English
Insurance policies are the contracts between a person and insurance companies that guarantee to help you financially with a decided amount if any mishap happens.
There are different types of insurance available today. However, we will talk about two main classifications that cover most of the subcategories, and they are:
- Life insurance
- General insurance
Below, we will list the major subcategories that come under this classification in detail.
Need of Insurance
No doubt the world is uncertain. Therefore, it is good to have insurance to save you and your loved ones from any unexpected risks.
Insurance, whether for life or general, gives you financial aid as well as peace of mind in case of illness and accidents.
Read below to know the major types of insurance in Pakistan in detail:
Life Insurance
Life insurance is a type of insurance in which the insurance companies give the decided amount to the insurance holder on the basis of the premium he deposits. The amount of premium can be paid monthly, quarterly, and yearly. However, depending on the term of the company, it varies. Based on your convenience, you can choose the length of your life insurance, its limitations, coverage, and payment choice.
It helps you with financial aid in case the death of an insurance holder and any other unexpected incidents happen to the person. It makes sure the well-being of a policyholder and his family and loved ones.
The different types of life insurance are:
Whole Life Insurance Policy:
As the name suggests, this policy is for a lifetime. The person will pay a premium for the whole life. And the insurance amount will be given to the family or loved ones of the insurer only in case he dies.
Endowment Policy Plans:
In this case, the fixed amount is given to the insurer after the completion of the agreement years or in case of the insurer’s death.
Annuity Insurance Policy:
Under this policy, the insurance money is paid to the insurer on a monthly, yearly, or quarterly basis. However, the payment is processed only after the person hits a certain age according to the insurance policy.
Child Endowment Policy:
In this insurance plan, a person takes an insurance plan to meet the expenses of his child after a certain period of time. When the policy matures, it will be given to the insurer. However, terms and conditions will be applied according to each insurance policy and company.
Joint Life Policy Plan:
Two people share this policy. They pay a premium yearly or quarterly according to their agreement. The premium is paid either jointly or individually. The amount of insurance is paid to both if any of the policyholders dies, and the amount is given to the survivor. Moreover, the policy is usually taken by a husband and a wife or by two business partners.
General Insurance
This type of insurance covers other aspects of Human life besides the death of a policyholder. It provides financial help in case of damage or loss of home, bike, auto, marine, etc.
Below is the detail of general insurance and the categories it covers:
Health Insurance:
Health insurance is very beneficial. In this, the insurer keeps paying the premium monthly or yearly as per the agreement. However, the company makes sure that in case of health issues and certain illnesses, it will give a lump sum amount to the policyholder. Health insurance is renewed every year.
Car or Bike Insurance:
Automobile insurance is the type of insurance in which a specific amount is provided to the person in case his vehicle crashes or meets an accident.
Home Insurance:
As we can get an idea by name, home insurance gives full coverage of a person’s house. In case of any damage to a house’s infrastructure, building or any other property damage, the insurance company will pay for it. Moreover, these types of insurance help you recover from disasters like fire, robbery, and earthquakes.
Cattle Insurance:
In this case, the owner of a cattle receives an amount as per agreement in case of cattle’s death. This might be due to a number of reasons, such as during pregnancy, accident, or by illness.
Conclusion
So, these were the main types of insurance in Pakistan. We have discussed the basic definition and perks of each; however, the terms and conditions of each insurance company vary.
Therefore, before taking any insurance plan, please read the terms thoroughly in case of any future repentance. However, the insurance plan policies of IGI Insurance are transparent with no hidden costs. We offer different insurance types such as crop insurance, fire insurance, health and many more. Moreover, our team is available to help you get the best insurance plan that fits your needs.
So, take the first step to save your future!