What Are the Different Types of Insurances?


The life and property of an individual are surrounded by numerous risks that expose it to danger, disability or even destruction. In most cases, the chances are financial losses or complete damage. For this reason, insurance covers turn out to be paramount as they help in recovering some of the lost properties, if not all. In other words, an insurance cover helps transfer some of these risks to an insurance company. The insurance company receives premiums to safeguard specific properties through an insurance cover or agreement. In case of any damage or loss, the insurance compensates for the loss or covers parts of the damage as agreed. However, the coverage depends on the kind of agreement. The following are some of the most common contracts provided by different insurance companies across the globe.

Life Insurance

As the name suggests, this insurance cover ensures a person’s life. People buy life insurance covers to ensure that their dependents are financially secured in the event of ultimate demise. In other words, if you are the sole breadwinner of a family, you need to buy such a cover that will protect your family even after your death. In most cases, the compensation is done once the agreement’s policy expires. However, you need to be careful when filling in the information of your beneficiaries, as this has been the source of fights among many families.  

Health Insurance

This is one of the most common types of insurance cover adopted by society. The insurance covers cater for both medical and other costs involved in treating a specific condition. There are different kinds of health insurance covers. Most of these covers depend on the type of disease or ailments being covered. In other words, you can buy an insurance policy that covers specific conditions or pay certain premiums towards a particular disease. Most of these policies cover the hospitalization charges, the medication and the treatment costs involved. The insurance cover is most familiar as there has been an emergency of new diseases daily. People have succumbed to various diseases due to a lack of proper treatment. However, with such policies, one is guaranteed to receive different kinds of therapy with minimum or no extra costs incurred.

Vehicle Insurance

The number of vehicles being used in various nations keeps on rising. Nowadays, affording a car is no longer a nightmare. However, you can pay for a specific car and be your driver with a few coins. However, it is mandatory to purchase an insurance cover and insure your car against any form of accident. In addition, most of these insurance covers depend on the kind of vehicle you are guaranteeing. Depending on the value of your car, the insurance company might dictate the number of premiums you will be paying each month. Some policies only compensate for the car damages, while some, such as the third-party liabilities, only covers other damages other than the owner of the car. Therefore, as long as you can afford a vehicle, please make a point of insuring it and covering it against accidents and other natural calamities that can affect your movement at any time. 


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