Today I want to discuss in brief about the basic 6 types of insurance. These all insurances are very essential to our life.
1. Auto insurance (also known as Car insurance) is a type of insurance purchased for motor cars, motor cycles, trucks, and other small and heavy vehicles. It is compulsory to use in every country for taking protection against the losses against traffic accidents of the motor vehicles.
2. Life insurance is a contract between the insurance provider and the insurance policy owner. Here the insurance provider agrees to pay a sum of money against the insured individuals' death or other event related to life, like critical illness etc. But the insurance policy owner needs to pay a stipulated sum of amount as an insurance premium at regular intervals.
3. Health insurance (also known as Medical insurance) is a type insurance that pays for medical expenses of a person. It is also covers long-term nursing, custodial care and sometimes even disability. The insurance can be provided by a government insurance concerns or private insurance companies.
4. Home insurance (also known as Homeowners insurance) is a type of insurance program that covers private homes. It is an insurance policy which also covers different personal insurance protections, such as loss of one's home and its contents, loss of other personal possessions of the homeowner.
5. Disability insurance is a type of insurance which insures the beneficiary's earned income against the risk that disability will make working impossible. The insurance also includes paid sick leave, short and log term disability benefits.
6. Liability insurance is a part of general insurance program for financing against risk. Individuals or companies can face a common peril forms a group and creates a self-help fund out of which to pay compensation should any member incur loss. The modern system relies on dedicated carriers to offer protection against specified perils in consideration of a premium.