Insurance is a source of protection against financial loss. It is the one of the best risk management technique primarily used to safeguard resistant to uncertain and fortuitous loss. The body which provides insurance is called an insurance company, insurer. The one who buys the insurance is called policyholder or insured. Any risk that can be quantified can be potentially insured. The kinds of risks that may give rise to claims are called perils. An insurance policy is set out on details which perils are covered by a policy and which not. So for different types of claims and risks, there are the list of many different types of policies which are-
Auto insurance- This insurance basically protects the policyholder against the financial losses in the event of an incident involving vehicle they own like in vehicle collisions. Vehicle insurance is of two type road risk insurance and combined insurance policy. The coverage of auto insurance includes damage or theft of the car, property damage and cost of treatment. This is also called motor traders insurance.
GAP insurance- GAP stands for guaranteed auto protection. This insurance used for the vehicles which are bought on loan. This insurance covers the excess amount on your loan where your insurance company does not cover the entire loan. This coverage is marked for those who put low down payments and have high interest in their loans.
Health insurance- This insurance covers the cost of health treatments. Different health insurances have the different structure. Some health insurance policies offer health expenses for the small set of diseases and some offer treatments for a large number of health diseases. In developed countries, all citizens receive health insurance from their government and they are often the part of employees benefit.
Life insurance- Under this type of insurance, there is a contract between insurance policyholder and insurer that the insurer pays a designated beneficiary in exchange for a premium upon the death of an insured person.
Casualty insurance- This insurance insures against accidents. It covers all the financial losses that takes place during accidents.
Burial insurance– This kind of insurance is very old. This is paid out upon the death of the bearer to cover final expenses such as the cost of the funeral.
Insurance plays an important role in the life of every class of people i.e. in the middle class and upper-class people. It provides a great sense of relief to people about their future. It is a great support at the time of unpredicted financial loss or need.