Nowadays Insurance is the most important in our life. All companies have different types of policies and all of them quite good. Which company is best for us depends on our lifestyle.
Types of Insurance
Insurance companies provide different types of insurance. Every person has to take some kind of insurance as per his needs. Commercial Insurance Commercial insurance is like Health Insurance where companies take care of a business’ clients. Companies provide you with affordable and customized insurance policies for your business.
Emergency Insurance Emergency Insurance is compulsory in any country. It is better to have it but you should not rely on it completely. It is only useful if you have an accident or if someone gets sick. Indemnity Insurance This insurance covers all the financial problems and loss of money or property. You can hire an attorney to file a lawsuit if there is any financial loss.
Here are the types of insurance that can be purchased by people of all classes of people. Liability insurance covers the damages caused by your actions to other people or property.
Hardship insurance covers the financial problems of the individuals Travel insurance covers the expenses of a traveler Collision insurance covers damages to your vehicle Home Insurance covers the damages to your home from the external elements.
Disability insurance covers the expenses of someone unable to perform their duties because of an accident or an illness. Auto insurance covers damages to your car from other people Marriage Insurance covers the expenses of a couple in case of divorce Other coverages are included in the basic home, health, and life insurance policies.
Why do we need Insurance?
Having insurance is the best way to save you from a huge financial burden. We need insurance because without insurance we are not covered for all our needs. In the future, if we are injured or get sick, we can’t get proper medical care or even a hospital stay without an insurance company paying for it.
It may cost a lot, but it is much more affordable than paying a huge medical bill. Also, many people believe insurance is unnecessary. One reason is that they think they can get to the doctor without it. While that is true for a few simple ailments, we are not talking about that. Doctors have to deal with medical emergencies all the time and some cases will cost more than we can handle. Furthermore, health conditions change and sometimes cost more to treat than expected.
Auto Insurance
If you are a driver you are required to get insurance on your car. Whether your car is brand new or it is 10 years old, your insurance will be different.
No. of Insured Seats: The minimum is 3. However, the premium will vary with the years of the vehicle, type of car, the number of previous accidents, etc. The car should be of the same model and year as the owner of the car.
No. of passengers: Vehicles with 4 or more seats should be required to get 2 cars insurance. Vehicles with 3 seats or less require only one car insurance policy. How Much Insurance Do I Need? Basic insurance will cover your vehicle and other things that are listed in your policy. Basic insurance will usually be a simple form and the only thing you need to fill in are the details regarding your car.
Home Insurance
A homeowner's insurance covers liability to third parties caused by damage to the insured's property, as well as personal property and loss or theft of objects used for personal living, the coverage also includes living expenses while the home is uninhabitable.
Travel Insurance A travel insurance is a type of insurance policy that covers loss of baggage, transport problems, delayed flight, medical expenses, travel delays, and more. Most insurance companies offer separate policies for frequent travelers. Car Insurance Car insurance is one of the most important parts of buying a car.
To own a car you will have to pay some amount for the insurance. However, if you are not covered for car insurance by your house, you should insure your car at the same place.
Health Insurance
health insurance is the cover provided to the employees of a company to cover the medical expenses if the person is physically or mentally incapable to work. As the employer cannot be responsible to pay the medical expenses of their employees, having a health insurance policy in place allows the employer to reimburse their employees the expenses of treatment or hospitalization, which is covered under the insurance policy.
Property Insurance Property insurance is the cover provided by a property owner to cover the liability and expenses if the building, home, or land is damaged by an act of nature or people. Usually, Property insurance is not required for a house or apartment.
Life Insurance
These are plans that cover the family from the day your family member has died until their family inherits the policy. This is the cheapest and the most basic of all the plans. Health Insurance This type of insurance covers the employee and covers critical illness that you might face in your lifetime.
This also covers the dependents that will be living in your house after you die. Lifestyle Insurance Lifestyle Insurance covers you from all the incidents that might disturb you, might destroy your work or you might kill your loved ones. Motor Insurance Motor Insurance helps you to make sure that you can have the freedom to drive, and even own the car.
Home Insurance Home Insurance covers your house, protecting it from any damage, and even from any bad elements which may happen.
Types of Companies
There are so many types of insurance companies that you have to choose carefully the one which best matches your needs and your pocket. Auto Insurance – in the USA insurance companies that offer auto insurance can be divided into three basic types:
Title Insurance Company: Lenders insurance agency that owns the title of the car for the borrower and can only insure the car to title loans. The reason being, the company offers the best terms for borrowers.
Third-Party Liability Insurance Company: A company that takes the claims from auto accident victims. The company can deal with only the claims from car accidents and not from fire.
Life Insurance Company: The insurance company that provides life insurance coverage for people.
How to choose the right policy
We can compare insurance companies and see their prices and features. But it is not enough. Insurance companies have certain standards which make comparing them difficult. All of them are similar, but they have a different level of strength and of investments.
So, the best insurance company is not the best company in general. For example, when we compare life insurance policy with term life insurance policy, they are very different. One policy is for our death and the other is to cover us while we live. The same applies to the home insurance policy, car insurance policy, and many other types of policies.
We can compare Insurance companies because some insurance company is offering a very cheap policy and other is very expensive.
Conclusion
This is just the start of life insurance. No need to be complicated about this. There are a lot of things you can do to make it less complicated. If you want to make an insurance policy and start protecting your family and loved ones for the future, then have a look at the above-mentioned article.
