While there are so many different types of insurance, the most common and basic types are namely, auto insurance, life insurance, health insurance, homeowner’s insurance, and long-term disability insurance.
- Automobile Insurance – this type of insurance covers expenses or liabilities which involves physical injuries, property and vehicle damages and losses, medical fees, and even legal expenses like attorney’s fees. It is necessary for someone who owns a vehicle to avail of this type of insurance because without this, and then an accident happens, all expenses will cause a financial burden financially.
- Life Insurance – is a type of insurance that covers the funeral expenses of the insured in case of death. It also provides benefits for the family or the dependents of the deceased to have financial support for their needs.
- Health Insurance – it includes benefits such as hospitalization costs, doctor’s professional fees, medical consultations, and prescriptions of medicines. This is important because having a serious illness is sometimes unpredictable. Without this type of insurance, you might experience personal bankruptcy due to expensive hospital bills.
- Homeowner’s Insurance – this kind of insurance covers possible damages or loss of a house or building due to earthquake, fire, theft, and other perils. This will help the insured to ensure that there will be a restoration of the damaged or lost property. This is essential because there are unpredictable incidents that could happen, particularly natural disasters.
- Long-Term Disability Insurance – this type of insurance provides alternative income in replacement of a worker’s salary in case of inability to continue in work due to some serious illness or physical injuries.