Types of insurance and the difference between insurance and Investment

The video provides an overview of insurance, covering loss protection, life and non-life insurance, and the differences between insurance and investment. It explains how insurance acts as a financial safeguard against unexpected events, with coverage limits determining the extent of protection. Various types of life insurance plans are discussed, including term, endowment, money back, unit linked, and whole life plans. The video also distinguishes between health insurance and Mediclaim, highlighting their coverage differences. Finally, it contrasts insurance with investment, emphasizing their distinct purposes: risk management versus wealth growth.

What is the primary purpose of insurance?

• To increase wealth over time

• To provide financial protection against unexpected events

• To offer loans at low interest rates

• To invest in stock markets

Which type of insurance provides financial support to beneficiaries if the policyholder passes away?

• Life insurance

• Vehicle insurance

• Travel insurance

• Health insurance

What is a key feature of a money back plan in life insurance?

• Coverage for medical expenses

• Investment in market-linked instruments

• Periodic payouts during the policy term

• Lifetime coverage

How does health insurance differ from Mediclaim?

• Mediclaim covers dental expenses

• Mediclaim covers outpatient expenses

• Health insurance offers broader coverage than Mediclaim

• Health insurance is cheaper than Mediclaim

What is the main goal of investment?

• To reduce taxes

• To grow wealth over time

• To provide financial protection

• To offer insurance coverage

Which of the following is a compulsory insurance in India?

• Life insurance

• Travel insurance

• Health insurance

• Motor vehicle insurance

What should influence your choice between insurance and investment?

• The popularity of the investment

• The number of insurance agents you know

• Your financial objectives and risk tolerance

• The color of the insurance policy