Insurance is the way of giving security to the person and his/her property. It is the contract to indemnify losses occurred due to any particular risk, in consideration of cash payment. It provides financial protection against any risk there are many type of insurance. They are as follows
• Endowment life insurance
The endowment policy is issued for a fixed period of time for example 15 years, 20 years etc. The premium is payable during that period only. IT is very popular because it makes the provision for the security of family as well as livelihood in the old age.
• Whole life insurance
In this life insurance, insured person will have to pay the premium amount in whole of his life time and sum assured is paid to the dependent of the insured person on his death. After the death of the person no need to pay premium by the dependent of insured person.
• Children’s education and marriage Endowment life insurance
In this type of insurance parents of any children should make insurance for fixed period of time for their education and marriage. Parents should keep the children’s name as his representative. After the expiry of time the insured amount gets by the family which is used for the children’s education and his/her marriage.
• Term life insurance
In this type of insurance, there is only short time of period. It is simply a short term insurance. It is made only for the short period until and unless the amount of loan is repaid. This insurance is made to gives the security to the creditor.