Insurance Components:

• Premium: This is the financial consideration which makes the insurance agreement a legally binding contract.
• Policy Limit: The policy limit applies to health and general insurance policies where compensation depends on the amount of loss. The policy may limit the maximum compensation for certain types of losses.
• Deductible: Deductible applies to general insurance and health insurance policies. A deductible is the maximum loss you will bear out of your pocket. The insurer will start paying only when your losses (or expenses) exceed the deductible limit.

Types of Insurance

• Life Insurance
• General Insurance

Types of Life Insurance

1. Term Life Insurance

Term insurance is the purest and most affordable plan among all life insurance plans. Term life insurance only offers the risk cover. Thus, the premium cost is significantly low for a large sum assured. With a nominal premium amount, you get adequate life cover for your family. If anything happens to you, your family can still sustain their life and meet life goals.

2. Endowment Plans

Endowment plans are one of the best long-term safe investment plans. With tax-deductible investment and exempt maturity value, the plan saves your wealth from tax and inflation. These plans also offer financial coverage to you against life's uncertainties. If you survive the policy term, you receive a lump sum amount. If something happens to you during the policy tenure, the insurance company pays the nominee the sum assured.

3. Whole Life Insurance

Whole life insurance provides you coverage for the entire life and not just for specific years. Whole life cover can continue until you reach 100 years of age. This means that your nominees will receive a benefit amount even in the case of your natural demise. It also has a savings component to help you accumulate wealth during the policy term. Whole life insurance is a great way to leave a legacy for your next generations.

4. Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plans or ULIPs are life insurance plans which allocate units against your invested money. You can invest in a mix of debt and equity funds with ULIPs and avail all the tax benefits. These plans offer you double benefits - investment options and insurance benefits. A part of your premium goes towards market-linked equity and debt instruments. The balance goes towards providing you with life cover during the policy tenure.

5. Pension or Annuity Plans

Pension or annuity plans are an essential part of your post-retirement life. These plans help you draw a regular income, i.e., annuity, out of your large retirement corpus. These insurance plans also provide a cushion for your post-retirement life. You can invest in pension plans individually or jointly with your spouse. With joint pension plans, your spouse can be assured of a pension even after your demise.

6. Child Insurance Plans

Child insurance plans are endowment life insurance or ULIP plans with special features to support your child’s future. You can secure your child's important life goals like education and marriage by investing in child plans. Child insurance plans come with insurance and savings benefits. If something happens to you before the goals, the insurance takes care of your child's goals. If you continue to live, the savings will grow to fulfil your dreams.

Types of Non-Life/General Insurance Policies

Non-life insurance plans are those which cover any event except the loss of life. These insurance policies are useful for safeguarding your financial interests in an asset, your health, and even business inventory. Below are the different types of non-life insurance plans available to you:

1. Health Insurance

Health insurance plans cover your emergency medical expenses. Health insurance plans either reimburse or pay the treatment cost for any illness or injury.You can avail of the following types of health insurance plans, depending on your protection needs:

1. Individual Health Insurance
2. Group Health Insurance
3. Family Floater Health Insurance
4. Critical Illness Health Insurance
5. Senior Citizen Health Cover
6. Personal Accident Insurance
7. Maternity Insurance

2. Motor Insurance

Motor insurance offers your financial assistance in case your vehicle is involved in an accident. It is mandatory to have motor insurance in India for your bike, car, and commercial vehicle .You can avail of different types of  motor insurance as per your vehicle and needs:

1. Two Wheeler Insurance
2. Car Insurance
3. Commercial Insurance
4. Fleet Insurance

3. Home Insurance

Home insurance provides you coverage for the unforeseen damage or loss caused to the house structure and its content. It provides coverage against human and natural calamities like fire, earthquake, robbery, burglaries, etc.

Different types of home insurance policies include:

1. Home Structure/Building Insurance
2. Public Liability Coverage
3. Standard Fire and Special Perils Policy
4. Personal Accident
5. Burglary and Theft Insurance
6. Contents Insurance
7. Tenants’ Insurance
8. Landlords’ insurance

4. Fire Insurance

Fire insurance compensates you for losses incurred due to accidental fire breakout. Under this insurance plan, the insured (individual or company) receives a significant part of the damages to the property.

5. Freight Insurance

Freight insurance is a policy put in place by a third party that ensures the partial or total value of your cargo. These policies cover goods and merchandise against loss or damage during transit from one location to another.

6. Travel Insurance

Travel insurance provides you financial protection when you are travelling in India or abroad. It provides coverage that takes care of any issues you may face during a trip like flight cancellation, loss of passport, loss of baggage, or medical emergencies.

1. Domestic Travel Insurance
2. International Travel Insurance
3. Individual Travel Insurance
4. Group Travel Insurance
5. Student Travel Insurance
6. Senior Citizen Travel Insurance
7. Family Travel Insurance

 7. Asset Insurance

Asset insurance plans protect your assets like cars, electronic gadgets, jewellery, etc. Asset insurance generally protects you against theft or damage to a valuable asset.