A policy is a contract with an insurance company. In exchange for premiums (payments), the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries in the event of the insured's death.
Typically, Life Insurance is chosen based on the needs and goals of the owner.
It is a policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance.
Typically, Non-Life Insurance is chosen for the replacement for an eventual risk on the asset he/she holds.
insurance companies that offer wide range of insurance options and an insurance purchaser can select as per own convenience and preference.
Several insurances provide comprehensive coverage with affordable premiums. Premiums are periodical payment and different insurers offer diverse premium options.The periodical insurance premiums are calculated according to the total insurance amount.
Mainly insurance is used as an effective tool of risk management as quantified risks of different volumes can be insured.
Types of Insurance
Major types of insurances are as mentioned below:
Types of Insurance Companies
Insurance companies can be categorized into two main divisions which are as follows:
Insurance companies are usually identified as stock companies. Insurance is a device for indemnifying an individual against loss and in the recent past due to natural calamities, few insurance companies have suffered financial setback. Premiums of few insurances have suddenly gone uphill as plenty of insurance providers have become insolvent. While selecting an insurance company, financial strength of the company must be considered as viability of the insurance provider is extremely crucial.