Insurance is a way of protecting yourself from costs due to damage to your property or your health. A premium is the amount of money you pay to an insurance company to have an insurance policy cover you for all or part of these costs. Insurance companies assess the risk of a particular policy and then calculate the premium to be charged. You can pay a premium monthly or annually, here is a brief about the types of insurance:
1- Health Care Coverage
Health insurance is a form of insurance policy that covers the costs of medical treatment. Health insurance policies either cover or repay the cost of treatment for any included disease or injury. Various forms of health insurance cover a wide range of medical bills.
It typically provides defense against:
Inpatient care
Critical illness treatment
post-hospitalization medical bills
Procedures for day-care
2- Automobile Insurance
Motor insurances are forms of insurance that provide financial help in the event that your automobile is involved in a crash. There are several types of motor insurance coverage available in some companies, including:
- 1) Car Insurance
- This plan covers privately owned four-wheeler. There are two kinds of automobile insurance plans: third-party insurance and extended coverage policies.
- 2) Bike Insurance
- These are forms of automobile insurance that protect privately-owned two-wheeler in the event of an accident.
- 3) Commercial Vehicle
- A sort of automobile insurance that covers any vehicle utilized for commercial purposes.
3- Homeowners’ Insurance
A homeowner’s insurance, as the name implies, provides full coverage for the belongings and infrastructure of your property against physical destruction or damage. In other words, house insurance protects you from both natural and man-made disasters such as fire, earthquake, tornado, burglary, and robbery.
4- Life Insurance
Life insurance policies provide protection against unforeseen circumstances such as the policyholder’s death or incapacity. Aside from providing financial security, many types of life insurance plans enable policyholders to optimize their savings by making recurring payments to various equity and debt fund alternatives.
In the end, don’t think of the insurance premiums as unnecessary monthly expenses that increase your financial burden, but rather think about the multiple benefits of insurance and choose the right insurance for your future that can help you avoid unexpected expenses that are not taken into account in the future without affecting your basic savings.