorts of life coverage plans is charge deductible
1. Under Section 80C of annual assessment 1981, the exceptional payable towards a wide range of disaster protection plans is charge deductible up to Rs 1.5 lakh
2. Under Section 80D of personal duty 1981, the top notch payable towards a wide range of health care coverage plans is charge deductible, dependent upon a limit of Rs 25,000 for self, spouse and kids and extra 25,000 for guardians having age under 60 years (the expense reserve funds can go up to Rs 50,000 for senior residents individual and 50000 in the event that guardians are senior residents. Absolute allowance can go upto 1Lakh)