Insurance is an important way of protection against financial loss. It’s a form of financial risk management, mostly utilized to mitigate the risk of some unpredictable or contingent cost. The basic concept is that you purchase insurance to protect your assets in the event of some disaster or loss which may occur. The loss may be due to fire, storm, earthquake, explosion, riot, theft, death or vehicle accident. Insurance also takes care of your legal requirements, such as paying taxes and claims. Today, there are various types of insurance available.
One example is life insurance. Life insurance policies protect the life and future economic welfare of an insured person, his/her dependents and family, and the dependents’ survivors, when the insured dies. A wide variety of insurance policies exists.
Home insurance and travel insurance are two examples of the many types of insurance. Home insurance provides protection for your personal property such as furniture, clothing, appliances, jewelry, electronics, and other valuables in the home. Travel insurance offers protection for personal possessions while traveling. Examples of home and travel insurance are mortgage insurance, auto insurance, homeowners insurance, life insurance, travel insurance, pet insurance and car title insurance.
Health insurance policy is another form of insurance policy. Health insurance provides coverage for medical costs for you or your family in case of an unexpected illness, injury or surgery. Health insurance also includes long-term and catastrophic health coverage for illness, surgery and treatment which is not provided by any other form of insurance policy. Examples of common types of health insurance are individual health insurance, group health insurance, family health insurance, group dental insurance, employer sponsored health insurance, disability income protection insurance, vision insurance, prescription drugs, health risk insurance, and temporary or permanent health insurance.
One type of insurance that is common is the home insurance policy. Home insurance provides protection against loss of home or property due to fires, explosion, smoke damage, malicious mischief or other causes. Home insurance policy also provides coverage for liability and property damage that is caused by you or your guests. It differs from third-party insurance because it does not have reimbursement benefits that a third-party has.
Motor vehicle insurance provides coverage for injuries, damages to your vehicle and other property and injuries resulting from accidents with automobiles. General insurance is required for all individuals and companies to carry. It is very common for everyone to be required to carry some form of health insurance. The different types of insurance available can be classified into several groups such as individual health insurance, group dental insurance, group automobile insurance, and homeowner’s insurance. Although the cost of these different types of insurance varies, most people find that general insurance is by far the most inexpensive and practical.