Forms of Insurance
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Forms of Insurance
There is insurance to cover nearly everything. Here are some of the most common forms:
Things To Know
- Credit insurance protects you when you take out a loan.
- Liability insurance covers legal claims against you.
Health insurance
Health insurance covers medical treatments. Often paid by employer contributions, healthcare insurance is essential to assure an adequate level of medical care. There are many forms of health care insurance programs available, including fee-for-services plans, hospital and medical service plans, and managed care plans.
Homeowner’s insurance
Homeowner’s insurance provides coverage for damage or destruction to a policyholder’s home. Depending on where you live, a policy may exclude certain risks, such as floods.
Long-term care insurance
Long-term care insurance helps cover the costs of long-term care, such as nursing homes and assisted living. It is most commonly used by the elderly.
Life insurance
If a family were to lose its income due to the death of the principal earners, it would face financial hardship. Life insurance pays benefits to replace lost earnings due to an earner’s death.
Disability insurance
Disability insurance provides financial benefits if you should become unable to work due to a disabling illness or injury. You can buy short-term or long-term disability insurance.
Auto insurance
Auto insurance protects a policyholder against financial loss due to an incident involving a vehicle they own. Coverage under auto insurance usually includes liability, property, and medical coverage. Many drivers do not buy sufficient coverage for their vehicles, despite the high prices that they pay for them. Always look at buying more than just the minimum required amount.
Renter’s insurance
Renter’s insurance provides coverage for a policyholder’s belongings and liability within a rental property (such as an apartment, duplex, or house that is being rented).
Liability insurance
Liability insurance covers legal claims against you. Many forms of insurance already cover liability to some extent, but not totally. One of the more well-known forms of liability insurance is medical malpractice insurance, which protects medical practitioners.
Credit insurance
Credit insurance protects you when you take out a loan in the event of your death, disability, or unemployment. It is available for nearly any kind of loan, including credit cards. You probably are not going to be eligible for credit insurance if you are over 65. It may vary by the state you live in.
Device insurance
Device insurance covers items that you buy for your own use, such as cell phones, tablets, and computers. You can buy an insurance plan for an upfront fee when you buy the item, or you can pay a small amount each month as part of a regular bill. Device insurance will cover accidental damage, mechanical failure, and possibly even loss or theft of the item (the insurance plan document will spell out the coverage). Generally, when you buy the item, a salesperson will offer you insurance. Monthly fees for cell phone insurance typically range from about $7 to $12.
These are the most well-known forms of insurance. But there are many others: Pet insurance, burial insurance, mortgage insurance, unemployment insurance, deposit insurance for your bank accounts, and travel insurance are just some of the many forms available.
