Types of Insurance Policies

Category	Types
Life Insurance	Term Life Insurance Whole Life Insurance Endowment Plans Unit Linked Insurance Plans (ULIPs) Child Plans Pension Plans
General Insurance	Health Insurance Motor Insurance Travel Insurance Home Insurance Cyber Insurance

Term Insurance	It is one of the most basic and affordable life insurance products. As the name suggests, it covers you for a specific timeframe. With this policy, your loved ones will receive a lump-sum benefit after your death. The amount received is tax-free and can be used by your dependents as and when needed. However, if you survive the policy term, no benefits will be paid to you or your family. Additionally, you can use the term insurance calculator to determine the cost of the policy based on your desired coverage and rider benefits.
Whole Life Insurance	As the name suggests, the policy covers you for a lifetime. Your loved ones will receive compensation in the event of your unfortunate demise. Moreover, your dependents are also entitled to a bonus that usually accumulates on the policy over time.
Endowment Plan	Much like term life insurance, this policy covers you for a specific period. A lump-sum benefit is given to your family in the event of your sudden death. However, unlike term insurance, you are entitled to receive maturity benefits after the policy term is over.
Unit Linked Insurance Plan (ULIP)	ULIP provides dual benefits – life insurance cover and investment. A part of the premium is used for life insurance cover; whereas the remaining amount is invested in equity or debt funds. The policy pays a lump-sum benefit from the life insurance cover to your loved ones after your death. Additionally, it also pays the returns gained from the investments.
Child Plan	As the name suggests, the policy provides financial security to your children. In case you die, your child receives a lump-sum amount. Additionally, your child receives a certain amount after every specific milestone they achieve.
Pension Plan	This policy allows you to build your retirement fund. That way, you continue to receive money, even after your retirement. However, the sum assured can be claimed by your loved ones after your death.

Health Insurance For	Tax Deduction on Premium	Total Tax Deduction
You + Your Parents (All below 60 years old).	₹25,000 + ₹25,000	₹50,000
You (if you are below 60 years old) + Your Parents who are senior citizens	₹25,000 + ₹50,000	₹75,000
You (if you are a senior citizen) + Your Parents who are senior citizens	₹50,000 + ₹50,000	₹1 Lakh

If you are worried about the cost of the policy, use the health insurance calculator to determine the premium rates. Based on the results, you can shortlist your options and choose a health plan that fulfils your and your family’s medical needs.

 

Exclusions in Health Insurance

A few things a health insurance plan does not cover are as follows:

• Medical treatment or hospitalisation due to war or other such activities

• Medical expenses arising due to alcohol or drugs

• Any claims arising during the policy waiting period

• Diagnostic charges if the report does not confirm the covered disease

• Self-inflicted injuries

 

2. Motor Insurance

Motor insurance provides financial protection to your motor vehicle in case of damages/loss due to accidents, theft, and natural or man-made disasters. You can buy motor insurance for your private as well as commercial vehicles. Moreover, motor insurance is a mandatory policy under the Motor Vehicles Act, 1988.

 

There are two types of motor insurance plans available in India. 

A) Car Insurance Plan

In India, you can either buy a third-party car insurance plan or a comprehensive car insurance plan, depending on your requirements. A third-party car insurance plan covers third-party liabilities only. The policy is affordable but offers limited coverage. A comprehensive car insurance plan, on the other hand, provides extensive coverage. It covers third-party liabilities and damage to your vehicle as well.

 

You can enhance the scope of your comprehensive car insurance plan with add-on covers. For a slightly high premium rate, you can provide your car with all-around protection with a comprehensive plan. If you are worried about how much the policy will cost you, use the car insurance calculator to determine the same.

 

Exclusions in Car Insurance

 

A few things that are commonly not covered in car insurance plans in India are as follows:

• Damage or loss to the vehicle when the policy is inactive

• Loss of personal belongings inside the car unless you have an add-on benefit to cover the same

• Damage or loss due to the car when driving without a valid licence

• Damage or loss when driving under the influence of intoxicants

• Damage due to war-like activities or nuclear risks

 

You can get in touch with the insurer to understand the exclusions of your car insurance policy before purchasing it. 

B) Two-wheeler Insurance Plan

A bike insurance policy is a financial protection plan for your motorcycle. Similar to car insurance, bike insurance is also available in two types: third-party bike insurance and comprehensive bike insurance.

 

A third-party bike insurance plan has limited coverage as it covers third-party liabilities only. If you want extensive coverage for your two-wheeler, it is best to buy comprehensive bike insurance. Also, you can buy add-on covers to enhance the scope of the comprehensive policy as per your needs. If you are wondering how much premiums you have to pay towards a comprehensive bike insurance plan, use the bike insurance calculator for the same.

 

Lastly, know that if you want to ride your bike or drive your car legally in India, it is mandatory to have a valid motor insurance plan. Failing to present the document when asked by the traffic police officer can lead to a hefty fine. Besides, the absence of a valid motor insurance plan during accidents or other unfortunate events can lead to claim rejections.

 

Exclusions in Two-wheeler Insurance

 

A few things that are commonly not covered in bike insurance plans are as follows:

• Basic wear and tear of general component of the bike

• Mechanical or electrical breakdown of the motorcycle

• Damage or loss due to the bike when riding without a valid licence

• Damage or loss when riding under the influence of intoxicants

• Damage due to war-like activities or nuclear risks

 

For resolving any doubts, get in touch with your bike insurance provider immediately.

3. Travel Insurance

As the name suggests, a travel insurance plan protects you against any financial liabilities (medical or otherwise) during your travel abroad or within India. The things that are usually covered under a standard travel insurance plan are as follows:

• Baggage loss

• Sudden medical contingencies

• Passport loss

• Hijacking

• Flight delay/cancellation

• Accidental deaths

 

Based on your preferences, you can buy an individual travel insurance plan, a family travel insurance plan, or student travel insurance plan.

 

Exclusions in Travel Insurance

 

Following are the things that are commonly not covered under travel insurance.

• When travelling against doctor’s advice

• Luggage delay (less than 24 hours)

• Medical expenses due to self-inflicting injuries during the trip

• War or riots when in foreign lands

• Participation in dangerous sports such as bungee jumping

• You can get in touch with your travel insurance provider to resolve any doubts you may have before buying the policy.

4. Home Insurance

Home insurance is a policy that financially protects your house against damages/loss due to natural and man-made calamities, fire, or burglary. The cover is also extended to the valuable items inside your home. A few types of home insurance plans available on Bajaj Markets are as follows:

• Home building (structure): Provides financial protection to your home/property.

• Household articles (content): Provides financial protection to valuables inside your house.

• Home building (structure) & Household articles: Provides financial protection to both your house and the valuables inside it.

 

Besides, you can use the home insurance calculator to determine the premium rate of your desired coverage. You can read about the home insurance exclusions by visiting Bajaj Markets.

Insurance Policy	Factors Affecting the Premium Price
Life Insurance	Your age Medical conditions Profession Type of policy Lifestyle habits Sum assured amount
Motor Insurance	Make and model of the vehicle Type of coverage Add-on covers (if any) Age of the vehicle (at the time of renewal or buying insurance for a second-hand vehicle) Driving history Insurance claim history
Health Insurance	Yours and your family’s medical history Sum insured amount Type of health plan and add-on benefits Your age and gender
Travel Insurance	Type of coverage Sum assured amount Your age Your health The place you’re travelling
Home Insurance	The size of the house Type of home insurance coverage Age of your home and technology installed inside it Area of residency Sum assured amount