Insurance protects you (the insured), your family and businesses from financial losses due to unexpected events. There are numerous insurance options available and it’s essential you understand them before signing up.
1. Auto insurance is essentially financial protection against events such as accidents, theft or damage to your vehicle. This protects you from the cost of any repairs, replacements and accidents.
2. Health Insurance
Medical Expenses: Health insurance pays for all the medical expenses of the insured which are incurred as a result of an illness. It typically includes:
Medical Services-This plan helps to pay a portion of your medical bills, such as doctors visits and hospitals stays.
Prescription Drugs: It covers the cost of prescription medicines.
3. Home Insurance
Home insurance – Fire, theft and natural disaster coverage for your home along with the possessions inside. Types of home insurance include:
Dwelling Coverage: Dwelling coverage can pay the price to rebuild the construction of your house and any connected systems corresponding to storage or decks.
Personal Property Coverage: Personal property damage pays to replace the contents of your home, like furniture and clothes.
4. Liability Coverage: This coverage is for damages or injuries you are legally liable for guest slip and fall on your property.
5. Life Insurance:
If you pass away, having life insurance secures your loved ones financially. Shall generally comprise of two basic types,
Term Life Insurance — Provides protection for a certain period of time, typically 10–30 years. This means if you die during this time period, then your loved ones get a death benefit.
Permanent Life Insurance: Permanent Life Insurance covers the entire life and a money value component that grows over time. Types of permanent life insurance are whole life, universal life and valuable life insurance.
- Disability Insurance: Disability insurance is an income replacement insurance which covers for insured when unable to work due to disability or illness. It typically can be:
Short-Term Disability Insurance: Short-term disability insurance offers insured benefits for a limited period of time, usually up to six months after a waiting period.
Long-Term Disability Insurance: Long-term disability insurance offers insured benefits for an extended period, potentially until retirement age, after a waiting period.
Conclusion
When you understand the different types of insurance, you will protect yourself and your loved ones, your assets against unforeseen circumstances. Whether you are registering for auto insurance, health insurance, home insurance, life or disability insurance, assess your needs, evaluate the coverage options and select policies that gives you adequate protection. When you gain a clear understanding of these types of insurance and their purposes, you will make informed decisions to safeguard your financial future.
