Learn of the different types of insurance policies people buy for coverage of their cars, homes, health insurance and more.
All too often, people want insurance but do not understand what coverage to buy. The different policies confuse people many at times. Allow me therefore to describe the different policy types that people buy?
The Different Types of Insurance Policies
There are many different policies in existence today. Insurance-advisers.com is pleased to provide information on some of these issued by many insurance companies. A listing of the six main ones follows:
- Auto: Coverage for car, van, trucks, etc.
- Health: Coverage for medical expenses.
- Home: House and contents coverage.
- Income: Covers loss of income due to injury or illness.
- Life: Pays upon the death of the insured or at the end of a fixed term.
- Travel: Covers medical cost incurred while travelling.
This is a type of insurance that covers damages resulting from motor vehicular accidents. It is a contract between the the owner (policy holder) of a motor vehicle and the insurance company. The car insurance policy holder agrees to pay a premium. The insurance company agrees to pay for losses as defined in the policy. This type of policy covers damages to the vehicle as well as third party liability. Read more.
The typical health policy provides a way of paying for medical cost. It protects one from having to pay the full cost of medical services when injured or sick. The individual chooses a plan most suited to his needs. He agrees to pay a certain premium on a monthly basis. Some companies also offer group health cover . Read more.
This type of coverage is a packaged policy. It covers the cost of damage to building and contents. Additionally, it covers loss in respect of persons who suffered damage in the insured property. Such a policy however does not restrict compensation to outsiders. It also covers damages of family members. Read more.
This type of policy also refers to permanent health insurance. It provides income protection for employees. An insured person may become incapacitated due to injury or illness. Such a policy therefore covers the loss of income to the affected person. Read more.
Life insurance pays out a sum of money either on the death of the insured person or after a set period. One chooses his coverage based on his goals and needs. Term life insurance generally provides protection for a set period of time. Permanent life on the other hand provides lifetime coverage. There are various types of life insurance. It is good to know that life insurance premiums do not generally attract income tax. Read more.
A travel insurance plan that covers losses incurred while travelling. Coverage includes medical cost, trip cancellation, flight accident and other losses. Travel insurance can cover local as well as overseas travel. One should not travel without such insurance because anything can happen while on your journey. Read more.
You can contact Insurance Advisers to learn more.