Insurance and its Types

September 21, 2018 0 By John

Insurance and its Types

We are living in the world where things come and go. Many things happen to us every day. We have to face both good and bad things. Large numbers of insurance companies are offering insurance. Insurance meaning in simple word is to protect our financial loss. We suffer many kinds of risks. Sometimes we lose our financial balance, property and sometimes life. To get advantage of loss, companies offer us backup in the form of insurance. Every insurance company has specific insurance policy. Companies work according to these policies. However, there are many types of insurance like life insurance, auto insurance etc. Let us tell you about the types of insurance and their advantages.

Types of Insurance

We are discussing insurance meaning and types in this article. So, here is the list and explanation of types of insurance.

1-    Business Insurance

Most of the people know about home and auto insurance but only few people know about business insurance. It is very important type to discuss. Same as every other field, businessman suffers up and down in his/her business. When business is gaining stability, there is no problem to businessman. But when there is loss in business, it becomes very difficult to cover the loss.
Business Insurance helps businessman in this situation. When business is in loss, insurance company helps and provides those savings or funds to businessman that are invested by him/her for insurance. In this way, business loss could be covered. This is how insurance is important for any kind of business.

2-    Insurance of Life

Life insurance is one of the very common insurance among all. People usually avail the benefit of life insurance. In this type, we have to pay a small amount of the money after specific time. This insurance provides benefits after the death of that specific person. Every person has its family. To maintain family’s life after his/her death, he/she get advantage of life insurance. Life insurance offers funds for children’s education, final expenses, family emergency funds or any other need of family. In simple words, life insurance is beneficial for the whole family.

3-    Car Insurance

It is very common. Most of the people avail car insurance. Almost every person has its own car. When we drive, we are at risk of getting into car accident. So, people don’t want to take any chances over property and injury. In this type, insurance offers the payment of any damage to your car or other’s property because of your car. If you get injured in car accident, insurance will pay for your health. In simple words, insurance will cover all of your expenses. It will also pay you to fix your car or buy new one. So, you can get huge advantage of car insurance. Therefore, go and get your car insured.

4-    Health Insurance

We are living thing on this planet. We are human beings. There are many facts about us. We suffer a lot of diseases because of pollution and different other things. To cure diseases, there are large numbers of high quality hospitals. But if we go to advance and big hospitals, we have to pay a large sum of money for our treatment. This is so tough for anyone to pay huge money for treatment. Health insurance is a thing to help everyone out here. When we get health insurance, we pay small amount of money after specific interval of time.
When we get sick or get into any other disease, we can go to any big hospital. Our health insurance will pay all our medical expenses. Yes, until the completion of our treatment, health insurance will be responsible for medical expenses. This is the reason why most of the people prefer health insurance over other.

5-    Insuring Travel

Like car, medical and other insurance, you can also insure your travels. Large numbers of people travel from one place to other place in their holidays. In other countries, any accident could be happen to the visitors. Cancelation of the flights, theft or medical treatment in other country can cost the foreigners a lot. So, to save yourself from such loss, you can insure your travel. In travel insurance policy, you will be free from any extra loss or spend of money. In any loss, cancelation of flights or medical treatment, travel insurance will pay for you. It means that this insurance is very helpful and beneficial for travelers.

6-    House Insurance

Everyone in the world lives in a house. People love their home. Without home, people can be called as homeless. So, house is everything for people. But sometimes house are burned and destroyed because of fire and tornado or flood. It means houses are also at risk. To make yourself secure, you can insure your house. House insurance offers rebuilding or money equal to house cost. You can get your house rebuild for living or get any other apartment with the help of house insurance.
On the other hand, if we cannot pay our loan at the specific time, house insurance covers the bank. In this way, we can save our house.

7-    Insurance of unemployment

Many people suffer unemployment due to many reasons. If you were an employer and suddenly fired by the company, you can get advantage of unemployment insurance. This insurance is also known as the temporary source of income. It pays some amount of money at weekly basis. You can feed and clothe yourself with the help of unemployment insurance. If you were eligible for the job but you were unemployed, only then you can get this insurance. If you resigned by yourself, then you cannot avail this insurance. In simple words, you are eligible for unemployment insurance only if you were fired by the company. If you were fired because of any disobedience or misconduct, you can also be considered as ineligible of this insurance.

8-    Insuring pet

Most of the people love to have pets. People keep dogs, cats, parrots, horses and many other beautiful animals as their pets. Like human, animals also need treatment to stay fit and healthy. People have to take their pets to veterinarian for checkup almost every month. Like our medical expenses, veterinary expenses are also very high. So, most of the people cannot afford these expenses. In this situation, insurance of pet is compulsory. Pet insurance offers to pay all the veterinary expenses for the pets. Yes, you can keep your pet without any fear of spending money. When you get your pet checked up from any licensed vet, you can send properly filled pet insurance form to insurance company. Insurance company will send you the money spent by you for the pet checkup.

These were some of the types of insurance. We cannot ignore the importance of insurance in our life. These types clearly reveal the insurance importance.