Kinds of Insurance (Part I)
Insurance – Is a form of risk management, it is used to hedge against the risk of a loss. It is also the equitable transfer of the risk of a loss from one entity to another in exchange of a premium. A lot of people are getting different types of insurance to be secured in their future. Here, I have the first part of those insurances and what are the functions of each.
Types of Insurances (Part I);
1. Auto Insurance – It is an insurance which protects you against financial losses, most especially if you have encountered an accident. The insurance company will agree to pay for the losses and you have to pay for the premium as defined by the policy. Auto insurances give property, liability and medical coverages.
2. Home Insurance – This insurance provides compensation for damage and destruction of a home from disasters. Some areas exclude certain disasters such as flood and earthquakes. The policy may include inventory most especially to those who are renting.
3. Health – The policy like for NHS in the UK or the National Health Service will cover most of the medical treatments. Dentals like medical insurances are coverage for every individual to protect them from dental cost. In the United States, dental insurances are often given to the employees as a part of their benefits together with the health insurance.
4. Life – It is an insurance which provides monetary benefits to a beneficiary or a family member; it specifically provided burial, funeral and other final expenses to the family. It also gives policies that often allow the option of having the proceeds to be a lump sum cash payment or an annuity.
Any risk can be qualified and can be potentially insured. The important thing is that right now we have an idea on where we should put our money. These medigap insurances are optional and it is all up to us if we want to avail one.