What do you mean by insurance?
Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. There many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance.

Types of Insurance

1. Life Insurance

Life Insurance refers to a policy or cover whereby the policyholder can ensure financial freedom for his/her family members after death. Suppose you are the sole earning member in your family, supporting your spouse and children.
In such an event, your death would financially devastate the whole family. Life insurance policies ensure that such a thing does not happen by providing financial assistance to your family in the event of your passing.

Types of Life Insurance Policies

• Term Plan – Pure Risk cover Policy
• Endowment Plan – Insurance + Savings
• Unit Linked Insurance Plans or ULIPs – Insurance + Investment(Invest in Equity & debt)
• Whole Life Insurance – Coverage for a lifetime
• Child’s Plan – to create a corpus for child’s education, marriage,etc
• Money-Back – Insurance cover with period returns
• Retirement Plan - financial cushion aiding financial independence post retirement

Benefits of Life Insurance
If you possess a life insurance plan, you can enjoy the following advantages from the policy.

• Tax Benefits - , under Section 80(C) and 10(10D) of the Income Tax Act.
• Encourages Saving Habit - Buying such an insurance policy promotes the habit of saving money.
• Secures Family’s Financial Future - ensures your family’s financial independence is maintained even after your demise.
• Helps Plan Your Retirement - Certain life insurance policies also act as investment options. For instance, pension plans offer a lump-sum payout as soon as you retire, helping you to fund your retirement.

Now that you know all about life insurance policies read on to understand the various facets of other general insurance policies.

2. Health Insurance

Health insurance refers to a type of general insurance, which provides financial assistance to policyholders when they are admitted to hospitals for treatment. Additionally, some plans also cover the cost of treatment undertaken at home, prior to a hospitalisation or after discharge from the same.
With the rising medical inflation in India, buying health insurance has become a necessity. However, before proceeding with your purchase, consider the various types of health insurance plans available in India.

Types of Health Insurance policies

There are eight main types of health insurance policies available in India. They are:

• Individual Health Insurance - These are healthcare plans that offer medical cover to just one policyholder.
• Family Floater Insurance - These policies allow you to avail health insurance for your entire family without needing to buy separate plans for each member. Generally, husband, wife and two of their children are allowed health cover under one such family floater policy.
• Critical Illness Cover - These are specialised health plans that provide extensive financial assistance when the policyholder is diagnosed with specific, chronic illnesses. These plans provide a lump-sum payout after such a diagnosis, unlike typical health insurance policies.
• Senior Citizen Health Insurance - As the name suggests, these policies specifically cater to individuals aged 60 years and beyond.
• Group Health Insurance - Such policies are generally offered to employees of an organisation or company. They are designed in such a way that older beneficiaries can be removed, and fresh beneficiaries can be added, as per the company’s employee retention capability.
• Maternity Health Insurance - These policies cover medical expenses during pre-natal, post-natal and delivery stages. It covers both the mother as well as her newborn.
• Personal Accident Insurance - These medical insurance policies only cover financial liability from injuries, disability or death arising due to accidents.
• Preventive Healthcare Plan - Such policies cover the cost of treatment concerned with preventing a severe disease or condition.

Benefits of Health Insurance
After assessing the various kinds of health insurance available, you must be wondering why availing such a plan is essential for you and your loved ones. Look at the reasons listed below to understand why.

• Medical Cover - The primary benefit of such insurance is that it offers financial coverage against medical expenditure.
• Cashless Claim - If you seek treatment at one of the hospitals that have tie-ups with your insurance provider, you can avail cashless claim benefit. This feature ensures that all medical bills are directly settled between your insurer and hospital.
• Tax Benefits - Those who pay health insurance premiums can enjoy income tax benefits. Under Section 80D of the Income Tax Act one can avail a tax benefit of up to Rs.1 Lakh on the premium payment of their health insurance policies.

Factors to Consider Before Buying Health Insurance Plans

There are some factors that need to be considered closely to make the right decision:

• Caps and Sub-limits. Like for ( Room Rent -1% , ICU – 2%) cataract -15000,etc
• Plan offered –(Free medical check up /OPD bill claim / Health Maintenance Benefits)
• Life-Long Renewability
• Network Hospitals
• Co payment – (ie) 80% give 20% pay from our pocket
• In-house Claim Settlement Team
• Restore Benefit – ( unlimited/ 100%)
• No claim bonus – (5% 0r 10% 0r 50%) – maximum upto 100% or 200%
• Waiting Period ( normal illness / pre- existing Disease / Specific Disease)

Which Health Insurance Policy Should You Buy?
An ideal health insurance plan for you is the one that offers you the desired coverage, here we have compiled a few health insurance plans based on some of your needs: