What is insurance

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Insurance comes in many different forms and covers a wide range of possible events and circumstances. Insurance is a policy where the insured invests the policy fee, which is not returned, and in the event that what you have insured against occurs the insurance policy will pay out an agreed amount.

Here is a brief outline of the most common types of insurance.

Life Insurance - The idea behind life insurance is to provide financial security for the survivors of the insured in the event of death occurring during the period of insurance cover. Life insurance is particularly important for young families as an unexpected death can result in severe financial difficulties without adequate provision having been made beforehand. In the event of a claim being made against a life insurance policy the life insurance company will pay the beneficiaries the value of the policy. The recipients typically use the money to cover burial costs, pay off debt and the ongoing care of surviving children.

Health insurance helps with medical care, normally the insured makes a monthly payment, called the premium, and additionally they may also pay a percentage of their medical practice visit charges and prescription drugs. Typically health insurance will include exclusions which may include pre existing conditions and certain types of illness and medical cover, for example plastic surgery is typically excluded except if the surgery is required to repair damage caused by the accident for which the claim is made.

Auto insurance provides protection against accidents and damage to people, autos and property. A monthly premium is paid and in the event of an accident your insurance will cover for personal injury for yourself and passengers and any other parties involved, you should check the policy detail to confirm the actual level of protection provided.

Auto insurance cover would typically be either liability and full-coverage.

Liability auto insurance will only cover what you are liable for and is normally cheaper than full coverage that provides full protection for your car, your body and any other party involved.

Home insurance provides protection for your residences and it's contents whereas buildings insurance covers the structure of the building from the effects of subsidence for instance. If you rent your home renters insurance provides cover for your contents and also damage to the house itself. Home insurance often provides new for old cover meaning that a damaged 5 year old TV would be replaced by a new TV even though it is 5 years old.

Most home insurance plans also cover natural disasters like storms, floods and earthquakes though you need to check the detail in the policy for an exact understanding.

Additionally for business owners there are a range of specialist insurances like business interruption and disability insurance.

It is important when considering your insurance needs to consult an impartial insurance agent, your insurance needs should come first not their commissions. This article has been written by http://www.myhealth-insurer.info For more information on health insurance, visit our web site http://www.myhealth-insurer.info This article is not a substitute for insurance advice from a professional insurance agent. Please feel free to use this article in your newsletter or on your web site, the resource box must be included. If you use this article, please send a brief message to let me know where it appeared: mailto:mh-i@t4star.com Thank you.