Insurance and its Types

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What is Insurance?

Insurance is in assurance of what you will be getting during unwanted situations. Insurance by practice has started during early centuries. Traders use to pool in their money and make a corpus and when something bad happens in trade, they will be able to get able support from that corpus. Thus the Insurance has born and it was developed into current stature by England from 16^th century.

Types of Insurance companies

Insurance company is broadly classified into two main types Life Insurance and Non life Insurance companies. All further types are brought under these categories.

Non life Insurance

Motor Insurance, Travel Insurance, Group insurance, Transit insurance etc can be grouped under this general Insurance. Risk and peril are analyzed before giving out this insurance.

Life Insurance

Here the life of a person is insured. Term policy, whole life policy, endowment policy, health insurance etc are brought under this category. Insurance is provided based on the nature of his work.

IRDA

Insurance Regulatory and development authority was formed in 2000, to regulate the Indian Insurance industry. LIC was the monopoly till 2001 and private insurance company was allowed to operate from 2001. After the allowance of private companies the growth of insurance among the people had grown significantly. Recently the FDI limit has been increased to 49% which will increase in the growth of foreign insurers in Indian market. The under penetrated Indian insurance market is a added advantage for them.

The introduction of online term policy has lowered the premium to great extent and people are becoming aware of the need to take insurance with high sum assured.

Is Insurance really needed?

We are living in the world of uncertainties, though we may not know about tomorrow but reducing the risk of tomorrow may bring in stress free future and focus on our growth and asset accumulation. Term policy, health insurance policy, critical illness policy and personal accident policy are very much essential insurance policies before choosing any ULIP or endowment policy.

Get insured to protect your dependent life.