An insurance policy protects you against financial losses. As such, the policy becomes necessary. If you have a car or a bike, buying a motor insurance policy is mandatory as per law. Even in case of life insurance, the security given by a life insurance policy is unparalleled which makes the policy a must buy. When it comes to health insurance, one cannot ignore the high medical costs which are associated with a health ailment. Having a health insurance policy, therefore, makes sense to protect against the financial implication of any medical emergency.

Life insurance plans cover the risk of dying too early. Health insurance plans, on the other hand, cover the risk of medical contingencies. While life insurance plans pay a benefit in case of death or maturity, health insurance plans pay a benefit if the insured suffers a medical contingency which is covered by the plan.

Premium is the cost of insurance. It is the money which you undertake to pay to the insurance company in return for the coverage which the company provides.

Insurance policies can be purchased online after comparing the different policies and then choosing the best one. After the policy is chosen you need to fill an online proposal form, submit the required documents and pay the premium online and the policy is issued.

A claim is said to occur when the insured event happens and the insurance company becomes liable to pay the compensation for the financial loss suffered by the insured.

Insurance policies come with a specified tenure. When the tenure is over, the cover provided by the policy stops. To continue the coverage, the policy is required to be renewed. Thus, renewal of an insurance policy means continuing the coverage of the policy for an additional tenure by paying the required renewal premium to the insurance company.