About insurance policy
Insurance means protection from Financial loss
- The insurer ( insurance company) and the insured ( customers ) get a legal agreement for the insurance, which is called an insurance policy.
- The insurance policy has details about the terms and conditions under which the insurance can be claimed by the insured person.
- The insured person has to pay the premium to the company. An insurance premium will be more or less expensive and cost can vary depending on the type of coverage you are looking for, as well as the risk.
- The insurance company takes this risk of providing a high cover for a small premium because very few insured people actually end up claiming the insurance.
- There are 24 insurance companies in India… Out of which 1 is Govt company ( LIC ) and remaining 23 are Private companies
There are 4 Types Of Insurance Everyone Needs
1. LIFE INSURANCE
- Term life insurance
- Whole life insurance
- Universal life insurance
2. PROPERTY INSURANCE:
3. HEALTH INSURANCE:
4. VEHICLE INSURANCE:
- Replacement cost
- Actual cash value and
- Extended replacement costs.
- Replacement cost :
It covers the cost of repairing or replacing property at the same or equal value. The coverage is based on replacement cost values rather than the cash value of items.
- Actual cash value :
It covers the owner or renter the replacement cost minus depreciation. If the destroyed item is 10 years old, you get the value of a 10-year-old item, not a new one.
- Extended replacement costs :
It will pay more than the coverage limit if the costs for construction have gone up; however, this usually won’t exceed 25% of the limit. When you buy insurance, the limit is the maximum amount of benefit the insurance company will pay for a given situation or occurrence.