8 Different Types of Insurance are listed and each is explicated in this article for your perusal. You will find it informative.
How many types of insurance
Insurance policies are used to evade the risk of financial losses, that can result from injury or danged. Insurance aims to protect or cover the property of the client from any unanticipated damage. This article will explore 8 basic types of insurance that should never be avoided.
Read Also: How To Save Money Through Insurance Company
1. Auto Insurance
This is a type of insurance that has driving coverage. In most developed countries, auto insurance has become mandatory and highly beneficial when the driver encounters certain risks.
Auto insurance tends to be fortunate when the auto insurance can pay for the damage to the vehicle at ease after any risk or damage to the vehicle.
Auto insurance is divided into other subsets such as liability coverage, uninsured/underinsured motorist (um) coverage, and personal injury protection (pip).
I. Liability coverage. This type of auto insurance makes the payment for property costs especially when the damage was caused by the driver.
ii. Uninsured/underinsured motorist (UM) coverage. If an uninsured or underinsured driver hits your car, this coverage offers insurance services by making payment for you and your passengers’ medical expenses within a short period of time.
iii. Personal injury protection (PIP) seeks to provide insurance services to the individual like child care especially when the client cannot perform his duties after the incident.
2. Home Insurance
Home insurance is structured for the good of the customers making reconstruction very easy in cases where the home is damaged or destroyed. Home insurance policies have various categories such as:
I. Dwelling coverage: guides the structure of the client’s house from unanticipated events like fire, wind, theft, or vandalism by paying for repairs.
Read Also: Top 20 Insurance Companies in Nigeria
ii. Personal property coverage: guides the client’s personal properties like furniture, appliances, and clothing.
iii. Liability coverage: it makes a payment for injuries or property costs that are unintentionally damaged.
3. Renters Insurance
This type of insurance assists the client in swapping electronics, furniture, and clothing that are taken or destroyed due to a fire outbreak.
Renters’ insurance comprises personal property coverage, liability coverage, and other extra or marginal living expenses coverage.
4. Umbrella Insurance
Umbrella insurance can give marginal liability insurance when any unanticipated disaster occurs. This type of insurance tends to cover the extra cost ignored by other insurance coverage.
5. Life Insurance
Life insurance policies can be temporary or permanent. If it is temporary, it is called term life insurance where the insurance coverage only lasts for the clients during a period of time, especially during their lifetime and if it is permanent, it is called permanent life insurance where the insurance coverage lasts even after the demise of the client. Generally, life insurance is one medium of replacing an individual’s income when they die suddenly.
Read Also: Top 10 Health Insurance Companies in Nigeria
6. Health Insurance
Health Insurance specially addresses the medical bills of the client. The issue of health can be regarded as one financial leakage that occurs throughout one’s lifetime.
Health insurance plans serve as subsidies and provide the client satisfaction in the payment of bills provided the terms and conditions of the insurance coverage are meant.
One of the conditions of this insurance coverage is that the client must pay a higher deductible before the insurance coverage begins and the higher the value paid, the lower the monthly health insurance cost.
7. Disability Insurance
This type of insurance coverage also covers health challenges like arthritis, cancer, diabetes, and other esteeming health-related issues that can cause a malfunction in the body of the client.
This insurance is not only for the disabled but is for a period of time when the client is incapable of work. There are two main ways to get disability insurance: group disability insurance activated from the client’s working environment, individual disability policies, and other social security disabilities with insurance benefits.
8. Long-Term Care Insurance
This type of insurance coverage is basically for the aged group of people, especially for old men and women ranging from the age of 60 and above. Long-term care insurance is majorly for the aged who are neglected and need assistance in the course of living.
Read Also: Reasonable Expectation Test in Insurance
The insurance policies go as far as providing a private nursing room and carefully taking care of the client. In other words, long-term care (LTC) insurance can also assist in making payments for as in-home care expenditures.
Life can be unpredicted at any point in time. Insurance companies are designed to make life easy with their various types of insurance packages suitable for the interest of the client.