What is Insurance ?
Insurance is a financial safety net that provides protection against potential financial loss. It is a contract between two parties: the insurer (the company offering insurance) and the insured (the person seeking insurance). The insurer agrees to reimburse the insured in case of events such as accidents, injuries, death, theft, or other covered losses.
Common types of insurance policies include life, health, vehicle, and property insurance. Key components of an insurance policy typically include the premium (the amount paid for coverage), policy limit (the maximum amount the insurer will pay), and age (for life and health insurance).
Popular types of insurance in India include:
Life insurance
Health insurance
Car insurance
Home insurance
Education insurance
Tax Benefits on Insurance:
Life insurance premiums up to ₹1.5 lakh are eligible for tax deduction under Section 80C.
Medical insurance premiums up to ₹25,000 for yourself and your family and an additional ₹25,000 for your parents are eligible for tax deduction under Section 80D.