Types of insurance

We all do heard of different types of insurance such as Car insurance, Home insurance, Education insurance, Agriculture insurance, Business insurance and many more.
But basically, in the World “insurance” there are two major type of insurance

1.  Life insurance
2.  General Insurance.

Life Insurance

 Most of us know that term “life insurance”. But what most of us don’t know that how to determine and use life insurance. Well here you can find it with real examples. For now at a glance what exactly life insurance is, Life insurance is a contract (not an Indemnity) between insurer and insured to pay a certain sum of money due to the death of the insured person. The sum of money goes to the Beneficiary person or party that the insured person specifies during the contract but in general it is the family members.

 

 

Essential part of a Life Insurance

1. Premium.
2. Death Benefit.
3. Term or Period of time.
4. Beneficiary.

Why Life Insurance

Very often, Life insurance is intended to have financial security or backup for the family members in case of dependency on any wage earner. If you have someone extremely financially dependent on you then you got no choice but to accept a life insurance plan as early as possible.
Take a look on different types of life insurance plans that suit you most with real example.

General Insurance

General insurance is a contract of indemnity that means risk sharing between two or more parties on some specific ground. For example, Car insurance, Home insurance, flood insurance, Business insurance and so on we look around. We will discus some popular and most important type of general insurance later.