Insurance Important FAQ’s

1. What is insurance?

Insurance is a legal agreement between an individual (the insured) and the insurance company, as a promise to pay the financial coverage for unfortunate incidents such as loss of life, property, house, etc.

• Why do you need insurance?

Having insurance helps you with protecting your family and your other property in case of financial loss. Insurance helps you pay for hospitalization, medical bills, and other medical emergencies. It also encourages savings in terms of paying premiums and helps with achieving your other financial goals.

• What are the different types of insurance?

Insurance is mainly divided into two categories, General Insurance and Life Insurance.

General insurance includes:

1. Health insurance
2. Motor insurance
3. Home insurance
4. Fire insurance
5. Travel insurance

Life Insurance includes:

1. Term life Insurance
2. Whole life insurance
3. Endowment plans
4. Child plans
5. Pension plans

• How to choose the best insurance?

To choose insurance, know your goals/requirements. Select the type of insurance and compare them with other companies. Compare the premium amounts and the benefits you can get from each. Read the ‘Terms and Conditions before choosing the policy.

• How can I pay my premium?

Premiums are the amount an individual or a company has to pay for the insurance policy taken. Different insurance companies provide different plans for the payments of the premium. Premiums are paid in advance and the limit set by IRDA is ₹50,000.

Many companies now offer the payment of premium to be paid online. And depending upon your insurance scheme, you can pay the premium on a monthly, bi-monthly, quarterly, half-yearly, or yearly basis.

• What are the documents required to get a policy?

Different types of documents are needed for different insurance policies. For life insurance policies, the following documents are required.

1. Life insurance form, filled and signed by the insured.
2. Photograph of the insured.
3. Age proof of the insured.
4. Identity proof of the insured.
5. Address proof of the insured.
6. Medical report of the insured, if required, because of the age or sum chosen for the insurance.

Thanks for reading, Always Welcome.