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quickly or not invested prudently with the result that the employee finds himself
without regular income in his post - retirement days. Pension is therefore
an ideal method of retirement provision because the benefit is in the form of
regular income. It is wise to provide for old age, when we have regular income
during our earning period to take care of rainy days. Financial independence
during old age is a must for everybody.

There are two types of annuities (pension plans)

i. Immediate Annuity : In case of immediate annuity, the annuity payment from
the insurance company starts immediately. Premium for immediate annuity is
to be paid in lump sum in one installment only.
ii. Deferred Annuity : Under deferred annuity policy, the person pays regular
contributions to the insurance company, till the vesting age/vesting date. He
has the option to pay as single premium also. The fund will accumulate with
interest and fund will be available on the vesting date.

General or Non-life Insurance
The insurance other than life insurance is known as General or Non-life insurance.

Fire insurance
Fire insurance is an insurance that is used to cover damage to a property caused by
fire. Fire insurance is a specialized form of insurance beyond property insurance,
and is designed to cover the cost of replacement, reconstruction or repair beyond
what is covered by the property insurance policy. Fire insurance is a form of property
insurance which protects people from the costs incurred by fires. When a structure is
covered by this type of insurance, the insurance policy will pay out in the event that
the structure is damaged or destroyed by fire. Some standard property insurance
policies include fire coverage in their coverage, while in other cases, it may need to be
purchased separately.

Depending on the terms of the policy, fire insurance may pay out the actual
value of the property after the fire, or it may pay out the replacement value. In a
replacement value policy, the structure will be replaced in the event of a fire, whether
it has depreciated or appreciated: in other words, if homeowners purchase a home
and the value increases, as long as it is covered by a replacement value policy, the
insurance company will replace it. An actual cash value policy covers the structure,
less depreciation. Most accounts come with coverage limits which may need to be
adjusted as property values rise and fall.

Marine insurance
Marine insurance is a type of insurance that covers boats and ships, as well as their
cargo and in some instances the places where the boat or ship is docked. Ships sailing
on sea are subject to very many risks. They may collide against another ship, or be

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