What is an insurance:
The introduction of insurance in simple language is, it is a protection against risks. There are several types of risks like risks to life, health, home, bikes, cars and other related things.
The risks covered for life is known as life insurance, and the remaining risks are covered under general insurance.
The protection against risks is given by the insurance company. This protection is known as insurance coverage.
The person who is insured under the policy is known as the policyholder.
The policyholder has to pay a certain sum of money called premium at a regular interval of time which could be annually, half yearly, quarterly or even monthly till the policy term lasts.
In case of life insurance only
If the policyholder could not survive the policy term, then the beneficiary will get the sum assured under the policy.
In case the policyholder survives the policy term, then a maturity amount is given to the policyholder. This maturity amount is equal to the total amount paid as premium along with the applicable bonus.
In case of general insurance:
No maturity benefit is given, in case the policy term is over, and no claims are made.
They are purely insurance cover.
The Life insurance is a long duration policy, whereas General insurance is for a shorter duration and it has to be renewed every time, the policy term gets over.
Information available on insurance:
The insurance was introduced in India way back in 1818. Since then it is rapidly growing day by day. The reason being, a growing number of companies are operating in public and private sector and they are creating awareness amongst the common masses through advertisements, their insurance agents as well as through their websites which are full of insurance related articles.
After going through these articles, anyone can make out the dual benefits associated with the insurance, that is -insurance plus investment, as it has option to invest money in the market for better returns on maturity .
These insurance articles convince the readers in a simple manner to opt for a particular type of insurance, for example the necessity for a travel insurance is well explained by the fact that the medical and hospitalization charges are very expensive in a foreign land, so having a travel insurance while travelling abroad is a good option. Similarly, the health insurance can provide cashless hospitalization facility and can bear the expensive cost of treatment even for critical illness like cancer.
Why do people look for insurance reference materials?
If a person wants to choose a motor insurance company, he would like to go through the websites of different companies and look for the available data like claim settlement ratio, the coverage versus the premium as well as the reviews given by the customers. So, insurance reference materials are a good source of information so are the Insurance articles.