Insurance(s) Scheme – Type of Insurance | Benefits

This is an important article for Insurance(s) Scheme – Types of Insurance, Features & Benefits. If you want to buy insurance read carefully all detail. Loan Offeron – Car, Bike, Personal Loan, Home Loan, Business Loan

What Is Insurance(s)?

Insurance is one kind of policy, where an individual or entity receives financial protection or compensation against losses from an insurance company. The company creates risks for clients to make payments more affordable for insurers.

Insurance policies are used to defend against the risk of financial loss, which may result in damage to his property or liability for loss or injury to a third party.

Insurance(s) Scheme - Types of Insurance, Features & Benefits

How Insurance(s) Works?

There are different types of insurance policies available. Any person or business can find an insurance company to secure their future with financial help. The most common types of personal insurance policies are Car, Health, and life. 

Businesses need a special type of insurance policy that insures against certain types of risks faced by certain businesses.

For example, A Biker who wants to get money when his bike is damaged, in that case, Biker needs to pay some amount of money to the insurance company for some selected year. If the damage of the Bike meets the Car Insurance policy of the company. The company will pay the repairing cost. 

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Types of Insurance(s)

In general, there are 8 types of insurance plans, Which are:

1 Life insurance:
2 Health insurance:
3 Motor or Vehicle insurance
4 Travel insurance
5 Property insurance:
6 Bicycle insurance
7 Bite-size insurance
8 Mobile insurance


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Life insurance(s)

Life insurance refers to a policy or cover through which the policyholder can ensure the financial independence of his or her family members after death. Suppose you are the only earning member of your family, supporting your wife and children.


Health insurance(s)

Health insurance refers to a type of general insurance, which provides financial assistance to policyholders when they are admitted to hospitals for high cost-effective treatment. 

In addition, some health insurance plans also cover the cost of home treatment, even after discharge.

Motor or Vehicle insurance(s)

Vehicle insurance policies provide financial assistance in the event of accidents involving your car or bike.

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Basically, there are 3 categories of Vehicle Insurance plans.

  • 1 Two-wheeler or Bike Insurance
    2 Car Insurance
    3 Commercial Vehicle Insurance

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Travel insurance(s)

When talking about different types of insurance policies, be sure to learn more about travel insurance plans. Such a policy ensures the financial security of a traveler while traveling. Therefore, compared to other insurance policies, travel insurance is a short-term cover.

Depending on your chosen provider, travel insurance can provide financial assistance at different times, such as in case of loss of luggage, cancellation of travel, and much more.


Basically, there are 3 types of travel insurance plans available in most insurance companies.

1 Domestic Travel Insurance
2 Home Holiday Insurance
3 International Travel Insurance


Property insurance(s)

Property of any building or immovable structure can be insured through the insurance plan, which is called Property Insurance Plan. This could be your residence or commercial space. If there is any damage to such property, you can claim financial assistance from the insurer. Keep in mind that such a plan financially protects the contents of the property.

Bicycle insurance(s)

Bicycles are a valuable asset in India, especially for non-polluted environments,  because some people rely on their vehicles for daily commute. A bicycle insurance policy ensures that you have access to the funds you need in case your bicycle is accidentally damaged or stolen. This saves costs out of your pocket and ensures the immediate repair of the car.


Bite-size insurance(s)

Bite-sized insurance policies refer to sachet insurance plans that reduce your financial liability for a very limited period of time, usually up to one year. These insurance plans allow you to protect your finances against certain losses or threats.



Mobile insurance(s)

Due to the rising cost of mobile phones and their various applications, ensuring the device has become essential. Mobile insurance allows you to recover money spent on repairing your phone in the event of an accident.


You can notice, In Flipkart when you want to order a Mobile there is an extra Complete Mobile Protection for 1 year. It is called Mobile Phone Insurance.


In addition, you can make the same claim in case of phone theft, so that it is easy to replace the handset with a new phone.


Insurance features & Benefits


Insurers get tax benefits for paying premiums depending on the type of insurance product. For example, premiums paid for a life insurance plan qualify for a tax deduction under Section 80C of the Income Tax Act.

Provides peace of mind

Insurance provides a sense of security by covering the uncertainties of Business and People’s life. Life insurance gives you peace of mind that your family’s financial stability will remain intact even if you are not around. Having health insurance gives you a sense of security that you don’t have to empty all your savings in a medical emergency.


Promotes economic growth

Since insurance funds are invested in various projects such as water supply, electricity, and roads, it contributes to the overall economic growth of the country. Insurance contributes to economic growth in many other ways such as getting foreign direct investment, paying taxes in the capital market.


Distribution of risk

Insurance risks spread to different individuals and organizations instead of focusing on just one.

Inculcates savings habit

There are many life insurance products that bring security benefits including investment. Such products create the habit of regular storage among individuals. Plans like endowment insurance plans help achieve long-term financial goals. 


Accident benefit

This is usually an add-on cover over a basic policy and pays an additional sum assured to the beneficiary in case of death due to an accident. Since accidental death is sudden and unforeseen, the family could be faced with some financial crisis, that is why insurance may be of little help for them.


Why do I buy Insurance? 

Buying an insurance policy is very important because it ensures that you are financially protected from any kind of accidental problems in life. This is why Insurance is a very important part of the financial planning of each and every people. A general insurance company offers insurance policies to secure health, travel, vehicle, and building. 



I hope you understand about Insurance, How much Insurance is important for our Life from Car to Health Insurance.

Now, I’d like to know from you:
Do you think to buy an Insurance Policy?
Or, Already buy an Insurance Policy?
If, Yes.
Which is this, Life, Health or Car, anything.
Let me know in the comment Right Now.


Reference:  Insurance 

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