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7 Types Of Insurance Cover

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July 28, 2021

THE 7 TYPES OF INSURANCE

Everyone needs protection for one thing or the other. It could be life, belongings, or other types of property, but the main point is that we need insurance in case of the loss of this property.

Life is unpredictable, it can throw some unexpected expenses your way that you didn’t account for in your budget.

Well, that is why you need insurance, it acts as a buffer from these costs, helping you to mitigate the effect and cover expenses.

Here are the 7 types of insurance that will surely benefit you.

Health insurance

Health insurance is a contract between a policyholder and a health insurer that requires the health insurer to pay for all or at least a good portion of the policy holder’s medical costs. Everyone needs this as health problems are a consistent part of life which we should all prepare for and health insurance helps mitigate the financial effect of any health emergencies.

Expected and unexpected health care expenses like medications, emergency stays, serious surgeries, and even routine visits can add up quickly and cause a substantial amount of debt for people who can’t afford the out-of-pocket costs.

Car insurance

Auto insurance covers motorcycles, cars, trucks, and other vehicles. It is intended to protect policyholders against physical damage or bodily harm which could result from driving, either due to recklessness or plain accident causes. In America, it is against the law and dangerous to drive without having a valid insurance policy, this is because their vehicles aren’t protected against a collision, accident, or general theft and vandalism.

Unless you plan on driving on 40 km/hr. and lonely dirt roads for the rest of your life, the likelihood of having an auto accident in the US is sadly, considerably high, that’s why driving uninsured is unwise both physically and financially as you bear the entire risk in the event of an accident.

Life insurance

In the event of a death, the beneficiary of a life insurance policy is paid an agreed-upon amount to help cover and mitigate the expenses left unsettled by the deceased. The person or entity that is named in a policy as the recipient of benefits, such as a spouse, is referred to as the beneficiary.

Whether we like to talk about it or not, death can be an expensive process, from settling an estate to planning a funeral, the bills do pile up very quickly. But a life insurance policy will help ease the financial burden that has been placed on a surviving spouse and dependents i.e. children.

Homeowners insurance

This insurance covers the house that you as a homeowner reside in and any associated structures including porch, garage, and balcony. A homeowner’s insurance policyholder can be assured that they can maintain their homes keep their property value high and be assures cover in the case of major damage like a house fire. This insurance policy is needed by both homeowners and landlords as it protects the house and thus, both parties.

Umbrella insurance

Also referred to as liability insurance, umbrella insurance gets its name from the duty it performs, it covers costs over other insurance policies. If you sense that you may require extra coverage in addition to another insurance policy e.g. medical or car, then umbrella insurance will help provide further protection from the risk of being sued for damages. If you already have any insurance, this type of insurance is a smart move as you have a backup for your backup.

Renters Insurance

Renters insurance is used by tenants as protection from damage or theft, with this policy they can cover their personal property, and no it isn’t the responsibility of your landlord. Every renter knows that things happen, so they protect themselves and their property while they rent, in fact, some landlords actually require it.

Travel insurance

Travel insurance covers trip cancellations, misplaced or lost luggage, travel accidents, and also medical expenses while you’re on a trip. If you plan to go on a trip to a new destination, then ensure that your airfare cost is covered in case of medical emergencies or other incidents that may cut the trip short.

CONCLUSION

Life is unpredictable and we humans are fickle, that’s why we must ensure all of the things that are important to us because as we all know, that things can change anytime. The 7 types of insurance mentioned above are the major ones with several subcategories under each of them, with separate conditions attached to them, so ensure that you read the fine print before you make any commitments.