Types of Insurance
A Insurance Article Contributed by Manoj Kumar
What is an Insurance Policy?
Insurance plans offer financial protection against different forms of risk associated with your life, be it with regard to health, home, vehicle, or any other possessions. The person who seeks financial protection is called the 'Insured' and the person offering the service is called the 'Insurer'. In return for a payment called 'Premium' insurance lenders agrees to provide comprehensive coverage to the insured against losses covered within the insurance agreement.
This relationship between the insurer and the insured is written down as a legal contract known as 'Insurance Agreement' or 'Insurance Policy'.
Different Types of Insurance Policies
Prior to purchasing an insurance plan it is essential to ascertain the type of insurance plan you require. There are different types of insurance plans available depending on the purpose for which you require insurance coverage.
Take a look at some of the different types of insurance:
* Health Insurance Policy - Provides for medical bills incurred because of any health ailments such as sickness or accidents.
* Life Insurance Policy - Provides coverage benefits in the event of the death of the insured person. This type of insurance policy is taken to act as income supplement in case of sudden death of the earning member of the family.
* Automobile Insurance Policy - This type of insurance may be auto insurance or car insurance and is one of the most common type of insurance opted for. An automobile insurance offers protection against loss or damage to the automobile that is insured as well as the driver. Auto insurance also provides for any legal liability claims that may arise in the event of accident involving the insured vehicle.
* Property Insurance Policy - Such insurance policies cover for risks associated with your home and other property. These insurance policies may cover for loss due to fire, theft, earthquake, weather changes, etc, depending on the extent of coverage opted for.
* Casualty Insurance Policy - This type of insurance may be taken to provide for expenses that occur in connection with any accident. It need not necessarily be tied with any specific type of property or accident.
* Liability Insurance Policy - Offers insurance protection with respect to any legal claims against the insured.
* Financial Loss Insurance Policy - Offers insurance protection against various financial risks including risk associated with financial bonds such as Fidelity bonds, Surety bonds etc.
* Title Insurance Policy - Covers for expenses incurred in relation to any research conducted on any public records in relation to title regarding real property. Such insurance covers the above expense in relation to mortgage or other real estate transactions.
* Credit Insurance Policy - Covers for loan amounts in case certain specified conditions occur to the borrower (Such as loss of job, disability, death, etc) as specified in the insurance agreement.
Insurance Companies
It is essential to exercise caution while deciding the insurance company with which to take your insurance policy. Insurance companies may be either -
* Life Insurance companies that specializes in selling life insurance, annuities and pension products.
* General Insurance companies that sell all types of insurance policies depending on your requirement.
