While studying the types of insurance and definitions it is necessary to know the actual intention behind taking an insurance policy. There can be several types of insurance and definitions can vary depending on those types.
Insurance is nothing but the promise for getting money whenever it is required. No one can guess the future and even no one knows what kinds of losses can appear suddenly into the near future. In such critical situations insurance acts as the helping hand that pays all or some portion of the required amount of money.
There are some major types of insurance and definitions settled for them can also vary a lot. Types of insurance are given below.
1) Health insurance
2) Car insurance
3) Property insurance
4) Disability insurance
5) Business insurance
6) Life insurance
Besides these, there can be numerous other types of general insurance. All kinds of non-life indemnity plans are called as general insurance. General insurance includes mortgage insurance, vehicle or motor insurance, travel insurance, reimbursement insurance etc.
Let’s take a deep look on the common types of insurance and definitions for them are also given.
Life insurance directly relates to the death. These insurance policies need to be taken at the time of birth or during the life period. Suppose an individual has taken life insurance and he/she dies accidentally then life insurance offer money to his/her family members to help recover the loss. This money gets offered for the supporting purpose.
Car insurance is defined as the insurance taken on the car or any other vehicle. In this type, “insured” person receives money if his/her car undergoes the unforeseen accident. The insurance company pays the policyholder to recover the amount of money that has spent in remodeling the car. If the car has gone through large amount of damage then in many cases insurance companies provide the half amount of car.
These kinds of insurance policies are the best choice for those who possess own house. No one can guess the critical situations carried out by the nature itself such as earthquakes, floods etc. If the house, office or any other owned place is secured with the property insurance then insurance companies pay the amount of money that is required for rebuilding the house.
This insurance is considered as one of the most common types of insurance. Many people opt for health insurance. This type of insurance is highly beneficial to those who repeatedly go through the medical check up processes. Complete medical check up is mandatory before applying for this type of insurance. Anyone who is fit and healthy can apply for the health insurance. Insurance companies repay the premiums by means of medicine bills, hospital bills and other medicinal charges.
These are some of the common types of insurance and definitions given for them can vary depending on the situation. Insurance plays the crucial role in day to day life. It helps into the serious situations.