Insurance, a word that may be very familiar to you, whether you’ve heard about it on an advertisement or heard other people speaking about it.If you have never fully grasped the concept, fear not. Below you will find the different types of insurance, and what they do and do not cover.
Considered one of the most important types of insurance, life insurance typically covers paying your dependents a lump sum or regular payments if the event of the death of the policy holder. There are numerous benefits to having life insurance, including having the assurance that the debts of the policy holder will be paid off in the event of death. Life insurance is good value for money especially if you are young as it allows you to be covered at a relatively low cost, considering the high value. Some companies offer life insurance packages for their employees, but it is worth verifying whether your employee package includes “death in service” benefits. Life insurance does not cover medical disabilities or existing medical conditions which may hinder your working ability.
Critical Illness Insurance
Critical Illness Insurance is a policy which will usually pay a lump sum if you are diagnosed with a specific life threatening health condition such as stroke, heart attack, certain types of cancers or multiple sclerosis to name a few. In some cases, some polices may even fully pay out if you are permanently affected resulting in complete disability. It is worth investing in this police in the event that you can’t support yourself or your family as a result of being too ill to work. It is important to note that some chronic conditions are not automatically covered even if they hinder your working ability.
Property insurance covers the property of the individual insured against a certain specified risk whether it be fire, theft of property, damage to goods, etc. Property insurance also provides protection against some weather damage which includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.
Health insurance is very important, and everyone should invest in it. Good health is a necessity to living a fulfilled life however in the case where you develop a life threatening condition or serious injury, failure to be insured could risk delayed treatment or debt to the medical facility. Fortunately, many employers provide health insurance benefits to both full and part time employees. In the case that your employer does not provide health insurance and you are self-employed, you will potentially have to explore other insurance options.
Social insurance is targeted towards providing protection to the weaker sections of the society who are not able to adequately pay for premium insurance. This type of insurance comprises a variety of types including disability benefits, unemployment benefits, sickness insurance, pension plans and industrial insurance.
There are many other insurance options but these are among the most common. Contact your insurance company today to find out which kind of insurance policy will best suit your needs.