Explaining types of insurance
There are numerous insurance products on the market today, and even though not all of them are needed by everyone, it is easy for you to find one that is suited to your needs. The following is an outline of the main types:
Life insurance is a type of cover that helps protect those who depend on your pay check. For example, in the event that you die prematurely, it will provide them with an income to replace yours (unless they can live comfortably without it), and can also cover legal, medical, and funeral costs in case the family savings are not adequate. The money is usually paid in lump sum by the life insurance quote company.
Home insurance is an insurance cover that is usually divided into two; namely contents and buildings insurance. If you are wondering about the differences, the latter insures your home or business’s brick and mortar aspect from damage caused by events such as floods and fires, while the former covers your belongings in unexpected occurrences such as theft.
Car insurance is designed to protect you from financial loss in the event that you have an accident, and typically covers liabilities to the involved parties such as injuries, property damage. It is also instrumental in cases where accidents involving uncovered motorists occur and you or a member of your family gets injured. The insurance options available usually vary from company to company.
Travelling overseas is a venture that has potential unexpected occurrences such as flight cancellations, and medical complications while in another country. This is where travel insurance comes in. It is a short term cover that takes care of all your medical expenses while on the trip, and provides compensation if there are travel interruptions, which can cause additional costs and inconveniences such as booking a hotel for the night, travelling to and from the airport, and more. It also covers theft of valuables, and damage to baggage.
Health insurance covers an individual’s surgical and medical expenses. Depending on the type of policy, you can pay the medical institution out-of-pocket and have the money reimbursed to you, or the insurance company can make payments directly to the hospital or clinic involved. In countries that do not have universal health care coverage, health insurance is usually included as an employment perk.
Retirement insurance is designed to help people who have already reached retirement age to enjoy a quality life, similar to the one they enjoyed while working by providing them with a secondary income. Some of the options usually bundled with it include travel coverage, home insurance, and life insurance related plans. In some countries, it is provided as a benefit to retirees by the government, but if you are not so lucky, it is advisable to take it up before retirement.