Different types of insurance policies in India

Insurance provides you with a shield against various uncertainties in life. A health insurance safeguards you against financial difficulties if you suffer from any diseases. An accident cover can help you cover the treatment costs if you meet with an accident.

While planning to buy an insurance policy, you must choose the right type of insurance to secure yourself and your family from financial risk. With the right combination of policies, you can secure almost all your assets and live without worries.

You should compare policies offered by different insurers and choose the one that offers the best coverage at a reasonable cost. Having an awareness of the inclusions and exclusions of a policy is also of paramount importance.

Types of insurance policies:

In India, insurance is broadly categorized into three categories:

• Life insurance
• General insurance
• Pocket Insurance offered by Bajaj Finserv

Let’s learn a little more about the types of insurance:

1. Life insurance

Life insurance covers the dependents in case of the untimely death of the policyholder. In such cases, the insurance company pays a pre-approved sum to the policyholder’s beneficiaries.

A few variants of life insurance are listed below:

• Whole life plan: Whole life plans provide policyholders with coverage for the entirety of their life (or till 100 years of age). These plans are often used to create an inheritance.
• Term plan: Term plans provide a life cover for a specific term. However, no payments are made if the insured person survives the tenor.
• ULIP: ULIPs provide a life cover, along with investment in equities, debt market, and others. In case of the insured person’s demise, the nominee gets the sum assured or fund value, whichever is higher.

• Child plan
• Retirement plan
• Investment plan
• Savings plan
• Protection plan

2. General Insurance

All non-life insurance policies are clustered under general insurance. These policies are for shorter tenors (usually twelve months), but policyholders have the option of renewing them.

Popular variants of general insurance include:

• Health insurance: Health insurance covers medical and healthcare costs. These policies can be individual policies or group policies and extend coverage to your family.
• Motor insurance: Such policies cover two-wheelers, private cars, and commercial vehicles against theft, physical damage from accidents, and natural or man-made calamities. They even cover liabilities arising out of damages/ injuries caused to a third party.
• Home insurance: A home insurance policy covers your home against losses arising out of fire accidents, weather conditions, theft, amongst others. This insurance includes standalone policies like fire insurance, earthquake insurance, flood insurance etc. to protect your assets.

3. Pocket Insurance

You can also check out Pocket Insurance plans offered by Bajaj Finserv that provide coverage against various everyday risks at an affordable premium and can be availed online easily.

You can choose from over 360 Pocket Insurance products across health, travel, life, and assistance categories. Starting at just Rs. 19, some of the products include Fonesafe Mobile Screen Protection, Dengue Cover, Hospital Cash Cover, Domestic Holiday Cover, Trek Cover, Wallet Care, Key Safeguard, amongst many others.

These policies can be bought online in three easy steps. All you need to do is log on to the Bajaj Finserv website, fill up the application form, and make the payment using your preferred mode of payment.