Meaning of Insurance | Types of insurance | Top Insurance companies in India.

Meaning of Insurance | Types of insurance | Top

Insurance companies in India.

 

Security is very important for everything whether it is your tangible asset or your life, securing them is very important as the future is very uncertain and one of the biggest example of that uncertainty is Covid -19.

 

Covid has shown us that the future can be very uncertain and things always don’t go according to the plan or in a regular flow. Challenges can come from time to time in our lives. We cannot predict the future but what we can do is that we can prepare and plan for any kind of uncertain event.

 

So, how can we prepare or plan for these types of uncertain events  ?

If we think logically almost every problem in this world can be resolved or survived with the help of one tool and that is ‘money’. 

 

So the best value we can get against anything is money. In case of any personal loss like a loss of a life, money will never reimburse the same amount of value but it can help them financially during that hard phase of life.

 

Now as we know the best value or the security we can get against anything is money. 

 

That’s why there are many companies in the market who provide this service. 

 

These companies are called Insurance companies. 

Meaning of insurance 

 

Insurance is a written contract under which the insurance company gives this assurity that in case of loss or damage of the insured thing or a human being during a particular period of time will get compensated by them in the form of money.

 

*The time frame and the amount of money which has to be compensated in case of loss or damage depends upon the terms and conditions of the Insurance.

 

Let’s understand the concept of insurance with an example – 

 

Suppose you have taken a Term Insurance policy by LIC and the sum assured amount in case of death is 20 lakh rupees then in case of death – 

 

The person will immediately get the 20 lakh rupees plus the additional benefits offered by the company in the case of death.

Types of Insurance

 

Now the basic structure for every type of insurance is almost similar but still there are many differences that’s why there are different insurance for different types of things.

 

Insurance has been categorised into 3 different types –

1- Life Insurance 

2- Health Insurance 

3- General Insurance 

 

All three of them have different rules and regulations and are designed for a specific thing.

 

Life Insurance 

Life insurance as it defines itself with its name it is designed for the living beings. Under this there are many subcategories and each of them comes with a specific benefit or feature of its own.

 

Subcategories of life insurance –

 

1- Endowment Plan

2- Term Insurance

3- Whole life plan.

4- Pension Plan.

5- Money back plan. 

 

Life insurance is best for investment purposes as in many insurance policies you get the huge rate of return on maturity.

 

Health Insurance 

Health insurance policies are designed for living beings too. Under this the person gets the coverage for any kind of medical emergency i.e. if he or she ever gets hospitalised because of any issue then the person will get the coverage according to the sum assured amount of the insurance policy. 

 

Lets understand this with an example – 

If Mr.Satish has taken health insurance with a sum assured amount of rs.5 lakhs and he gets hospitalised because of any medical issue then he will get the coverage of upto rs.5 lakhs from the insurance company on the medical bill of hospitalisation.

 

General Insurance

General Insurance is designed for non-living beings. It is generally done for cargo,automobiles,shipments,home,offices etc. It provides coverage in case of damage of the insured thing. 

Top Insurance companies in India.

 

In India there are many insurance companies working who are top in the worldwide market but whenever we are talking about the indian market the best one is the Life insurance corporation (LIC).

 

Why LIC ?

We personally recommend the LIC not because they are our business incubator but because of the security and the rate of return on your deposit you get.

 

The money invested in LIC is very secure as it’s a government’s company and the main motive of LIC is to serve the customer not to earn the profit whereas the primary objective of any private company is to earn the profit.

 

Claim settlement ratio (according to IRDA’s report)  – 98% approx.

 

Now after the LIC the top insurance companies are –

 

Max Bupa 

Covers over 9k hospitals all over the india and offers the fastest claim settlement time period of only half an hour and no physical documentation and interaction is required all of the procedure is done online.

 

HDFC

HDFC offers the best settlement ratio of 99% (according to IRDA’s report) which is very rare in case of private companies and provides a good coverage amount too.

 

Power Tip 

If you are looking to invest in life insurance just go with the LIC. If you are looking to invest in health insurance then go with Max Bupa and the term plan of HDFC is best among all of them.

 

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