Insurance Policies: What are they, types and cover offered
Insurance is a source of tranquility for individuals, families and businesses. It is a service tailored to the user that guarantees a quick economic response to setbacks of different severity.
However, in order to make the best decision when hiring insurance, it is essential to know in depth its characteristics. Once you own a credit card, for example, Axis bank credit card you might get some insurance benefits available to you.
What is an insurance policy?
An insurance policy is a contract between an insurance company and a private or collective user.
This document details what the insurance covers and in what cases each of the clauses could be applied. That is why it is so important to know what is being hired so as not to take surprises when you have to use the policy.
How is insurance different from a guarantee?
There are also policies in the commercial area, but in that case, they are not insurance, but rather guarantees. In summary, the guarantees are additional advantages in order to formalize a transaction.
What types of policies exist and what do they cover?
Virtually any area of people’s lives can be insured. However, there are a series of insurance more common, such as the following:
Home insurance
It is one of the most popular policies because it is directly related to family tranquillity. This insurance covers the policyholder against possible domestic catastrophes, such as:
- Fire and domestic fires.
- Floods and water leaks.
- Robberies, intrusions and similar altercations.
- Failures or even earthquakes.
It is one of the broadest categories of insurance, so the range of coverage is very considerable, depending on the needs of each client.
Car insurance
Their contracting is mandatory by law (as Civil Liability insurance) and many drivers extend the coverage of the policy. It is possible to cover any damage suffered by the vehicle, including a total loss, with the insurance at all risk.
Health insurance
It is a policy dedicated to health needs. Families and individual users can enjoy faster professional assistance and a wide variety of medical centres and/or clinics.
Depending on the coverages contracted, it is possible to benefit from medical assistance in other countries or the absolute reimbursement of pharmaceutical expenses.
Postal Life insurance: This type of insurance can ensure the quality of life of family members, especially children, after the death of one of the spouses. It is another guarantee of tranquility for families, whether it is contracted on a fixed term (for a specific period of time) or for a lifetime (until death).
Other types of policies for a safe life
Along with the types of insurance discussed above, it is possible to find more specific proposals in the market. This would be the case of home insurance for tenants and other specific situations. Either way, assess your needs to decide exactly which policy best responds to them. This way you will guarantee your security and tranquility.