6 Types of Insurance
Insurance is a security contract in which the insured promises to pay premiums of certain amount for a fixed term. On the other hand, the insurer agrees to compensate for any damage or loss of the insured according to terms and conditions.
Anything that is precious and you want to protect can be insured. But broadly speaking, there are 6 types of insurance that you can avail according to your need and ability.
Given below are details on the 6 different types of insurance:
Auto Insurance: Under the policies of auto insurance, coverage is provided for any damage caused by accidents. The insured needs to pay an amount on a monthly basis to the insurer who in turn provides compensation to the insured in case of accident and mishaps. There are 3 types of auto insurance coverage – liability coverage, physical damage coverage and uninsured and underinsured motorist coverage. Car insurance comparison is important in order to achieve cheap car insurance quotes that will help you to buy your most suitable policy.
Life Insurance: Life insurance is a plan which provides protection to the insured and his family with financial coverage in case of any mishaps. To avail the benefits of life insurance policy, the policy holder has to pay a monthly premium to the insurer for a certain period of time. Some types of Burial or Funeral coverage may fall in this Life Insurance category.
Health Insurance: Under this type of health care cover, medical expenses are covered. When an insured person needs medical treatment due to illness or accident, the insurance agent provides coverage for his expenses such as doctor fees, hospital fees, medicine cost and other related bills.
Home Insurance: The most popular among the 6 types of insurance is the home insurance that provides compensation for any mishaps that occurs on your home. Coverage is provided according to the policy and premium paid by the homeowner. There are various types of home insurance plans that you can choose from to suit your needs.
Disability Insurance: Disability insurance is the financial coverage provided to an insured individual when he looses his ability to work due to any illness or accident. There are two types of disability policies: Short Term Disability (STD) and Long Term Disability (LTD). In short term disability, compensation is provided for a period of maximum 2 years. On the other hand, if you avail the long term disability plan, you can get benefits for the rest of your life.
Business Insurance: If you have a business organization, be it small or big, you should always opt for business insurance policies to protect it from any mishaps. Under business insurance, you can avail policies that provide coverage for business property and liability. The most popular business insurance policy that is availed by various business concerns is BOP (businessowners policy). BOP is a package that provides coverage for property insurance, business interruption insurance and liability protection.
Before you invest in any of the 6 types of insurance, get detailed information from insurance agents so that you do not face any unwanted problems later.