What is insurance? Benefits of Life Insurance

Today we will know what insurance is insurance and the benefits of life insurance.  Today's article is for those of you who want to know about insurance.

We have heard the word insurance a long time ago but we have various questions in our minds about this subject.

Because insurance is an important thing in our life.  So it is natural to want to know about this.

What is insurance?  Benefits of Life Insurance

Bangladesh and trade are expanding in line with other countries of the world.  Along with this, insurance is expanding.

The main reason for the expansion of the insurance business is natural disasters.  Businesses are hit every year by hurricanes, floods, etc.  These natural disasters are destroying businesses.

So let's first know what or who is called insurance.

What is insurance?

What is insurance


As I said earlier, insurance is an English word And insurance means contract. We'll find out what this deal might look like.

Insurance is a contract that will stand by you or help you in times of danger. Suppose you take out insurance of Rs 2 lakh for 2 years.

While taking this insurance, you must sign the contract and pay the premium at the specified time. So that we call installments.

Suppose, you take out crop insurance for 1 year and deposit a certain insurance premium every month.

If there is any damage to your crop due to wild or natural calamity during the one-year insurance period then the insurance company will cover the loss.

Hopefully, now you can easily understand what insurance is or what insurance is called.

How many types of insurance and what is it?

There are many types of insurance. In this case, you can have different types of insurance. However, most people have 8 types of insurance.

 These 8 types of insurance are –

  1. Life Insurance
  2.  Health Insurance
  3.  General Insurance
  4.  Fire Insurance
  5.  Travel Insurance
  6.  Property Insurance
  7.  Accident Insurance
  8.  Building Insurance

Insurance that is not related to our life is called general insurance.

So insurance is basically of two types. Life Insurance and General Insurance. All types of insurance other than life insurance are general insurance.

 (1) What is life insurance?

Life insurance is insurance on your life. When you buy insurance, you are bound by a contract.

In that contract, you need to confirm what type of insurance you want. If you have life insurance then if there is any loss in your life before the specified period the insurance company will pay the entire loss amount.

Again, if you die within the specified period, all the insurance money will go to your heirs.

 (2) What is General Insurance

All insurance except life insurance is called general insurance. The insurance that is contracted to save crops against natural calamities is also called general insurance.

General insurance is discussed in detail below.

What is health insurance?

At present we suddenly get sick. It means that the number of human diseases is increasing day by day. Hence the demand for health insurance is increasing.

You may not know much about health insurance. Health insurance means that if you sign a contract with a health insurance company and pay their premium, you are guaranteed.

If you fall ill during your contracted period, all your expenses will be covered by the insurance company. This is health insurance.

What is fire insurance?

Suppose you have a large manufacturing factory. Many times, due to various accidents, fire breaks out in the factory.

A fire in the factory means that your entire factory will be burnt to ashes. In this case, you will lose lakhs of money and you will become a fakir.

Now if you take out fire insurance in the name of your factory and pay their premium every month then the insurance company will bear the amount of loss if there is a fire in your factory.

Hopefully, you can easily understand what fire insurance is and why.

Travel Insurance

We all love to travel. However, those who like to travel to different countries outside the country can sometimes experience a lot of damage unexpectedly.

In this case, travel insurance covers any damage while traveling in all countries. Travel insurance policies cover common expenses like loss of luggage, theft, trip cancellation, medical problems, and plane hijacking.

Although this policy does not guarantee security, it serves as a safeguard against unexpected erosion losses from uncertain events.

Travel insurance is now mandatory for tourists in many countries. Most of your foreign travel policies offer 24-hour emergency assistance.

Property insurance

Property insurance backs up an individual or organization against man-made or natural disasters on their property.

Protects your property like home, business, factory machinery, shop, etc. against risks like fire, flood, earthquake, theft, and explosion.

There is a lot of demand for this property insurance. Property insurance is first-party coverage, meaning it is a contract between the first party and the second party.

In Ethan, the first party is the insured and the second party is the insurance company. Assets are returned to the insurer if there is any damage to your property as per their policy.

Accident insurance

If you have an accident insurance policy covers bodily injury or death. In case of minor physical injuries, the insurance company will bear the entire cost.

Moreover, if you die in an accident, the insurance company will help your family financially.

The main reason to recommend buying an accident policy is that the insurance company will cover all incidents from minor injuries to death.

Moreover, it will provide financial security to your family. If you want, you can get accident insurance online.

Home Insurance

Home is one of our most valuable assets. So you can take home insurance or home insurance to keep your home safe and secure.

Home insurance provides financial protection against natural disasters and other catastrophic losses. This home policy covers damage caused by both man-made and natural calamities.

Home insurance is a contract between the homeowner and the insurance company. Insurance companies basically recommend a certain amount of money against unexpected losses.

The insurance company will cover the loss in the policy due to man-made and natural calamities. In this case, you can stay stress-free as your home is protected.

Benefits of Life Insurance

One of the advantages of life insurance is that you get special help in case of an emergency. As a result, you can be prepared in advance for any unexpected event.

Some of the special benefits of life insurance are –

  • Your family will be protected from financial loss after death.
  • Not only will you get financial support from the insurance company but also get all the investment money back.
  • If you need money in an emergency, you can take a loan from the insurance company.
  • One of the benefits of life insurance is that it provides financial security to your family.

Conclusion

From today's discussion, we know what is insurance, what are the types of insurance, and the benefits of life insurance.

Hopefully, you have an easy understanding of what insurance is. Also, if you have any questions or suggestions, please comment and share if you like.

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