Insurance is classified according to risk, type and hazards. Logically, any quantifiable risk can potentially be insured. Understand the importance of insurance and the different types of insurance such as life insurance or personal insurance, property insurance, marine insurance, fire insurance, liability insurance, l guaranteed insurance.
Any risk that can be identified and quantified can potentially be insured. The specific types of risks that can give rise to claims are called perils. An insurance policy will specify in detail which risks are covered by the policy and which are excluded. Below is a non-exhaustive list of the many types of insurance that exist in today’s world.
1. Car Insurance/Vehicle Insurance:
Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as a road accident. Any financial loss resulting from the accident of the vehicle belonging to the policyholder is covered by the automobile insurance policy. In some comprehensive policies, drug expenses for the treatment of injuries and any other medical expenses are also covered. Coverage liability typically includes damage to or theft of the car and statutory damages to others for bodily injury or property damage. Some policies may cover the cost of injury treatment, rehabilitation, and sometimes lost wages and funeral expenses.
Reinsurance is a type of insurance taken out by insurance companies or self-insured employers to protect against unexpected losses. Financial reinsurance is a form of reinsurance that is primarily used for capital management rather than transferring insurance risk.
2. Gap insurance:
Gap insurance covers the excess amount of your car loan in the event that your insurance company does not cover the entire loan. Gap insurance is usually offered by your finance company when you first purchase your vehicle.
3. Health and dental insurance:
Health insurance covers various types of health-related insurance. Health insurance is insurance against loss from illness or bodily injury. It covers medication, visits to the doctor or emergency room, hospital stays and other medical expenses. Dental insurance, like medical insurance, protects policyholders against dental expenses. In the United States and Canada, dental insurance is often part of an employer’s benefits package, along with health insurance.
4. Accident, sickness and unemployment insurance:
Workers’ compensation or employers’ liability insurance is compulsory in some countries. Disability insurance policies provide financial support in the event that the insured becomes unable to work due to a disabling illness or injury. It provides monthly support to help pay obligations such as mortgages and credit cards. Short-term and long-term disability policies are available for individuals, but given the expense, long-term policies are generally only obtained by those with at least a six-figure income, such as doctors, lawyers, etc
5. Damage insurance:
Damage insurance insures against accidents, not necessarily related to a specific property. It is a wide range of insurances into which a number of other types of insurance could be categorized, such as auto insurance, workers compensation and some liability insurance. Crime insurance is a form of damage insurance that covers the policyholder against losses resulting from the criminal acts of third parties. Political risk insurance is a form of liability insurance that can be purchased by companies with operations in countries where there is a risk that a revolution or other political conditions will cause a loss.
6. Life insurance:
Life insurance is an agreement between the insurer and the policyholder which guarantees payment of a fixed sum of money and benefit either at the end of the policy or on the death of the policyholder. insurance. Human life is subject to risks of death and disability due to natural and accidental causes. When a human life is lost or a person is permanently or temporarily disabled, there is a loss of income for the household. Life insurance provides a set sum of money to the dependents of the insured in the event that the insured dies during their active income period or becomes disabled due to an accident resulting in loss of income. Life insurance provides a monetary benefit to a deceased person’s family or other named beneficiary, and may specifically provide income for an insured person’s family, burial, funeral, and other final expenses . Life insurance policies often offer the option of having the proceeds paid out to the beneficiary in the form of a lump sum cash payment or an annuity.
7. Property Insurance:
Any financial loss to the property due to fire, theft, burglary or any other natural calamity like flood, earthquake etc. are covered by the property insurance policy. This may include specialist forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance. The term property insurance can, like damage insurance, be used as a broad category of various subtypes of insurance. Home insurance, also commonly referred to as casualty insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), provides coverage for damage or destruction to the policyholder’s home.
8. Liability insurance:
Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include a liability coverage aspect. The protection offered by a civil liability insurance policy is twofold: legal defense in the event of a lawsuit brought against the policyholder and compensation (payment on behalf of the insured) in the event of a settlement or court decision. . Directors and Officers (D&O) liability insurance protects an organization (usually a corporation) against the costs associated with litigation resulting from errors made by the directors and officers for whom they are responsible. Professional liability insurance, also known as professional indemnity (PI) insurance, protects insured professionals such as architectural firms and medical practitioners against potential negligence claims by their patients/clients. Professional civil liability insurance can take different names depending on the profession. For example, professional indemnity insurance in reference to the medical profession may be called medical malpractice insurance.
9. Credit insurance:
Credit insurance reimburses all or part of a loan when certain circumstances arise for the borrower such as unemployment, disability or death. Mortgage insurance insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the term “credit insurance” is more often used to refer to policies that cover other types of debt. Trade credit insurance provides a business with protection against a customer’s failure to pay trade credit debts. This can happen if a customer becomes insolvent or if your customer does not pay within the agreed credit period. Credit insurance can reduce the unnecessary cost of bad debt and protect hard-earned success.
10. Travel insurance:
Travel insurance is insurance coverage taken out by those who travel abroad, which covers certain losses such as medical expenses, loss of personal effects, travel delays and personal liabilities. Travel insurance is the coverage against risks during national or international travel. A standard travel policy covers death, personal accident, medical expenses, repatriation, loss or delay of checked baggage, loss of passport and third party liability.
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