Insurance Policies: Contents & Options
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An insurance policy is a well defined contract which clearly describes the terms and conditions, applicable premium, specifications of the extent of coverage and the heads under which the deductions will be made. It is an entirely legal document in which all possible details are mentioned.
Insurance policies can be of various types; ranging from life insurance to medical to non-life general insurance. They all have certain similarities and of course, dissimilarities.
An insurance policy is a well defined contract which clearly describes the terms and conditions, applicable premium, specifications of the extent of coverage and the heads under which the deductions will be made. It is an entirely legal document in which all possible details are mentioned.
Insurance policies can be of various types; ranging from life insurance to medical to non-life general insurance. They all have certain similarities and of course, dissimilarities.
The policies are the basic framework on which the whole contract between the client and the insurance company is based. It may be regarded as the backbone of the entire contract. This ensures that in case of default by any one party, s/he would be subjected to legal consequences.
Insurance Policy: Contents
An insurance policy describes the following aspects with clarity:
- Type of Insurance; namely, life, non-life or medical
- Regular premium amounts needed to be paid by the policyholder
- Purpose of insurance
- Assured amount of money to be reimbursed by the insurance company in case of completion of the maturity period or in case of casualty, hazard or certain loss
- Parameters issued by the specific applications
- Coverage limit of the scheme
- The methods and requirements to be fulfilled for initiation of the scheme
- Suitability criterion
Insurance Policy: Options
There are several options for an insurance policy. These are:
Life insurance policy: A life insurance policy describes the terms and conditions for accessing insurance on life, along with the premium particulars and benefits associated with it. Life insurances generally have a long period of maturity. If the insured person dies within the given time frame, then the insurer; that is the insurance company, would have to compensate the beneficiary of the policyholder with the assured sum as mentioned in the insurance policy.
Medical insurance policy: A medical insurance policy describes the terms and conditions associated with Mediclaim contracts. These insurance policies are intended to insure the health of the policyholder through repayment of the costs associated with the health of a person. Medical insurance companies generally reimburse the policyholder all the expenses associated with his/her ill health.
General insurance policy: This policy encompasses a wide array of policies ranging from residential property risks to commercial property risks, policies associated with the risk of crops, automobile related risks, etc. The different policies under this extensive arena describe all the terms and conditions, premium structure and benefits related with this insurance scheme.
