Types Of Insurance
Life is very unpredictable. One day things are okay the next they are not. It becomes very frustrating that we cannot control some aspects of our lives and that is where insurance comes in. Insurance is a risk management contract shared between an individual or an entity to ensure reimbursement or partial payment from an insurance company. It would be out of the ordinary that an individual might need every insurance product in the market, even if they could manage to pay for them all.
It is a matter of prioritization to ensure that the policies you diligently pay for benefit you the most. It is quite absurd for an individual to purchase a policy from an auto insurance agency without owning a car. Below are examples of insurance covers that are available in the market;
- Car Insurance
This is actually the backbone of the insurance industry. This is because all governments require their citizens to insure their cars for the purpose of the management and maintenance of road safety. A policy on car insurance come in three major packages; third party fire and theft, third party and comprehensive cover. The third party covers other people involved in an accident or damage to their properties, but the repairs or replacement of the car is all on the owner. The third party fire and theft cover both the people, repair, and replacement only if affected by fire or theft. And comprehensive covers all the above plus pays for the damage to your car.
- Medical Insurance
Hefty hospital bills could render one bankrupt. Most medical procedures are very costly and hence most practitioners first ask the family of the affected if they are insured. Health insurance reimburses all or part of the medical costs incurred during treatment. It covers most in-patient treatment and daycare surgery. Some also include outpatient services such as consultancy. Other benefits one enjoys from this policy is routine check-ups, prenatal and maternity cover, cosmetic surgery as well as cover on chronic illnesses treatment.
- Home Insurance
Repairing a home can be costly, so house insurance can go a long way in saving you a considerable amount of financial constraints to this venture. Here, homeowners get to enjoy the repairing or rebuilding costs taken up by insurance company in case their house is affected by flood, storm, fire or any other natural disaster. If one chooses to add an extra of content insurance, their possessions are covered in case of damage or loss.
- Travel Insurance
This cover is essential for people who are moving from state to state. It caters to cover emergency medical expenses fully, loss of bags, personal liability if you are sued for property damage as well as taking up the costs in case of delaying, cancellation or cutting short your trip. This saves the traveler a whole lot of trouble while abroad.
- Life Insurance
An individual with a family depending on their income to cover their living expenses would highly benefit from this type of insurance in case they die, are diagnosed with a critical illness or are disabled. This policy pays all your dependents a lump sum of money or constant regular payments in case the above mentioned affect the policyholder. This insurance cover gives you peace of mind as expenses as school fees and medical are sorted even after your demise.