Planning to buy an insurance policy? Here is what you need to know

There are three main components of an insurance policy: premium, sum assured and deductibles

Insurance provides a cover to an individual for the financial losses he incurs due to an unexpected adverse event. You pay a certain amount as premium at fixed intervals and the insurance company gives you a specified amount in case you suffer an accident or theft.

What are the components of insurance?

There are three main components of an insurance policy: insurance premium, sum assured and deductibles.

The premium is the amount you would have to pay to an insurance company at regular intervals in order to keep the insurance contract in force. The payment could be made monthly, quarterly