Insurance is a contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party for a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event. The agreement / contract are put in writing and are known as ‘policy’. The person whose risk is insured is called ‘insured’ and the firm which insures the risk of loss is known as insurer / assurance underwriter.
Insurance is a basic need and requirement for all human being. Insurance gives you and your family the guaranteed protection from all types of difficulties. Insurance works as the guarantee card. It gives you the guarantee of giving a predetermined amount/sum at the time when you, your family or your assets are suffering from any bad happening.
For example: If you purchase a refrigerator, you get a guarantee or warrantee card. Because of that card you use that refrigerator without any tension. Similarly, when you purchase an insurance product, you get similar type of guarantee for you and your family automatically and feel relaxed in your future life.
Types of Insurance Plans in India
- Term Plan: Term life insurance ensures that your family receives a large lump sum amount, called the sum assured, in the unfortunate event of death of the policyholder.
- Child Plan: As a parent, you always like your child’s bright career. Child plans ensure that in case of death of the parent, the company pays all future premiums on behalf of the parent. This means that the child gets money at important stages of his/her student life and education never suffers due to lack of funds. It offers financial protection to your child’s future in the unfortunate event of your death. This plan is beneficial because of Increasing costs of education, multiple interests of children & tax benefits.
- Wealth Plan: Wealth insurance plans is designed to ensure that you can save for your long term goals such as car , home etc along with the benefit of life cover and provide protection to your family. Wealth insurance ensures that you receive a lumpsum amount of money at the maturity of the Policy. In the unfortunate event of death during the term of the policy, your family receives lumpsum amount, called the Sum Assured. Thus it combines the benefits of protection and saving in a single instrument. This plan is beneficial for regular saving, protection & tax benefits
- Health Insurance: This plan is designed to ensure that you and your family get the medical treatment whenever you need it. It insures you against expenses arising due to a medical emergencies and uncertainty of health. It is necessary to get quality health care during unexpected medical emergencies.
- Retirement Plan: Retirement insurance ensures that you or your family members receive a regular pension amount after a retirement date. Retirement plans are designed to provide you the financial security to fulfill your unfulfilled dreams. Insurance companies give you the flexibility to choose the retirement date and the manner in which you receive the pension. It is beneficial for longer retirement years, financial independence after retirement & to beat the inflation
- Group Plan: Group Plans meet the savings & financial security needs of the employees and their families. In this way Company safeguards its employee family’s future and serves as great encouragement for its employees.
- ULIP: ULIP is a category of goal-based financial solution that combines the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing us the life cover and the remaining portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund (equity or bond or in both) opted by us .The ULIP plan offers flexibility and transparency to policyholders.