Insurance Meaning in Simple Words | Insurance Types

According to Wiki, insurance meaning in simple words is something that people buy to protect themselves. On the other hand, it is an arrangement by which a company provide a guarantee of payment for specified damage, illness, loss or death.

Insurance meaning in simple words

Firstly, insurance provides protection from financial loss to you and to your family. In other words, it helps you in handling the unaware risk.

However, they give you the fund in return for payment of a specified period depending on the policy you have taken.

In short, an organization or entity which provides insurance is called the insurance company, insurer, the insurance carrier. So a person who buys insurance is known as a policyholder or insured.

Now you got the idea of what is insurance meaning in simple words.

Here is the list of all the types of insurance:

Insurance Meaning in Simple Word and insurance types

Life Insurance:

It is the most common insurance where policyholder pays some amount of money to a specified period to the insurer or insurance company.

If there is the death of the policyholder then his/her family will get the policy fund.

Property Insurance:

If your property or home get destroyed by the earthquake, flood or any other reason then you can claim the property insurance.

Marine Insurance:

It provides protection against the loss or damage of ships, terminals and cargo by enemies, fire, rock or other.

Fire Insurance:

Fire insurance covers risk to property destruction caused due to fire. Therefore, it helps in getting the cost of reconstruction to the society.

Liability Insurance:

It provides protection resulting from injuries and damage to people/property.

Guarantee Insurance:

As the name indicates, a life insurance company cannot deny your claims.

Meanwhile, companies charge higher premiums for this to claim the funds easily after death.

Social Insurance:

It provides protection to the weaker societies who are unemployed and are not able to pay the premiums.

Other Insurance:

The other insurance includes automobiles insurance, goods insurance, travel insurance, pet insurance, and more. It depends on country to country and the policy company.

To conclusion, this is the insurance meaning in simple words and its types. Which insurance would you take or currently paying? Please let us know if you need help.
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