There are many types of insurances available at present. The ‘type’ refers to the purpose of the insurances serves. Thus, health insurance is meant to protect health from the risks to health. When there is any probability of risk, insurance comes to rescue one from the risk of hazard. For example, fire, marine, automobile, life, health, etc. Now we will see some of the important insurance types.
Life insurance provides monetary benefit to the policyholder or to their family or the beneficiary dependents upon the agreement. Life insurance is offered according to risk involved and duration for which the policy needs to pay. The following forms of life risk are offered.
- Term insurance: Term insurance enables one to buy insurance at specific price and for a specific period. If the insurer die during the term, beneficiary will get the amount.
- Whole life insurance: Whole life insurance is similar to the term insurance, but the policyholder has to pay the premiums to his/her whole life. Some companies may invest those funds or give the dividends to the policyholder according to the company policy structure.
- Universal life insurance: It is similar to whole life insurance. The policyholder has the flexibility to shift the money between life insurance and the savings account. Premiums, death benefits and savings elements are reviewed according to the policyholder’s circumstances.
- Variable life insurance: Variable life insurance gives permanent protection to the beneficiary. It allows the beneficiary to invest part of premium into the other portfolio like stocks, bonds, equity funds, etc.
Automobile insurance is known by different names like auto insurance, vehicle insurance, car insurance, etc. Its aim is to protect the policyholders against the financial loss when the event of an incident. The events can be theft of vehicle, damaged in accidents, etc.
Health insurance is provides the benefit to policyholders to cover the medical expenses. Dental insurance is to cover the expenses relating to dental treatments. This might be in the form of reimbursement of expenses to the beneficiary, or the insurer paying the service provider (hospital, etc.)
Marine insurance covers the risk to ship, ship hull, cargo and freight. It covers the risks like ship attacked by enemies, collision with rock, fire and capture by pirates, etc.
Fire insurance is to cover the risks from fire. It should be an individual property or company or any other thing.
Property insurance is to protect from the risk of loss of property. The properties like agriculture crop, animals in business, machines, etc.
Disability insurance is to cover a person when the policyholder does not have the income because of a disability of any sort. Disability insurance provides part of wage that the beneficiary was to get if they were on the job.
With disability scheme the insurance company will pay monthly installments to the policyholder according to the plan purchased by them.
Insurance for different purposes is being offered by insurers. There are so many other types of insurances available by a number of companies. The policy terms and conditions vary across insurers, and according to local government laws. Businesses and people who are planning to purchase insurance can choose an insurer according to their requirements.