Question

What are the various types of insurance?

Answer 1

Dear Student,
Here is your answer,
There are two broad types of insurance:

• 1.Life Insurance: Life insurance is a contract that offers financial compensation in case of death or disability. Some life insurance policies even offer financial compensation after retirement or a certain period of time.

• 2.General Insurance: A general insurance is a contract that offers financial compensation on any loss other than death. It insures everything apart from life. A general insurance compensates you for financial loss due to liabilities related to your house, car, bike, health, travel, etc.

  It is of following types :​​​​​

• (a) Health Insurance

  This type of general insurance covers the cost of medical care. It pays for or reimburses the amount you pay towards the treatment of any injury or illness.

(b) Fire Insurance

Fire insurance pays or compensates for the damages caused to your property or goods due to fire.

(c) Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.

Regards.