What is life insurance? Types of Life Insurance And Life Insurance Policy

life insurance -Today, many people are very aware of life insurance and they want to know all about it.

So, in this article I will tell you “what is life insurance” and “what kind of insurance and what”. In addition, I will tell you why insurance is important and the requirements of life insurance.

In this age, any kind of accident can happen at any time in the future. And, that accident can happen to you, happen to anything you value or your life can be completely out of your hands.

No one can tell what will happen at any time in life.

So, in this life associated with an accident, by insuring yourself and your other valuables in advance, then in the worst of times, you will have a lot of financial gain or help.

The most beneficial thing about life insurance is, “Through this, you can help your family financially even after your death”.And so, I always say “Life insurance is so important to everyone today.”

 life insurance

There are three types of insurance.

  • Life insurance
  • Health insurance
  • General insurance

There are two types of insurance, where insurance is covered on different issues.

So, below we know better “what is life insurance” and “why do life insurance or what are its requirements”.Then, let’s talk about “general insurance”.

What is insurance?

Currently, there are several styles of misconceptions that are related to insurance. A lot of people think that insurance is a kind of investment scheme where your money is deposited like a bank.

And, we can withdraw the money deposited at interest-free in the future. it’s just like any other savings plan, bank recurring, fixed deposit or mutual fund.

But, keep in mind that insurance is not the means or means of earning interest-free money in the future.

This is the part where maximum people make the mistake of understanding the difference between insurance and another investment scheme system.

Insurance will never help you to earn a direct profit.

However, keep in mind that through insurance or insurance schemes, you will be able to get a good amount of money in exchange for future losses.

So, even though there is no direct financial gain through insurance schemes, you can get good money from insurance companies in exchange for various losses or problems that will occur in your life in the future.

As an example, Suppose you have your own “health insurance” from a “health insurance company”. And, as a contract with the insurance company, you have to pay 100$ as a premium every year.

Now, it would be that you do not have to pay even a single penny in exchange for that premium of 1$ every year.

However, if your health problems arise in the future and you need to be admitted to the hospital, the insurance company will pay the entire cost of the hospital.

Note: The higher the premium you pay to the insurance company, the higher the cost the insurance company will pay you against any loss.

I took “health insurance” myself, and in 2019 I had to be hospitalized for poor health. However, for the sake of having health insurance, the entire hospital cost of Tk 4000$ was paid by the insurance company.

Of course, at that time I understood the importance of insurance or insurance requirements.

Now, if it is straightforward to say “what does insurance mean”, then the answer is,

Insurance or insurance means a contract or bail, where, unlike paying a small premium, the future is better than the insurance company as a result of various damages such as loss of vehicle, loss of health, loss of property, theft or death and many more. The amount of compensation will be available.

So what is insurance, you may now understand.

What are the types of insurance?

There are many types of insurance and in many cases, you can insure insurance. However, this 8 type of insurance is seen to be more or less the main or most people. And, these types of insurance are very important to all of us.

  • Life insurance or term insurance.
  • Health insurance.
  • General Insurance.
  • Accidental Insurance.
  • Travel Insurance.
  • Home insurance.
  • Fire Insurance.
  • Property Insurance.

General insurance can also be called non-life insurance.

That means any insurance or insurance that is not involved in your life or that is not covered by life insurance is covered by “general insurance”.

Therefore, there are basically two types of insurance. Life insurance and general insurance. There are many types of insurance out of life insurance, all of which come with general insurance.

What is life insurance?

Life insurance is a type of insurance where a person submits a premium to an “insurance company” on a regular basis, with the intention of receiving a good amount of money after a specified time in the future or after that person’s death.

what is life insurance

Life insurance requirements and why?

If you have a family, and you are only financially supporting your family, it is important for you to have a “term life insurance”.

“Term life insurance” is a type of insurance where, in the event of the death of the insured person for any reason, a fixed sum is paid to his family or nominee after his death.

How much money will be paid to the family after the death of the insured, before considering the insurance?

And, your survival amount, called “sum insured value” will only be determined by the amount of your premium.

The higher your sum insured value, the higher the premium. So maybe you have a good understanding of what life insurance is and why life insurance is required.

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What is health insurance?

Health insurance or health insurance means much more straightforward. The insurance that will protect you from the cost of some or all kinds of hospitals in the future is “health insurance”.

If the person whose health insurance is to be admitted to the hospital for treatment in the future, then the cost of the hospital is paid by the “health insurance company” to which you have paid the premium.

Remember, the amount of money you spend on insurance, called “sum insured value”, will only be spent by the company. However, before making this type of insurance, it is very important to follow the rules and verify yourself.

Always remember that, the first wealth is health.

Health insurance requirements and why?

Health insurance is much more urgent today. Because today, even if you have to go to the hospital for the smallest reason, you also have to spend a lot of money. If you have to go to the hospital once, for whatever reason it is, it is sure to leave money in your hands like water.

So, if you have health insurance in this case, then at that bad time when you need a lot of money, you don’t even have to pay a single penny.

The entire cost of the hospital, or the sum of the insured value you have, will be paid by the insurance company for the entire hospital cost.

So, now you probably understand why health insurance is so important today.

What is general insurance?

General insurance or general insurance is a type of insurance that has all types of insurance except life insurance or life insurance. That is, all types of insurance are general insurance that is not covered by human life.

Or, it could be said that insuring your valuables other than your health and life means general insurance.

In general insurance, your valuables are insured in case of theft, loss or damage. Such as Accidental insurance, travel insurance, motor insurance, fire insurance, building insurance or more.

What does insurance premium mean?

Insurance premiums mean the amount of money you pay on a monthly basis to the insurance company after you take out insurance.

Conclusion about life insurance

So friends, with insurance and what is life insurance, you may now have a complete understanding of the types and types of insurance. However, if you have any other questions about life insurance, please feel free to comment with me.

In the end, I will say, do this 2 insurance will be a must. One is life insurance and the other is health insurance.

Because, in the life of people, no one can tell when the health can begin to go to the hospital and when the last day of human life will come.

Sure sounds bad, but I’m telling you the real thing. If these two types of insurance are insured, both in the hospital or after death, the family will not suffer financially.

Related topic: life insurance, life insurance policy, life insurance companies, types of life insurance,

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1 Response

  1. Samuel says:

    Insurance is an must for one life. And my best bet is Term plan. Which is my fav.
    Thanks for sharing such an great article.

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