Learn of the meaning of different types of insurance policies people buy for coverage of their auto, health, life, income protection, travel and more.
Types of Insurance Policies and their Meaning
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 insurance that people buy?
The Different Types of Insurances
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 insurance types follows:
- 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 or at the end of a fixed term.
- Travel: Covers medical cost incurred while travelling.
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.
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 homeowners insurance coverage however does not restrict compensation to outsiders. It can include liability insurance or renters insurance coverage. Renters insurance cover is a must if you rent your property. Homeowners insurance also covers damages of family members.
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 disability insurance policy therefore covers the loss of income to the affected person. Income protection insurance is a very important cover to have.
A Life insurance policy pays out a sum of money either on the death of the insured person or after a set period. One chooses his coverage from the different types of life insurance 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 insurance life insurance, such as universal life insurance policy. It is good to know that life insurance premiums do not generally attract income tax.
A travel policy that covers losses incurred while travelling. Coverage includes medical cost, trip cancellation, flight accident and other losses. This can cover local as well as overseas travel. One should not travel without such insurance because anything can happen while on your journey.
Other Insurance Policies
Auto insurance 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 auto insurance company agrees to pay for losses as defined in the policy. The classic car insurance covers damages to the vehicle as well as third party liability.
Many persons resent insurance for various reasons, some because of the cost and others because of settlement issues. Insurance coverage is however important. It is a good means of recovery from loss or damage to property or personal possessions. In some cares however, such as with property insurance, it is bank requirement for mortgage approval. You should consider getting necessary coverage today. You can contact Insurance Advisers to learn more. Check out some useful books on insurance meaning and types at amazon from which you can learn much more about the different types of insurance products and services. Final expense insurance with the top companies offering burial insurance for seniors There’s an Agent in your area that has access to the best state-regulated programs. Be sure that with the texas insurance adjuster license you will get the job you will be satisfied with.