There are four basic types of insurance that nearly all people should ensure they have without any excuse. They are the ones that keep the insurance industry busy. It is, however, wise to get to know what precisely each type covers so that you can choose what can work well for you. Have a look!
1. Health insurance
This is the first and most common type of insurance. It generally covers your health. In most cases, nobody plans to be sick. At times the sickness comes when you do not have the cash to pay hospital bills. This is the time when your insurance company can pay the bills on your behalf. At a glance, health insurance covers for your health and that of your family members. In some nations, health insurance is mandatory.
2. Property insurance
Most people tend to assume this type of insurance, although it is mandatory for those who have mortgages. You can insure your property say a house against specific risks like fire or any natural calamity. If the risk happens, your insurance company will have to compensate you for the loss.
3. Life insurance
This is another essential type of insurance. It covers your life generally so that when you die, your beneficiary can get income that would otherwise be generated had you not died. However, it has to cover you against specific risk so that you be able to be compensated when it happens. Your premium payments are dependent on the type of risk that you are getting insurance against.
4. Auto insurance
This is the last type but which is very popular among car owners. You must have this insurance to have your car operation in most countries. The significant risk which you are mandated to cover is against accidents. You could go ahead to insure it against theft, fire, or any other possible risk.