As the name implies, insurance protects against monetary loss. It is an agreement between two parties: the insured, who needs insurance, and the insurer, a business that offers insurance. Under the terms of this contract, the insurance provider is legally obligated to offer monetary security in the form of compensation in the event of any loss, including theft, damage, death, or accident.
Insurance coverage come in a variety of forms, including health, life, property, and auto. The premium, policy limit, and age (in the case of life and health insurance) are the standard essential elements of an insurance policy.
In India, the most popular kinds of insurance are:
- Life insurance
- Health coverage
- Auto insurance
- Household insurance
- Insurance for education
Insurance-related tax benefits:
- Under Section 80C, a life insurance premium of up to ₹1.5 lakh may be deducted from taxes.
- Section 80D provides a tax-saving deduction for medical insurance premiums up to ₹25,000 for you and your family and ₹25,000 for your parents.
