April 27, 2020

What Are The Types Of Insurance And Why We Need Them

Life is full of unexpected things, and anything can happen at any time. It mainly refers to mishaps or some untoward incidents that can occur at any point of time. We generally cannot stop these things from happening, but we can be prepared for the aftermath of such misfortune, at least financially. Insurance policies are the thing that provides us protection and cover our financial losses that happen due to the accident or any other incident. Insurance policies are something that we buy for the financial security of ourselves, our family, business, health, car, and several other things. Insurance policies are the investments that we do for our future with the idea that insurance companies will come to our aid at the time of our crisis. There are different types of insurance policies for different things. To what are the different types of insurance policies, and what all they cover, have a look at the points given below.

Health insurance

Health insurance or medical insurance covers all your medical expenses right from hospitalization, doctor’s consultation, and surgery. It bears the cost of treatment of different types of health ailments and also allows you to take preventive care by doing regular check-ups and tests. Health insurance is an important policy for everyone as it can prevent the financial hardship that you can face while doing the treatment at a hospital or some long-term chronic ailment. There are various plans of health insurance policies for which you can subscribe, and it varies on the amount you have taken and the premium you have to pay annually.

Motor/Car insurance

If you own a vehicle, then car insurance or motor insurance is a must for you and the vehicle. It is also a legal document that you need to have while driving the car on the road and while selling or purchasing the vehicle. Car or motor insurance covers all types of motor vehicles right from a car, motorcycle, and commercial vehicles like trucks. There are two types of motor insurance, which include comprehensive insurance and third party with theft. Comprehensive insurance covers not only the damage to the car but also the injury that occurs to you in case of o accident as personal injury protection is covered under it. It also covers liability if any pedestrian or other motorist is injured in an accident that happened because of your vehicle. Whereas, the third party with theft only provides financial coverage in case the car is stolen.

Fire insurance

Fire insurance is something that every home or commercial shop owner should possess. Since fire has the capability of destroying everything and the losses incurred by it is irreversible. However, fire insurance can provide some financial comfort that happens to the property and business due to inferno. The fire insurance compensates losses not only for accidental fire but also for the consequential losses that happen due to riots, natural calamity, war, and other things like that.

Disability insurance

It is an insurance that is not known to everyone but can be a big aid for you in case something happens to you due to an accident, and you get disabled. In such circumstances, employment becomes a problem, and your livelihood becomes a challenging issue. In these cases, disability insurance can be helpful for you. It is applicable when you are not able to work due to disability, and the insurance shall reimburse the loss of income for you. It is mainly required by adults who have a profession which includes doing a lot of hazardous work at construction, mining or other hazardous work environment and is at risk of facing an accident or some other mishap.

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