The 6 key types of insurance policy explained
In our everyday life, we face so many uncertainties. And these uncertainties cannot be foreseen by human beings. In a nutshell, the outcome of future occurrence is hard to ascertain. That means risks taking is part of daily lives. But there are needs to mitigate the risks facing us all in this life of uncertainties.
Therefore, it is necessary to find the appropriate means to curb these uncertainties. One of the best ways of mitigating these challenges is by getting insurance policy that will cover the aspect of life that is highly risky to bear alone as an individual or entity.
On that note, there are so many insurance options available for everyone to take up. Choosing the right one for yourself or your business is another challenge to go through. However, this challenge is not as hard as not having an insurance policy at all.
In this article, I will explain 6 different types of insurance policies that one can choose from when thinking about taking up insurance policy.
1. Life insurance
This is a form of insurance policy where some certain amount of money is paid after the death of an insured person or after a certain period of time. This insurance helps safeguard the livelihood of a person or his/her family for the future.
The key benefit to this type of insurance policy is to provide means of sustenance for the family of the insured when deceased. It guarantees financial independence for the family that rely on the diseased financial support.
2. Health Insurance
This is the type of insurance policy that covers the medical expenses of an individual or household. Whenever a person is sick, under this policy, the insurance company has the obligation to take responsibility for all the medical expenses incurred by the insured person in the case of an accident or illness. This type of insurance also has its own categories, which are subjected to different laws of coverage.
3. Disability insurance
Disability insurance is also known as disability income insurance or income protection insurance. What this does is, it ensures that a person continues to receive payment for a specified period of time in the case of an accident during the time of employment. This means, if an employee got injured while working and becomes incapacitated to finish the job under the term of the contract, that employee is subject to continuity of salary under the terms of the insurance policy.
4. Vehicle Insurance
This is a type of insurance policy that covers various kinds of vehicles such as: cars, trucks, bikes and any other form of road vehicles. In the case of an accident, the insurance company will cover the payment of fixing the vehicle involved in an accident. Also, a vehicle can be completely replaced if it is unfixable after an accident.
5. Property Insurance
The property insurance policy provides reimbursement of financial expenses to the owner or a tenant of a property being insured in the case of accident or theft. In this type of insurance, property may be insured under fire, burglary, stealing, natural disaster or damage caused by smashing.
6. Marine Insurance
This is another form of transportation insurance. Unlike the vehicle insurance that covers road accidents, marine insurance covers the sea. That means, ships or any form of transportation through the sea, from one destination to the other, are covered by this type of insurance policy.