What is Insurance

What is Insurance?

An insurance is financial security against future risks like medical emergencies, injury, disability or death due to accidents, sudden death, business losses, vehicle damage due to accidents, loss of property, etc.

Why do We Need Insurance?

Having insurance will help in unforeseen circumstances such as:

Insurance is a financial backup at the time of an emergency. If you have an insurance policy, you will not have to use up your hard-earned savings. The insured amount will help pay for the emergencies.

Quick Tip

Not all policies promise a money-back after maturity. Read the terms and conditions carefully while choosing a policy.

Points to Remember

We need insurance because it gives:

Financial security to our families
Tax benefits
Loan benefits
Investment options
Lump-sum amount after end of Term

What is an Insurance Policy?

An Insurance Policy is a legal contract between you (Policyholder/ buyer) and the Insurance Company.

What does the insurance policy include?

This is what insurance policies include:

What is an Insurance Claim?

The Terms and Conditions in the Insurance Policy will tell you how much money you can get in what scenario. When one of these scenarios take place, (death, disability, etc) you can make a Claim and ask the Insurance Company for money.

Quick Tip

Always read the Terms and Conditions carefully before buying insurance.

Points to Remember

Here’s a quick summary of all that we know so far about insurance.

An Insurance Policy is a legal contract between you (called the Policyholder) and the Insurance Company.
The Insurance Policy will have terms and conditions, which will tell you how much money you can get in what scenario.
When one of these scenarios takes place (like death, disability, etc), you can make a Reimbursement Claim and ask the Insurance Company for money.
A Reimbursement Claim is your request to the Insurance Company asking for payment according to the Terms of the Insurance Policy.

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