There are many types of available insurances out there. Here is a list of 7 Basic Types:
#1: Life Insurance
Life insurance quite literally insures your life. If you pay the life insurance company the policy money on time, the company insures to pay your loved ones and relatives after you die. You can choose who receives the premium, and they simply need to file a life insurance claim and get a check in the mail as soon as a few days later.
#2: Car Insurance
Car insurance is important in ensuring that your car and others’ cars can be taken care of if you get into an accident with someone. It is illegal to drive a car without car insurance in the U.S., except in New Hampshire. There are three types: liability, comprehensive, and collision coverages, each at different price points with different benefits.
#3: Home/Property Insurance
Your house can be insured if a natural disaster strikes as long as you have home insurance. Financial reimbursement can be given to homeowners who have their house damaged, burned, or flooded. It also can insure its contents in case of a house theft. If the owner or renter is injured from any of these events in the house, reimbursement can also given for the injury sustained.
#4: Health Insurance
Health insurance is an insurance that covers medical fees, doctor visits, and prescription medication costs. The insurance can cover medical procedures such as surgeries as well. Coverage of these fees varies depending on which health insurance plan you might choose. Some companies offer healthcare plans to their employees.
#5: Disability Insurance
Disability insurance differs from health insurance in a significant way: if you become disabled, the insurance will pay part of your income that you are missing out on due to the injury. While it seems unnecessary, statistics show that getting a disability is more common than you think. Anyone with a paycheck should have disability insurance as a way to secure your income.
#6: Identity Theft Insurance
Identity theft is a crime where your personal identity is stolen and used in fraud and other crimes. Identity theft insurance pays for the costs that come with having your identity stolen. Identity theft can oftentimes harm credit scores and create fees in plenty of areas as the insured tries to get their identity back, so insurance for some is key.
#7: Social Insurance
Social Insurance is a public insurance that protects people against risks associated with economic fallbacks or crashes. Examples of this include someone suffering from a loss of income due to sickness, old age, and unemployment. It is a form of social security, but doesn’t protect against cases in which disability insurance would be more suited.