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Insurance Definition

As we are humans, we are very materialistic. We like to buy more expensive luxury items to fulfill our zest and desire, and we also buy expensive cars, properties, shoes, jewelry sets, precious stones, and many more to show off in society.

But there is a continuous fear of losing that thing and the risk of damage to that particular thing. We always want to protect them sometimes, and we feel such insecurity for the persons in our family, even if they are our pets. We also feel the same for them because they are close to our hearts. We want to save them from any mishappening in the future.

To solve this issue, a unique concept of insurance promises to help you during financial loss or when you cannot cope with such a heavy financial loss. At that time, insurance is vital in saving your close ones.

Insurance Definition

Insurance means safeguarding someone or giving someone assurance or a promise that someone will help you in the hour of need, specifically when there is a huge financial loss or costly medical bills.

Nowadays, there are many insurance companies, unlike in the old days when people gave money to the wealthiest person in their society every month. In return, he was bound to help them when they suffered financial loss.

The Idea of Insurance

The readers may be stunned after reading that the idea of insurance was very ancient; this was introduced in the 18th BC (Before Christ); the evidence of this statement can be found in the old, ancient scripts. The king at that time gave various grants to the public, in which they took a small amount of money from the citizens of their kingdom and utilized that money for the betterment of their citizens. Whenever a natural calamity occurs, like floods, drought, and earthquake, the king helps them by giving them money and supporting them. In India, we read about various kings and rulers who usually take some money from citizens and, in return, help the needy; all these lay the foundation for the concept of insurance.

Different Types of Insurance

Nowadays, various types of insurance companies provide this facility to the consumer, and the competition in the insurance sector is much more, and there are primarily five main types of insurance that are listed below as,

  1. Life Insurance: Life insurance is a type of insurance in which the policyholder submits a definite amount of money to an organization or the insurer; in return, the policyholder gets a written promise from the insurer that his family members or the nominee will get that amount that is mentioned in the agreement, in some cases when the policyholder is suffering from a chronic disease or any other case then there are some complications according to the contract. AXA is one of the leading insurance companies with a vast and expanded market of consumers in almost 57 countries.
  2. Health Insurance: Health insurance is a type of insurance in which the insurer gives a written promise in the form of an agreement in which this is clearly stated that the consumer or the policyholder will give a fixed amount of money every month to the insurer and in return the insurer is bound to pay the complete or some amount of medical bills of the hospitals as per the terms and the conditions of the agreement. Some famous health policy providers in India are Bharti AXA General Insurance Company Ltd, Tata AIG, AEGON Life, HDFC Ergo Health, ICICI Lombard, Star Health Insurance, Niva Bupa or Max Bupa, and Future Generali.
  3. Fire Insurance: Fire insurance is a type of insurance in which the insurer promises the policyholder that the insurer will help him cope with the financial loss caused by fire. In return, the policyholder must give the insurer a fixed amount of money. Nowadays, almost every company gives fire insurance over their product, but it's a better choice to take fire insurance for your property so that it is easy in the future to cope with the loss or damage that occurred by the fire. Amica, USSA, State Farm, and Allstate are some of the famous Fire insurance companies all around the world.
  4. Marine Insurance: Marine Insurance, as the name indicates that it is a type of insurance that gives protection against the loss caused by water, and this type of insurance is primarily taken for Ships, shipyards, marinas, and offshore floating and installation.
  5. Vehicle Insurance: As the name indicates, this insurance's features is usually taken for insuring or protecting our vehicles against severe accidents and maintenance cost, which is easily recovered by Vehicle insurance.

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