INSURANCE
APRIL 18, 2021
simple guide of insurance types
There are numerous insurance types and could be difficult to determine what insurance you really need.
Generally there are 7 types of insurance that is essential for our everyday needs, and they are :
- Life Insurance or Personal Insurance
- Health Insurance
- Car Insurance
- Property Insurance
- Marine Insurance
- Fire Insurance
- Travel Insurance
1. Life Insurance
Here the subject matter of insurance is the life of a human being. The insurer will pay the fixed amount of insurance at time of death or until the insurance date to cover expires.
The two basic types of life insurance are traditional whole life and term life. The whole life covers you until you die, as long as you pay the monthly premiums. Term life on the other hand, covers you for a set amount of time. Factors to consider including age, occupation and number of dependent children.
2. Health Insurance
A study published by the American Journal of Public Health in 2019 reveals that more than 900 Americans who filed for personal bankruptcy between 2013 – 2016 have medical problems. The bankruptcy caused by the medical bills, income loss because of the illness or both.
The best way is to participate in employer’s insurance program. But not every employer provides this kind of insurance for their workers. If that’s the case then you need to buy personal health insurance.
3. Car Insurance
The car insurance gives protection against private cars from the risks of daily threats such as natural disasters, fires, damage and accidents. There are two types of car insurance : car insurance and car insurance All Risk Total Loss Only (TLO).
With car insurance your vehicle is only covered for accidents or the vehicle missing. With the All Risk car insurance your vehicle will be protected with all kind or risks including small collision to the vehicle missing.
4. Property Insurance
With this type of insurance Your homes and buildings will be protected from the risk of damage and fires. The All Risk type of this product means that it protects all kind of damage with certain exceptions.
Property Insurance is not just for the buildings that are already built and occupied but also for those that are still in the process of development. The risk may be fire or marine perils, theft of property or goods damage to property at the accident.
5. Marine Insurance
Marine Insurance insures ship (hull), cargo and freight against marine perils such as collision with a rock or other ships, captured by pirates, attack by enemies, fire and other things.
There are two main marine insurance today : Ocean Marine Insurance and Inland Marine Insurance. Ocean Marine protects ships from marine perils while Inland Marine protects from risks of cargo and shipment problems that may occur.
6. Fire Insurance
With the Fire Insurance the loss due to fire are compensated. The property or business or industry covered by the insurance will remain approximately in the same position in which it was before the loss.
The losses from other factors can be insured under this type of insurance too. This includes loss because of war, turmoil, riots and others.
7. Travel Insurance
A travel insurance policy can provide you with cover you may need for financial losses caused by many factors that can affect your trip, before, during or even after your trip.
Travel insurers offer a variety of policies including cover for individuals, families and couples. If you are a frequent traveler there are also multi-trip and annual policies for your convenience.
So, if you are going to buy an insurance, make sure that type is what you need for. The premiums should be adjusted by the amount of your income each month.
Make sure you understand the types of insurance products as well as the benefits provided. And the last thing, read the insurance policy carefully, ask some important questions and look for help to professionals if you need to.
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