Hi Friends,
Due to the numerous insurance companies today, there is a lot of confusion about the main insurance products that are available in the markets today. Different companies have different names for the same product. Hence the customer sometimes gets confused.
The simplest definition of Insurance is:- It is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event.
The insurance market is divided into two categories- life insurance and non-life insurance. Life insurance covers risks related to human lives. All other risks are covered under non life insurance or general insurance.
I searched on google as to the different insurance products that are available in the markets today. For a lay man, it is all the more confusing. Hence I am listing down the main insurance products that are covered under Life Insurance as well as the different sub-categories under which non life insurance can be divided into.
Non life insurance market can be subdivided into the following:-
1) Fire Insurance 2) Marine Insurance 3) Miscellaneous
Miscellaneous includes Motor Insurance, Property Insurance, Liability Insurance, Health Insurance and Travel Insurance.
The main life insurance products are:-
1) Term Insurance Plans
2) Endowment Insurance Plans
3) Whole Life Insurance Plans
4) Pension and Savings Plan
5) Unit Linked Insurance plans(ULIPs)
Hence it is very important to understand what kind of insurance is needed by an individual. Risk appetite, wealth, age, health, marital status, number of dependants, nature of work, etc are some of the different parameters that need to be considered before purchasing a policy.
Your Friend,
Vivek
Due to the numerous insurance companies today, there is a lot of confusion about the main insurance products that are available in the markets today. Different companies have different names for the same product. Hence the customer sometimes gets confused.
The simplest definition of Insurance is:- It is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event.
The insurance market is divided into two categories- life insurance and non-life insurance. Life insurance covers risks related to human lives. All other risks are covered under non life insurance or general insurance.
I searched on google as to the different insurance products that are available in the markets today. For a lay man, it is all the more confusing. Hence I am listing down the main insurance products that are covered under Life Insurance as well as the different sub-categories under which non life insurance can be divided into.
Non life insurance market can be subdivided into the following:-
1) Fire Insurance 2) Marine Insurance 3) Miscellaneous
Miscellaneous includes Motor Insurance, Property Insurance, Liability Insurance, Health Insurance and Travel Insurance.
The main life insurance products are:-
1) Term Insurance Plans
2) Endowment Insurance Plans
3) Whole Life Insurance Plans
4) Pension and Savings Plan
5) Unit Linked Insurance plans(ULIPs)
Hence it is very important to understand what kind of insurance is needed by an individual. Risk appetite, wealth, age, health, marital status, number of dependants, nature of work, etc are some of the different parameters that need to be considered before purchasing a policy.
Your Friend,
Vivek
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