7 types of insurance
Insurance is a way of risk management used to cover in case of loss. In insurance, the insured pays a fixed amount of premium and in return the insurer guarantees to compensate for the loss of the insured`s property or life or the insured thing in case of any damage.
The premiums are being determined with insurance rate. There are many types of insurance available to ensure your valuable things. But in general, you can find 7 types of insurance policies that are available in the market to suit your needs.
- Health Insurance—Yes, this is a hot-button issue, and according to current law, not something you can avoid purchasing without a penalty. I also understand that health insurance is expensive, and has become more expensive for many people over the last couple of years.
- Life Insurance—If you’re an adult, you need life insurance. If you have dependents who count on you for what you contribute to the monthly income, you should get ten times your yearly salary in Term Life Insurance coverage.
- Homeowner’s/Renter’s Insurance—You’ve got stuff, and what happens if you stuff gets lost, damaged, or stolen? Even if you consider yourself a relatively non-materialistic person, simply replacing your basic necessities can get expensive quickly. Imagine having to replace your entire house!
- Auto Insurance—You should never drive around without auto coverage. You should be sure you have adequate liability coverage at the very least (the insurance portion that pays for the other person’s damages).
- Disability Insurance—Try to get disability insurance through an employer or some sort of trade organization. If it’s not available, you need to look into Own-Occupation Disability.
- Long-Term Care Insurance—You don’t need to purchase this type of insurance until you’re 60 years old, but you need to have it on your radar.
- Other types of Insurance – There are also some other types of insurances related to the Business, Disaster, Travel, etc.