INSURANCE

Insurance is a financial arrangement where an individual or entity

(the insured) pays a premium to an insurance company in
exchange for protection or coverage against specific risks.

These risks can include things like property damage, liability,

illness, or death. In the event that the insured experiences a
covered loss, the insurance company provides compensation or
benefits according to the terms outlined in the insurance policy.
GENERAL TERMS RELATED TO INSURANCE
Premium: The amount of money an individual or business pays for an insurance policy.

Policy: A contract between the insurer and the insured, outlining the terms and conditions
of the insurance coverage.

Coverage: The specific protections and benefits provided by an insurance policy.

Deductible: The amount of money the insured must pay out of pocket before the insurance
company begins to cover costs.

Claim: A request made by the insured party to the insurance company for payment of
benefits covered by the policy.

Underwriting: The process by which an insurance company evaluates the risk of insuring a
person or entity and determines the premiums to be charged.

Risk: The likelihood of loss or damage occurring, which is the basis for insurance coverage.

Beneficiary: The person or entity designated to receive the benefits of an insurance policy
in the event of a covered loss.
Policyholder: The person or entity that owns an insurance policy and is
entitled to its benefits.

Insurance Agent/Broker: A licensed professional who sells insurance policies

and provides advice on insurance matters.

Policy Limit: The maximum amount that an insurance company will pay for
covered losses under a policy.

Exclusion: Specific conditions or situations that are not covered by an

insurance policy.

Indemnity: The principle of restoring the insured to the same financial position
they were in before the loss occurred.

Insurance Premium Tax: A tax imposed by some jurisdictions on insurance

premiums.

Reinsurance: The practice where insurance companies transfer portions of

their risk portfolios to other parties to reduce their exposure to losses.
TYPES OF INSURANCE
Life Insurance: Provides a lump sum payment to
beneficiaries upon the death of the insured person. It can
also include additional benefits such as coverage for critical
illness or disability.

Health Insurance: Covers medical expenses incurred by

the insured individual, including hospitalization, doctor
visits, prescription drugs, and preventive care.

Auto Insurance: Protects against financial loss in the event

of an accident or theft involving a vehicle. It typically
includes coverage for property damage, liability, medical
payments, and uninsured/underinsured motorists.
Homeowners Insurance: Provides financial protection
against damage to a home and its contents, as well as
liability for accidents that occur on the property. It may
also cover additional structures on the property and
provide temporary living expenses if the home becomes
uninhabitable.

Renters Insurance: Similar to homeowners insurance

but designed for individuals who rent their homes. It
covers personal belongings, liability, and additional living
expenses in the event of a covered loss.
Property Insurance: Offers protection for physical
property against risks such as fire, theft, vandalism, and
natural disasters. It can include coverage for buildings,
equipment, inventory, and other assets owned by
individuals or businesses.

Travel Insurance: Provides coverage for unexpected events

that may occur while traveling, such as trip cancellations,
medical emergencies, lost luggage, and travel delays.

Disability Insurance: Provides income replacement if the

insured person becomes unable to work due to a
disability or illness. It can be short-term or long-term and
may be offered through employers or purchased individually.
Worker's Compensation Insurance:
• Provides coverage for employees who suffer work-related
injuries or illnesses.
• Typically covers medical expenses, rehabilitation costs, and a
portion of lost wages while the employee is unable to work due
to the injury or illness.
• Required by law in most jurisdictions for employers with
employees.
Unemployment Insurance:
• Provides temporary financial assistance to workers who lose
their jobs through no fault of their own.
• Benefits are typically calculated based on the worker's prior
earnings and are paid for a limited period while the individual
seeks new employment.

Accidental Death and Dismemberment (AD&D) insurance is a

type of insurance policy that provides benefits in the event of death
or serious injury resulting from an accident.
Retirement Plans:
Offered by employers to help employees save for
retirement.
Common types of retirement plans include 401(k) plans,
pension plans, and Individual Retirement Accounts
(IRAs).
Critical Illness Insurance:
Provides a lump sum payment to the insured employee
upon diagnosis of a covered critical illness, such as
cancer, heart attack, or stroke.
The benefit can be used to cover medical expenses, living
expenses, or other financial needs during recovery.
HOW TO BUY INSURANCE ONLINE ?
Research and Compare Options:
• Start by researching different insurance providers and the types of insurance they
offer.
• Consider factors such as coverage options, premiums, deductibles, customer
reviews, and financial stability ratings.
• Use online comparison tools or visit insurance company websites to gather
information and compare quotes. Such as youtube.
Choose the Right Insurance Policy:
• Determine the type and amount of insurance coverage you need based on your
specific requirements and financial situation.
• Consider factors such as your age, health status, family situation, occupation, and
budget when selecting a policy.
Visit the Insurance Company's Website:
• Once you've chosen an insurance provider and policy, visit their official website to
initiate the application process.
• Most insurance companies offer online application forms or tools to help you get
started. Example LIC.IN OR HDFC.IN
Complete the Application Form:
• Fill out the online application form with accurate and up-
to-date information.
• You may need to provide personal details such as your
name, address, date of birth, contact information, and
social security number.

Review the Policy Details:

Carefully review the terms and conditions of the insurance
policy, including coverage limits, exclusions, deductibles, and
premiums, policy's features, benefits, and any additional
options or riders available.
Provide Additional Documentation:
• Depending on the type of insurance you're applying
for, you may need to upload or submit additional
documentation to support your application.
• This could include documents such as
identification, proof of income, medical records, or
other relevant paperwork.

Review and Submit the Application:

• Before submitting your application, take the time to
review all the information you've provided for
accuracy and completeness.
Receive Confirmation and Policy Documents:
• After submitting your application, you should receive
confirmation of receipt from the insurance company.
• Depending on the insurer and the type of insurance,
you may receive your policy documents electronically
or by mail within a few days or weeks.
Make Payment:
• If required, make the initial payment for your insurance
policy using the payment options provided by the
insurance company.
• Some insurers may offer flexible payment plans or
options to set up automatic payments for convenience.
Keep Records:
• Keep copies of all correspondence, documents, and
receipts related to your insurance application for
your records.
• It's essential to have this information handy for
future reference or in case you need to make
changes to your policy.
 Government websites related to
insurance
The IRDAI website (https://www.irdai.gov.in/) provides
valuable information about insurance regulations,
guidelines, and FAQs.

The Government of India has various digital platforms

and initiatives like the Digital India program that aim to
promote online services, including insurance.

Unified Mobile App for New-age Governance (UMANG):

UMANG is a government mobile app that provides access
to various government services, including some related to
insurance. Can not buy insurance through them.
 Some famous Apps and websites for comparing
and buying insurance
• Policybazaar
• Coverfox
• PhonePe
• PolicyX
• Paytm
• Acko
• PolicyBoss
• Many banks in
India offer
insurance
products and
services through
their mobile
banking apps.