Types Of Insurance Coverage

Everybody needs and insurance policy and there are different types of insurance coverage for different purposes. There are lots of uncertainties in life and it is very important to have a form of coverage to help cover against such uncertainties. This is because some events may occur when you are not able or ready to handle them, which may put you in a difficult situation. But with an insurance policy, you are assured of maximum protection and coverage giving you peace of mind. The following are the different types of insurance coverage available for different situations and different individuals.

Motor vehicle Insurance coverage

This is one of the most common types of insurance coverage. With vehicle insurance, you are insured so that in the event of loss or damage through accident, the insurance company will pay the stated compensation. A vehicle insurance contract can be arranged by the manufacturer or the car owner. In this type of insurance coverage, the car is insured against theft or accident and the indemnity is in form of lump sum payment keeping the car back to its previous condition before the incident.

Life insurance coverage

This is unarguably the most important of all types of insurance coverage. A life insurance policy gives the policy holder and his family financial security in the event of the demise of the policy holder. Usually, the bread winner is the most suitable person to go for these types of insurance coverage since his death will severely affect the income of the entire family. There are three types of life policy: term life coverage, whole life coverage, and endowment policy.

Liability Insurance

This is a business insurance whereby one insures himself against possible liability on the malfunction of a product. These types of insurance coverage can be undertaken be business organizations and companies that produce goods that can be harmful or unsafe to consumers.

Medical and Health Insurance

This is equally one of the most important types of insurance coverage. Everybody needs health insurance since our bodies are not always healthy. With health coverage, the policy holder pays periodic amount of money (known as premium) which will cover for all medical expenses accrued at unforeseen times. The insurance coverage can either be for a single person or for the family.

Burglary/Fire insurance

Some insurance companies will treat fire and burglary insurance differently while some others combine the two into one policy. Burglary insurance deals with the insurance of home and office buildings against theft or burglary incident. On the other hand, fire insurance insures the home, office building and other facilities against the incidence of fire. These types of insurance coverage can be very beneficial to people who have possession they don’t want to lose or who have high risk of fire incidence.

Travel Insurance

Travel insurance is increasingly becoming very common among insurance policy holders because of the increasing needs of travelers to seek protection against travelling uncertainties. Travel insurance can either be a personal travel insurance or business travel insurance. Usually, the reason for the journey and the duration of the journey determines the premium the policy holder has to pay.