Types of Insurance

The Different Types of Insurances That Help You Live Life More Peacefully  - Insurance, in all its forms, gives you complete peace of mind. It helps you to stay protected against any unexpected turn-ups. In fact, you can get an insurance policy to cover almost everything under the sun.    However, there are certain types of insurance policy that do deserve someplace in your budget. Hence, while mapping your financial future, see whether these policies are on your own radar.

Life Insurance

Justifying the name, this insurance literally covers your life. The different types of life insurance, make sure that you, as well as your family, remain financially strong and stable in any unfortunate case of a mishap, or some disability, or even worse. While picking a policy, you can either make periodic payments or pay a lump sum amount to the insurer as premium. In exchange, your insurance policy provider would pay an assured amount of money at a set time, or in the event of death or disability.

On the kind of coverage, life insurance plans are varying in nature. Such as:

1. Money-back plans
2. Endowment plans
3. Term plans
4. Pension plans

Property Insurance

This type of insurance gives you financial compensation for different aspects of life, with the exception of life itself! Basically, it offers monetary protection for your different assets against damage, loss, theft, and similar liabilities. For example, it can pay an assured monetary amount to cover for damages for your car, damage and loss for fire and theft, among others.

Car Insurance

Like your home, even your cars can be quite costly. Hence, if it receives damage by any means, then you might want to replace or repair it.

However, there is more to this insurance than just covering the automobile.

This is the protective net for your vehicles against just about any unforeseen occurrence, such as theft, fire, accidents and the like. Automobile insurance or car insurance is one of the compulsory kinds of insurances. In fact, car insurance would cover you both with the damages that you cause on your car, as well as damages caused by a third party.

Comprehensively, car insurance can cover your vehicles from:

1. Damages caused by accidents and collisions
2. Unfortunate car theft
3. Damages caused by any type of natural calamity
4. Personal accidents
5. Damage caused by the third party, for example, someone else’s property or car

Two-wheeler Insurance

This policy covers your two-wheeler against mishaps like theft, accidents, natural disasters and the like. It covers you for any damages as well as the third party if you meet with an accident. Just like automobile insurance, your two-wheeler insurance policy would comprehensively cover for accidents, theft, natural disaster damages, theft, fire and third party losses.

Travel Insurance

International vacations can be really fun. However, all the thrill and fun can simply get ruined due to unexpected turns of events, like a sudden illness and a passport loss. No wonder that travel insurance is gradually becoming one of the main types of insurance for those who love to travel.

It is likely to cover different aspects like:

1. Emergency evacuation or accident
2. Medical emergencies
3. Daily cash allowance
4. Personal accident
5. Accidental disability or death
6. Cancellation of trip
7. Delay, or total loss of checked-in baggage
8. Delay of common carrier
9. Passport loss
10. Trip abandonment
11. Missed flight connection
12. Extension of the trip for emergency reasons
13. Emergency cash flow
14. Bail bond
15. Personal liability

Home Insurance

While checking the details of different types of insurances, it is imperative to cover your home with insurance. It protects your place against any types of loss arising due to theft, fire accidents and weather conditions. Also, there are standalone policies like:

1. Flood insurance
2. Earthquake insurance
3. Fire insurance
4. Boiler insurance
5. Home protection insurance to cover your assets when you are not around.

Comprehensively, a home insurance policy keeps you covered against:

1. Burglary
2. Loss or damage of expensive assets like jewelries
3. Fire
4. Natural disasters

However, very few policies offer coverage against:

1. Any legal liability which is lost or not covered
2. Theft, that is, when there is no sign of forced entry or breakage in the property
3. Damage due to terrorist activities
4. Loss to livestock, or to the cars, or loss of cash/ credit/ debit card
5. Any damage due to wear and tear

Mobile Insurance

Smartphones are not a luxury for many nowadays. It is a necessity for different professionals, as well as for self-employed individuals. So if you have invested in a really expensive phone and anything untoward happens to it, then mobile insurance can help save the calamity.

It can keep your phone covered from:

1. Any scratch on the screen of the phone
2. Damage owing to accidents or fire
3. Damage owing to spills and liquids

However, it is not going to cover:

1. The harm is done to any phone accessory
2. Any intentional wear and tear damage
3. Electrical or mechanical breakdown
4. Anything which is already covered in the manufacturer’s warranty

Jewelry Insurance

Keeping that exquisite necklace in the locker is not everything that you should do to keep your valuables ‘safe’. Having jewelry insurance will help you save the trauma if any of your jewelries are lost or stolen. Your insurer can also offer coverage for any damage done due to accidents. However, such insurances do not cover any damage due to regular wear, or cases of contributory carelessness.

What to Check Buying Your Insurance Policy

Make sure to get well versed on different insurance meaning and types. Also, consider the following pointers before buying any policy:

1. Look for value-added services like 24/7 Customer Support and easy payment system
2. See whether the insurer suggests you choose the right sum insured for your policy
3. Check how speedily your company settles all claims
4. Never mind shopping around to get the best value for your money