Insurance is one of the necessities right now for every individual. Getting one is an easy task but before you get insurance, make sure that you know the coverage of each insurance. But what are the types of insurance coverage?
There are six options for can insurance coverage. These are the collision coverage, comprehensive coverage, auto liability coverage, personal injury protection, uninsured and underinsured motorist coverage, and medical payments coverage. Depending on your location, some of the mentioned coverages are required, while some are just optional and it’s your choice if you want to add additional coverage.
Getting insurance is a must for car owners. Why? Because risk is everywhere whenever you drive your vehicle. Whether you drive going to work, going on a vacation, or anywhere when you are using your car.
There are two types of insurance available in the market:
- Life Insurance
- General Insurance
What is Life Insurance?
As the word itself, life insurance is a contract between you and an insurance company that offers and supports your financial obligations in case of disability or death. There are some companies offering financial support after a certain period, for example after your retirement. In short, life insurance will secure you and your family’s finances in case you retire or your absence.
Life insurance companies are also offering different payment policies depending on your capability. While most of the life insurance owners are paying the policy every month, some even managed to purchase a life insurance policy in one go. These individuals are known as premiums in which insurer assures your finances in the event of disability, death, or at a set time.
What is General Insurance?
In general insurance, insurance companies will be giving you financial compensation and support on any loss other than death. Which means that you’re ensured on everything except for your life. Some of the best examples of general insurance are loss due to liabilities such as your car, house, travel, and health. Insurance companies will assure you that they will be paying you a sum assured to cover the damages to your properties, medical treatments, and even financial problems during your travel.
What are the available types of general insurance?
As mentioned above, general insurance comes in different forms. These includes:
- Motor Insurance
- Health Insurance
- Fire Insurance
- Travel Insurance
- Property Insurance
Motor insurance is available if you own a car or any vehicle that you want to be assured. Owners of motor insurance have peace of mind that their insurer will support and help them in case their vehicles have been damaged due to accidents, theft, or natural calamities. In most countries, you won’t be able to renew your vehicle’s registration if you don’t own motor insurance.
This general insurance type usually covers medical costs such as medical bills, treatment of critical illnesses, hospitalizations, and more. In some countries, health insurance companies can give you a set of an amount to cover your medical expenses, while others will only support you by reimbursing the medical costs or bills during your treatment.
Fire Insurance covers or compensates for the damages that were caused by fire to your goods or properties. Insurer usually offers replacement, repair, or reconstruction of the damaged properties.
If you’re one of the individuals who love traveling or frequently traveling due to the nature of your work, you must have travel insurance. With travel insurance, you’re assured that someone will help you pay any financial liabilities for any unexpected medical or non-medical emergencies when you’re out of the country or within the country.
Property insurance, also known as home insurance, covers and supports you for damage to your home due to natural calamities such as typhoons. In addition, it will also cover any man-made disasters or other unexpected events for your property.