What is insurance?
Insurance is a contract where an individual or an entity is promised a financial protection or reimbursement against losses from an insurance company.
What are the types of insurance policies in India?
Insurance policies can be classified into two broad categories which are general insurance and life insurance policies.
What is a life insurance policy?
It is a form of insurance contract where the insured pays premium to the insurer for obtaining a certain sum of money from the insurance company either after a time period or for his family in case of unexpected death.
Who is a policyholder?
A policyholder is the one who purchases the policy and pays the premium for the same.
What is meant by life assured in case of life insurance?
Life assured is the person for whom the life insurance plan is purchased so as to cover the risk of untimely death.
Who is an insurance broker?
A broker is an independent person or a firm which is registered under the IRDA Act and works as your agent by giving advice on insurance and not as that of the insurance company. They are licensed to give you policy from any insurance company.
What is meant by sum insured?
Sum insured is the maximum amount which the insurance company promises to pay in case of loss or damage of the goods or life insured. It is this amount which helps in calculating premiums.
What does premium mean?
Premium is the amount which the insured is required to pay to the insurance company in regular installments or as agreed in order to cover health, life, auto or home from a damage. Failure to pay the premium leads to cancellation of the policy.
What does policy tenure means?
Policy tenure is the time duration for which the insurance policy provides coverage. The policy tenure decides that for how long the company will provide the risk coverage.
Does the credit score of the insured affects premium?
Yes, the credit score of the person buying the insurance policy affects the amount of premium to be paid by them.
What all are covered under a home insurance policy?
A home insurance provides protection against both natural and man-made perils which includes: fire, flood, lightning, cyclone, earthquake, riots, landslide, bursting of pipes, theft etc.
Who is a nominee?
Nominee is the legal heir or the person nominated by the life insurance policy holder who is entitled to receive the death benefit in case of unexpected death of the policyholder or the insured.
What is meant by maturity age?
Maturity age is the age of the life assured after the attainment of which the life insurance policy comes to an end. For example, if you buy a life insurance policy with a maturity age of 30 years then once you become 30 years old the policy will come to an end.
What is health insurance?
Health insurance is a kind of insurance policy that covers the cost of medical and surgical expenses incurred by the insured.
How is health insurance different from life insurance?
Life insurance is the insurance which covers the risk of life and pays the promised sum or sum assured in case of happening of an event like unexpected death of the insured. Whereas, health insurance is the insurance which covers the medical expenses of the insured like medical bills but only up to the amount covered.
What are the tax benefits in case of life insurance policy?
All the premiums paid towards the life insurance policy are eligible for deduction under section 80 C of the Income Tax Act. The benefits paid to the policyholder/ nominee are tax free under Section 10 (10D) of the Income Tax Act.
What is meant by travel insurance?
Travel insurance is an insurance policy that covers the insured traveler from any unforeseen situation during his/her travel. It includes medical covers, travel related covers, personal liability, loss of passport etc.
What is meant by No Claim Bonus?
No Claim Bonus is the discount on the base premium if no claim on the health policy is made during the term of the policy.
What is meant by riders?
A rider is a provision that adds benefits to or amends the terms of the basic insurance policy. There is an additional cost charged by the insurance company in case the insured purchases a rider.