For example, if you are healthy and do not have a medical history of getting treatment for severe bodily diseases, you will likely to pay less for health insurance or life insurance policy than someone suffering from multiple ailments. You should also know that different insurance companies may ask for different premiums for similar types of policies. So, selecting the right one at a price you can afford does require some effort.
INSURANCE
WHAT IS INSURANCE?
An insurance policy/plan is an contact between an individual (Policyholder) and an insurance company (Provider). Under the contract, you pay regular amounts of money (as premiums) to the insurer, and they pay you if the sum assured on unfortunate event arises, for example, untimely demise of the life insured, an accident, or damage to a house. Let’s know more about what is insurance and what are the various benefits, features & types of insurance available in India.
Based on the insurance terms, the insurer provides a lump sum amount to the policyholder/nominee in case of an eventuality. The choice of a specific type of insurance policy is made based on individual needs and life goals. There are various components of an insurance policy, a firm understanding of which helps a lot in choosing the plan that is most suitable for your needs.
Insurance Premium Policy
The premium of an insurance policy is the amount that you need to pay to purchase a specific amount of insurance cover. It is typically expressed as a regular cost, be it monthly, quarterly, half-yearly, or annually, that you incur during the premium payment term. There are various factors based on which an insurance company calculates the premium of an insurance policy. The idea behind is to check the eligibility of an insured individual for the specific type of insurance policy that he/she wants to buy.
