TYPES OF INSURANCE COVERS IN THE INSURANCE INDUSTRY.
There are different types if insurance in the insurance industry. Different insurance covers cover different needs of the society. These are some of the different types of insurance:
1. Life insurance
There are two types of life insurance which are whole life insurance and term life insurance. In whole life insurance, you pay the insurance company your whole life until you die and the benefits will be passed to you next of kin after you die. Under the term life insurance, you pay a set amount of money to the insurance company for a set amount of time. At the end of that set time you will receive your benefits if you will have not died. You next of kin will receive the benefits if you will have died during the set time. Life insurance is important for salaried people especially if they seek to support their families after they die. Most people don’t relate well with death and the life insurance benefits help to lessen the impact of death in families.
2. Health insurance.
These is a type of insurance that covers wholly or partially medical expenses that the insured person incur. Insurers do this by spreading the risk among a large pool of people and they calculate the monthly payments to be paid by insured based on the health risks over the pool of insured people. Health insurance is normally administer by a central organisation which in most cases is the government. Health insurance helps cushion the family’s finances when a member of the family gets sick.
3. Property insurance.
This is a type of insurance whereby a person insure their property against certain risks that the property may face. Property insurance may include fire, homeowner, renters, flood or earthquake insurances. Each type of insurance covers the property against those specific risks. In case of damage of the property by the risks insured, the insurance company sends experts who assess the extent of the damage and the insurance company will compensate the insured on the loss incurred.
4. Motor vehicle insurance.
These is a type of insurance in which one insures their motor vehicles which may include cars, trucks and motorcycles. One insures their motor vehicles against losses that would be incurred if the vehicle got involved in an accident, got stolen or got burnt. In most countries, motor vehicle insurance is a legal requirement. The insurance company determine the premium to be paid by the insured based on the risks associated with the vehicle and also the cast of the vehicle. Motor vehicle insurance may also provide financial protection against body harm that may be caused by the insured vehicle.
5. Maritime insurance.
Maritime insurance covers financial losses that would be incurred on loss or damage of ships and cargo between point of origin and final destination. Maritime insurance is crucial to traders as the risks involved in transport of cargo on long distances are huge.
Different types of insurance covers different types of risks that people and property face all across the world. Insurance covers keep on growing and cover more risks now than those on past years.