Why do we need insurance?

By: Evan T Smith

We have come to an age where insurance policies have become an integratedpart of our lives. Insurance acts as a shield that protects us from thecontingent financial losses from the unfortunate events of the future.

Typesof insurances

To cater to the different needs of a human life, various types of insurancepolicies have been devised till date. However, following are the most prominentcategories of insurance,

Life insurance

The life insurance policy covers the risks associated with the life of thepolicy holder. The insurer promises to cover the financial losses attached withthe untimely death of the insured. The benefits of the policy are then paid tothe family of the decedent insured in lump sum or in the form of annuity.

Health insurance

The costs associated with the medical treatments are often unexpected andcan cause your savings to emaciate to a great extent. The health insurancepolicy pays towards the medical expenses of the insured. Often it covers widerange of services, like- the hospitalization costs, costs associated withcheck-ups and surgeries, prescription drugs so on and so forth. Only the healthinsurers who offer cheap insurancemight choose to differ.

The health insurance providers offer both individual and group healthpolicies. The group health coverages are normally offered by the employers andcover individuals exposed to similar kind of health hazards. The lax qualifyingcriteria for the group health policy allow more people to receive coverages inan affordable rate. The government organizations also offer subsidized healthcoverage to the underprivileged, who otherwise can’t afford health insuranceplans.

Auto insurance

Auto insurance through the mere size of demand, constitutes the largestmarket for insurance in USA.You are required to carry the proof insurance while driving, if you want tocontinue with the privileges of driving in the country. Also auto is the secondlargest investment after house that an individual makes in his/her life. Hence,the sear desire to protect it from the unexpected, emanates the need of an autopolicy.

Home insurance

Home insurance covers your dwelling along with its contents from the ‘actsof god’ and some named human errors. The renter’s policy, however, covers onlythe content of the renter and not the structure, which is a property of thelandowner and covered under his/her policy. The homeowners’ insurance alsooffers coverages against burglary and vandalism.

Disability insurance

Every three out of ten Americans may experience disability in theirlifetime. HoweverPsychology Articles, the costs associated with disability aren’t normally coveredunder any other available forms of insurance. The disability policies areavailable to cover both the short term and the long term disabilities. Thedisability plan compensates for the loss of income during the phase ofdisability.

Insurance
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Insurance