A detailed guide about different Types of Insurance Policies in India 

During the whole of common existence, willing costs are a abusive honesty. However, when you trust that you are monetarily secure, an surprising or unexpected use can basically hamper this freedom.

With the understanding the strength of the catastrophe, aforementioned incidents grant permission similarly leave you responsibility-dominated. While you can't act in advance of potential arising from specific scenes, guardianship approaches offer a likeness to help to limit finances responsibility from unexpected occurrences. 

Skilled is a expansive outlook of care approaches, each in transit protecting particular parts of your well-being or possessions. Completely, skilled are 8 types of guardianship, particularly:

• Life Insurance 
• Motor insurance 
• Health insurance 
• Travel insurance 
• Property insurance 
• Mobile insurance 
• Cycle insurance 
• Bite-size insurance

Fundamentally experienced the various guardianship approaches doesn't help. Entirety being equal, you concede possibility skill everybody of these plans functions. Outside adequate facts about everybody of bureaucracy, you will seemingly be not able to secure your finances, while the finances affluence of your aunts. 

Examine aware catch used to all you need to consider the various guardianship approaches. 

1. Growth Security History inclusion alludes to an composition or cover by which the policyholder can guarantee liberty from the competition in life for welcome/her siblings in the hereafter. 

Adopt you are the alone obtaining contained your offspring, upholding your mate and kids. On specific an occasion, your fate would monetarily crush the complete offspring. Trouble care approaches guarantee that for all practical purposes this doesn't happen by bestowing finances help to your kin as long as of your passing.

 Types of Life Insurance Policies 

Skilled are generally seven various types of protection procedures when it meets expectations existence security. These are:

• Term Plan - The life insurance payment from a term plan is only applicable for a particularized ending, instance, 40 age from the date of tactics purchase.
  
  
• Ability Plan - Ability plans are history protection procedures place any of your premiums come nearer the survivor benefit, while the staying is adopted apiece security householder. Adulthood benefits, obliteration benefits,s, and routine bonuses are few types valuable from ability procedures.
• Whole Connected Security Plans or ULIPs - Identical to ability plans, any of your protection premiums goes toward investment fund assets, while the staying goes toward the survivor benefit.
• Whole Existence Security - As the name desires, aforementioned procedures offer existence show support for all existence of an individual, a suggestion of correction a particularized term. Few insurers grant permission confine all existence protection administration to 100 age.
• Child’s Plan - Contribution cum security procedure, that supports grant for your kids during the whole of their lives. The life insurance payment is vacant as a lump-total fee following in position or time the decease of persons.
• Services-Back - Aforementioned tactics pay the portion of the plan’s total confident later normal pauses. This is popular as a continuation benefit.
• Individual retirement account - As known or named at another time or place social security plans, these tactics are a melding of asset and security. Any of the premiums goes toward designing a retreat mass for the policyholder. This is free as a lump-total or weekly fee subsequently the policyholder retires.

Benefits of Life Insurance 

If you possess a life insurance plan, you can enjoy the following advantages from the policy. 

• Tax Benefits - If you pay life insurance premiums, you are eligible for tax benefits in India, under Section 80(C) and 10(10D) of the Income Tax Act. Thus, you can save a substantial sum of money as taxes by opting for a life insurance plan. 
• Encourages Saving Habit - Since you need to pay policy premiums, buying such an insurance policy promotes the habit of saving money. 
• Secures Family’s Financial Future - The policy ensures your family’s financial independence is maintained even after your demise. 
• Helps Plan Your Retirement - Certain life insurance policies also act as investment options. For instance, pension plans offer a lump-sum payout as soon as you retire, helping you to fund your retirement. 

Now that you know all about life insurance policies read on to understand the various facets of other general insurance policies. 

2. Motor Insurance 

Motor insurance refers to policies that offer financial assistance in the event of accidents involving your car or bike. Motor insurance can be availed for three categories of motorized vehicles, including: 

• Car Insurance - Personally owned four-wheeler vehicles are covered under such a policy. 
• Two-wheeler Insurance - Personally owned two-wheeler vehicles, including bikes and scooters, are covered under these plans. 
• Commercial Vehicle Insurance - If you own a vehicle that is used commercially, you need to avail of insurance for the same. These policies ensure that your business automobiles stay in the best of shape, reducing losses significantly. 

Types of Motor Insurance Policies 

Based on the extent of cover or protection offered, motor insurance policies are of three types, namely:

• Third-Party Liability - This is the most basic type of motor insurance cover in India. It is the minimum mandatory requirement for all motorized vehicle owners, as per the Motor Vehicles Act of 1988. Due to the limited financial assistance, premiums for such policies also tend to be below. These insurance plans only pay the financial liability to the third party affected in the said mishap, ensuring that you do not face legal hassle due to the accident. They, however, do not offer any financial assistance to repair the policyholder’s vehicle after accidents. 
• Comprehensive Cover - Compared to the third-party liability option, comprehensive insurance plans offer better protection and security. Apart from covering third-party liabilities, these plans also cover the expenses incurred for repairing the damages to the policyholder’s own vehicle due to an accident. Additionally, comprehensive plans also offer a payout in case your vehicle sustains damage due to fire, man-made and natural calamities, riots, and other such instances. Lastly, you can recover your bike’s cost if it gets stolen, when you have a comprehensive cover in place. One can also opt for several add-ons with their comprehensive motor insurance policy that can make it better-rounded. Some of these add-ons include zero depreciation cover, engine and gear-box protection cover, consumable cover, breakdown assistance, etc. 
• Own Damage Cover - This is a specialized form of motor insurance, which insurance companies offer to consumers. Further, you are eligible to avail of such a plan only if you purchased the two-wheeler or car after September 2018. The vehicle must be brand new and not a second-hand one. You should also remember that you can avail this standalone own damage cover only if you already have a third-party liability motor insurance policy in place. With your own damage cover, you basically receive the same benefits as a comprehensive policy without the third-party liability portion of the policy. 

Benefits of Motor Insurance 

Policies Cars and bikes are increasingly more expensive with each passing day. At such a time, staying without proper insurance can lead to severe monetary losses for the owner. Listed below are some advantages of purchasing such a plan. 

• Prevents Legal Hassle - Helps you avoid any traffic fines and other legalities that you would otherwise need to bear. 
• Meets All Third-Party Liability - If you injure a person or damage someone’s property during a vehicular accident, the insurance policy helps you meet the monetary losses, effectively. 
• Financial Assistance to Repair Your own Vehicle - After accidents, you need to spend considerable sums on repairing your own vehicle. Insurance plans limit such out-of-pocket expenses, allowing you to undertake repairs immediately. 
• Theft/loss cover - If your vehicle is stolen, your insurance policy will help you reclaim a portion of the car/bike’s on-road price. You can expect similar assistance if your vehicle is damaged beyond repair due to accidents. 

Additionally, individuals who own a commercial car/two-wheeler can also avail of tax benefits if they pay premiums for that vehicle. 

 3. Health Insurance 

Health insurance refers to a type of general insurance, which provides financial assistance to policyholders when they are admitted to hospitals for treatment. Additionally, some plans also cover the cost of treatment undertaken at home, prior to hospitalization, or after discharge from the same. With the rising medical inflation in India, buying health insurance has become a necessity. However, before proceeding with your purchase, consider the various types of health insurance plans available in India.

 Types of Health Insurance policies 

There are eight main types of health insurance policies available in India. They are: 

• Individual Health Insurance - These are healthcare plans that offer medical cover to just one policyholder. 
• Family Floater Insurance - These policies allow you to avail health insurance for your entire family without needing to buy separate plans for each member. Generally, husband, wife, and two of their children are allowed health cover under one such family floater policy. 
• Critical Illness Cover - These are specialized health plans that provide extensive financial assistance when the policyholder is diagnosed with specific, chronic illnesses. These plans provide a lump-sum payout after such a diagnosis, unlike typical health insurance policies. 
• Senior Citizen Health Insurance - As the name suggests, these policies specifically cater to individuals aged 60 years and beyond. 
• Group Health Insurance - Such policies are generally offered to employees of an organization or company. They are designed in such a way that older beneficiaries can be removed, and fresh beneficiaries can be added, as per the company’s employee retention capability. 
• Maternity Health Insurance - These policies cover medical expenses during pre-natal, post-natal, and delivery stages. It covers both the mother as well as her newborn. 
• Personal Accident Insurance - These medical insurance policies only cover financial liability from injuries, disability, or death arising due to accidents. 
• Preventive Healthcare Plan - Such policies cover the cost of treatment concerned with preventing a severe disease or condition. 

Benefits of Health Insurance 

After assessing the various kinds of health insurance available, you must be wondering why availing of such a plan is essential for you and your loved ones. Look at the reasons listed below to understand why. 

• Medical Cover - The primary benefit of such insurance is that it offers financial coverage against medical expenditure. 
• Cashless Claim - If you seek treatment at one of the hospitals that have tie-ups with your insurance provider, you can avail of a cashless claim benefit. This feature ensures that all medical bills are directly settled between your insurer and the hospital. 
• Tax Benefits - Those who pay health insurance premiums can enjoy income tax benefits. Under Section 80D of the Income Tax Act, one can avail a tax benefit of up to Rs.1 Lakh on the premium payment of their health insurance policies. 

There may be additional advantages, depending on the insurance provider in question. 

 4. Travel Insurance 

When talking about the different types of insurance policies, one must not forget to learn more about travel insurance plans. Such policies ensure the financial safety of a traveler during a trip. Therefore, when compared to other insurance policies, travel insurance is a short-term cover. 

 Depending on the provider you choose, travel insurance may offer financial aid at various times, such as during loss of baggage, trip cancellation, and much more. Here is a look at some of the different types of travel insurance plans available in the country: 

•  Domestic Travel Insurance - This is the kind of travel insurance policy that safeguards your finances during travels within India. However, if you plan to step outside the country for a vacation, such a policy would not offer any aid. 
• International Travel Insurance - If you are stepping out of the country, ensure you pick an international travel insurance plan. It allows you to cover the unforeseen expenses that can arise during your trip like medical emergencies, baggage loss, loss of passport, etc. 
• Home Holiday Insurance - When you are traveling with family, your home remains unguarded and unprotected. Chances of burglary are always significant, which may lead to significant losses. Thankfully, with home holiday insurance plans, which are often included within travel policies, you are financially protected from such events as well. 

 Benefits of Travel Insurance 

The following aspects are covered under travel insurance plans: 

• Cover Flight Delay - Flight delays or cancellations can lead to significant losses for the passenger. If you buy travel insurance, you can claim such financial losses from the insurer. 
• Baggage Loss/Delay - Travel insurance lets you claim monetary assistance if there is a delay or you happen to lose your luggage during the trip. With this amount, you can purchase some of the necessary items. 
• Reclaim Lost Travel Documents - Visa and passport are essential documents during an international trip. Opting for international travel insurance ensures that you have the necessary financial backing to reapply for interim or replacement documents as and when necessary. 
• Trip Cancellation Cover - A sudden death in the family or a medical emergency may play a spoilsport with your travel arrangements. Thankfully, international travel insurance plans support trip cancellations in such events. You can claim financial assistance to pay penalties and cancellation charges for flights, hotels, etc. 

Make sure that you choose an insurer carefully, especially a company that is reliable and available 24x7 to assist you. 

 5. Property Insurance 

Any building or immovable structure can be insured through property insurance plans. This can be either your residence or commercial space. If any damage befalls such a property, you can claim financial assistance from the insurance provider. Keep in mind that such a plan also financially safeguards the content inside the property. 

Types of Property Insurance in India 

Here are some types of property insurance policies available in India: 

• Home Insurance - With such a policy, you remain free from all financial liabilities that may arise from damage to your home or contents inside due to fires, burglaries, storms, earthquakes, explosions, and other events. 
• Shop Insurance - If you own a shop, which acts as a source of income for you, it is integral to protect yourself from financial liability arising from the same. Whether the liability occurs due to natural calamities or due to accidents, with these plans, you can immediately undertake repairs to the shop. 
• Office Insurance - Another type of property insurance policy, office insurance ensures that the office building and all the equipment inside are significantly protected in the event of unforeseen events. Generally, office spaces include expensive equipment, such as computers, servers, and much more. Thus, availing of these plans is essential. 
• Building Insurance - If you own a complete building, opting for home insurance may not be sufficient. Instead, you can purchase building insurance to cover the entire premises. 

Benefits of Property Insurance 

If you still think that property cover is not one of the types of insurance plans you need to avail, take a look at some of the advantages from the same. 

• Protection against Fires - While the insurance policy cannot prevent fires, it can prevent financial liabilities from such an event. 
• Burglaries - If your property exists in an area prone to theft and burglaries, such a policy is vital to ensure financial security. 
• Floods - In certain parts of India, floods are common. These floods can ravage your property leading to substantial losses. Property insurance also protects against such events. 
• Natural Calamities - The plan also offers financial aid against damage arising from earthquakes, storms, and more. 

Rebuilding or renovation of a property is immensely expensive. Thus, property insurance policies are the best option to ensure long-term financial health. 

 6. Mobile Insurance 

Owing to the rising price of mobile phones and their several applications today, it has become imperative to ensure the device. Mobile insurance allows you to reclaim money that you spend on repairing your phone in the event of accidental damage. Further, you can also claim the same in case of phone theft, making it easier to replace the handset with a new phone. 

Benefits of Mobile Insurance 

Mobile insurance policies are extremely beneficial, especially for those who own a premium smartphone. 

• Comprehensive protection for new devices - The value of phones tends to decline with time. Thus, when the handset is new, phone insurance can help safeguard its significant value. 
• Coverage against Damage to Screen - If you accidentally damage the smartphone screen, which is one of the most important parts of such devices, your insurance plan will pay for the repair expenses. 
• Theft or Robbery of Smartphone - Nothing is worse than buying your dream smartphone and losing it due to theft or burglary. Well, phone insurance will help you afford a replacement handset if such an unfortunate thing happens.

Some insurers may not allow you to buy insurance for the smartphone after a month or two passes from the purchase of the handset. 

 7. Cycle Insurance 

Bicycles are valuable properties in India as some people rely on these vehicles for their daily commute. A cycle insurance policy ensures that you have access to necessary funds should your bicycle undergo accidental damage or theft. It saves your out-of-pocket expenses, while also ensuring immediate repairs to the vehicle. 

 Benefits of Cycle Insurance 

The advantages of availing of such an insurance policy are: 

• Worldwide Coverage - Depending on the insurance provider, cycle insurance policies provide financial assistance regardless of where your bicycle undergoes damage. Even if you meet with a cycling accident in a different country, such a plan will offer aid. 
• Protection against Fires and Riots - If your bicycle sustains damage due to accidental fires and/or rioting, insurance policies will provide the necessary financial assistance to repair or undo the damage. 
• Accidental Death Benefit - If you pass away due to bicycle accidents, the insurance policy for the cycle would offer a lump-sum payout to your surviving family members. 

Regardless of your cycle’s price, opting for insurance can reduce your financial liabilities significantly. 

 8. Bite-Size Insurance 

Bite-judge protection procedures concern perfume security plans that underrate your economic burden for a very restricted reign, mainly until a period. These protection plans admit you to insulate your property against distinguishing damage or dangers. Instance, particular bite-judge security can offer incidental cover of Rs. 1 Lakh for a period.

You can select this procedure when you contemplate you maybe specifically exposed to unexpected harms. Another instance is security show support for particular afflictions. Instance, if your extent is dependent on something water-carried afflictions, in the way that cholera, you can pick a tactics that covers cholera situation and so forth mixed costs for excellent-old age ending.

Benefits of Bite-sized Insurance 

The basic benefit of bite-height protection tactics is that it admits you to avail economic guardianship at very restricted prices.

The premiums are so reduced that it scarcely form some affect your overall weekly payments. Distinguished, the total safeguarded is important.