Types of Insurance

What to Know About Important Types of Insurance

There are many different types of insurances that are available to people who are looking to protect themselves, their businesses, their loved ones or other insurable interests. Insurance is designed to provide financial coverage to individuals that face an accident or other tragic or unforeseen circumstance. Many people consider it wise to have insurance, even though the chances of needing to use insurance may be rare. When looking for insurance in any field or insurance area (such as life insurance, health insurance, etc), it is important to talk to people who have already purchased insurance in the field where you're looking, as not all insurance companies cover certain areas. When it comes to purchasing insurance, you may not always use the insurance plan, but in the event that you someday need to, you can believe that you will "get what you pay for."

Insurance coverage requires that you purchase a contract with a company and agree to pay a certain amount each year in exchange for an insurance company's contractual agreement to pay for specific and pre-determined financial losses for the duration of the term of the policy. The amount you pay, called a premium, for the contract of insurance with a particular company. A" deductible" is a term that refers to the amount of money that you pay up front (usually before a procedure) for a particular claim. The deductible precedes the insurance coverage.

Auto

Collision coverage is widely regarded as the most important and common type of insurance coverage to have on an auto. Collision coverage is in place to protect you in the event that your automobile collides with another vehicle or object, which is a relatively common occurrence on roadway. The role of collision coverage is to pay for the repair or damage to your auto, regardless of whose fault the accident was.

There are a number of other types of auto insurance including, but not limited to - Bodily Injury, Replacement Cost Coverage, Supplemental Death Benefits and Towing and Labor Coverage.

Homeowners Insurance and Renters

Homeowners insurance and renters insurance are designed to protect your home and possessions in case of a loss, theft or accident. Most standard policies will provide coverage for damage to your home and items in your home. Homeowner's insurance is required by mortgage lenders. Standard policies include coverage for structure of home, coverage for personal belongings, liability protection, miscellaneous living expenses and often even medical payments in the event that you are injured while you are in your home.

Health

Health insurance coverage offers many different types of policies and covers small businesses, international employees, travelers, long-term care and short-term wellness care. Accident and Health Insurance are types of coverage that pay benefits, sometimes these payments also include reimbursement for loss of income, in case of sickness, accidental death, or accidental injury.

Health Insurance provides payment of benefits as a result of sickness or injury, such as Major Medical Expense Insurance. Major Medical Expense Insurance is in place to provide benefits for almost all types of medical expenses and cover up to a high maximum benefit, such as $250,000 or higher after a usually substantial deductible. The deductible is usually several thousand dollars.

Disability

Disability insurance pays a monthly income to the policyholder who cannot work because of an illness or accident. Most employers offer disability insurance benefits up to a percentage of your income. There are state regulations that require many employers to provide health insurance to their employees, but this law varies by state.