Insurance is one of the main necessities in modern life, but how many types of insurance you know exist? You may know standard insurance like health and life, but there are other specific types.
Insurance products range from general health to specific, such as for pets and motorbikes.
Many people think that budget insurance is not recommended, compared to the expensive package. However, the key is to pick the right insurance type that accommodates your needs. Here are 20 insurance products you must know.
Table of Contents
- 1. Life Insurance
- 2. Health Insurance
- 3. Disability Insurance
- 4. Dental Insurance
- 5. Home Insurance
- 6. Pet Insurance
- 7. Travel Insurance
- 8. Car Insurance
- 9. Motorcycle Insurance
- 10. Employer’s Liability Insurance
- 11. Flood Insurance
- 12. Aviation Insurance
- 13. Pollution Insurance
- 14. Shipping Insurance
- 15. Terminal Illness Insurance
1. Life Insurance
Life insurance is a financial umbrella paid to designated beneficiaries when the policy holder dies. Beneficiaries can only get the payment if the situation of death happens within policy terms.
There are several types of life insurance, such as for protection and investment. A protection policy is the one that pays to the beneficiaries after the policy holder’s death. Investment provides capital growth within the payment period.
2. Health Insurance
What is health insurance? Health insurance covers medical expenses and purchases, which result from specific medical conditions. Depending on where the policy holder lives, he or she may buy private health insurance to support the state’s healthcare program.
You can find more specific health insurance program, depending on the services you need. Preferred insurance program, for example, works by pairing you with the medical service network of your choice. Meanwhile, required plan program pairs policy holders with specific doctors.
3. Disability Insurance
Disability insurance covers the monthly expenses for individuals who cannot work due to disability. The short-term policy covers people who experience temporary disability, while the long-term one supports disabled individuals who cannot earn for more than six months.
Policy holders can only receive payments if the terms cover their specific situations. They will not receive any benefits if they can return to work before the policy period ends.
4. Dental Insurance
Dental insurance is one of the types of health insurance, but it covers expenses for dental works. Many policies offer plans for individuals, families, and groups, and even offer them with general health insurance.
Dental insurance usually covers preventive and basic cares, such as an annual checkup, cleaning, filing, and simple extraction. Some policies cover slightly deeper cleaning. It usually does not cover the aesthetic procedure.
5. Home Insurance
Home insurance is one of the types of property insurance. It protects the house from damages and sudden loss of values, such as fire, storm, and vandalism hazards.
However, it will not cover costs to fix regular wear and tear. Insurance companies also don’t play coverage for damages in long-neglected houses (usually for more than 60 days).
6. Pet Insurance
Pet owners can get veterinary treatment coverage with pet insurance. The policy usually covers serious medical treatments, but not regular annual check-up. Pet insurance also does not cover spaying and neutering treatments.
Pet insurance covers medical expenses for pets with chronic and acute illnesses. However, owners must fulfill requirements such as giving regular vaccinations to their pets.
7. Travel Insurance
Travel insurance is important for frequent travelers, especially if you go abroad. The insurance covers things like medical expenses, lost luggage, cancelling/delaying costs, and liabilities (such as accidents) while in the destination.
Travel insurance usually does not cover any situations that come from preexisting conditions. It also does not cover policy holders that are involved in high-risk activities, like extreme sports.
8. Car Insurance
Car insurance provides a financial umbrella to keep your vehicle in good condition (or get financial value when you experience loss). Three different types of car insurance provide specific services, which you must choose carefully.
Regular insurance protects your car from the results of vandalism, fire, or thefts. Third-party insurance provides coverage for the other driver that collides with you. The most complete version is comprehensive insurance, which combines protection, damages, and other drivers.
9. Motorcycle Insurance
Motorcycle insurance is similar to car insurance, but it protects the motorcycle. Aside from the regular options, like comprehensive and third-party coverage, this insurance also protects the bike in the storage.
A motorcycle may experience troubles during long storage, especially in harsh winter. You should read the fine prints to understand what you sign up for.
10. Employer’s Liability Insurance
Employer’s liability insurance is a type of benefit offered by companies to protect workers. It covers costs for medical expenses and death compensations of the affected employees. It also provides compensation for workers who cannot continue working due to disabilities (with terms and conditions).
Employer’s liability insurance is mandatory in most countries. Companies that don’t provide this insurance risk facing fine, lawsuit, and court hearing.
11. Flood Insurance
Flood insurance is specific in regions around the world frequently affected by flooding. It offers coverage for water damage (leak, wetness, mold), structural damage, and loss of properties. In North America, flood insurance companies cover flood caused by other natural disasters, except earthquakes.
12. Aviation Insurance
Aviation insurance is a form of protection that covers any losses, damages, or costs related to the aviation world. The policy covers accidents, injuries, and deaths of the pilots, crew members, and passengers. There is also public liability coverage, which compensates public properties, personal buildings, injuries, and deaths caused by crashing planes.
13. Pollution Insurance
Pollution insurance provides financial coverage for those affected by the pollutions from company operations. While companies are responsible for cleaning up their damages, pollution insurance still covers the procedures if the company declares bankrupt.
Pollution is hard to clean, and some companies may have to declare bankrupt just to get financial coverage and clean it up. The insurance also covers victims’ health problems if pollution affects them.
14. Shipping Insurance
You are probably familiar with the term “shipping insurance,” especially if you use a lot of expedition services. This insurance provides coverage and compensations for damaged, lost, or burnt damages during shipping.
15. Terminal Illness Insurance
Terminal illness insurance is similar to health insurance, but with a larger stake. This insurance is for people who are diagnosed with terminal diseases. The policy holder’s diagnosis must be within 12 years, and it must also be signed by experienced doctors.
Choosing the right insurance can be difficult when you don’t know what to protect. These types of insurance offer unique characteristics, protection, and cleavage. Make sure to pick the right types of insurance to protect yourself and family members.