The insurance world is very wide – and interesting. It is a large industry that many people are still learning about – and even studying in school. Some people only understand the insurance risks against which they are insured, but they do not know the other types of insurance policies available.
Although there are more than 10 major types of insurance categories and more than 40 types of subcategories available, this piece only attempts to cover the major categories you may require for protection. Depending on your unique needs and budget, you must consider some of these major insurance categories for peace of mind and protection against sudden losses.
Health Insurance
Health is wealth – meaning that your wealth is best measured against your health. A decline in health could cause significant financial loss, and many people have been forced to declare bankruptcy when the costs of their health management skyrocketed. A family could become indebted for life on account of the health crisis suffered by a breadwinner. But with a health insurance policy in place, your medical bills can be taken care of by your insurer.
Life Insurance
Life insurance is a necessity because people die unexpectedly – when they are least prepared for death. The sudden demise of a breadwinner can cause significant hardships to family dependents, and this is why a life insurance policy is good. With a life policy, an insurer will pay an agreed sum to the family of a deceased to protect them against the hardships that come with losing a loved one. The insured must however pay monthly or yearly premiums to qualify for guaranteed family protection after death.
Property Insurance
Property insurance is also called homeowners or renters insurance in the United States. This policy protects homeowners and commercial building owners against burglary, fire outbreaks, building collapse, and flooding against other natural disasters such as earthquakes. If a building is insured, the insurance company will compensate the owner or occupiers against loss if there is burglary, fire damage, or collapse. The financial protection may include injury, loss of life, and property damage or loss.
Automobile Insurance
Auto or motor insurance protects vehicle owners against accidents, thefts, floods, and other types of damage. If your car is insured against theft, your insurance company will compensate you at the value of the car to enable you to purchase another car; and if it is insured against accidents, your insurer will pay you to repair or replace the car, and to even pay for the medical treatment of injured passengers.
Travel Insurance
A travel insurance policy is suitable for people who travel frequently. It is advised for commercial drivers, air flight passengers, tourists, and other frequent travelers. It protects against road accidents and health decline during travel trips. A travel coverage may also protect against damage to rented cars during tours, stolen packages, and even kidnappings during foreign trips.
Cyber Insurance
Cyber insurance is relatively new and offers protection against losses incurred from hacking and loss of money online. It protects against hackers and losses associated with hacking. It protects businesses and high-profile individuals against losses caused by unauthorized access to computers and networks. If you run an e-commerce store or engage in a business that is entirely run online, you might want to consider this type of insurance coverage in case of hacking attacks.
This list contains major types of insurance categories, and under these major categories are several subcategories that are not listed here but will be highlighted in another article on our website. All things considered, insurance coverage is an important piece of protection you must consider for your business and family in case unexpected events occur when you are most financially vulnerable.