Five Types of Insurance for Every Average Joe to Know

Insurance policies are a complicated topic. However, we have gathered the essential six everyone should know about and explained them to you. Without further ado, here are the six types of insurance that everybody should know about. 

Car Insurance

Car accidents can happen to anybody. Regardless of whether it was your fault, the other driver’s fault, or the car company’s negligence, you need a financial product that softens the financial blow of the accident. Car Insurance companies sell policies at a monthly, quarterly, or annual premium to protect you from huge bills. 

These bills can include car repairs, medical bills, and any reparations for emotional distress. If you caused the accident, you need liability insurance, and if you suffered the accident, you need collision insurance. All these things are discussed with an auto insurance provider or brokers at the time of purchase. 

Home Insurance

Homeowners Insurance, or simply home insurance, is a type of policy that ensures both your property and your liability at the same time. It covers damages from natural disasters such as fires, thunderstorms, and more and damage to property that you caused. 

In some cases, this can include damage done to pets or property theft. This all depends on your type of policy. All these things are paid for in one premium that is paid monthly, quarterly, or even yearly, depending on the insurance provider. 

Life Insurance

Life insurance is a type of insurance in which you pay premiums for the extent of someone’s life to get paid when they die or if they suffer a serious illness. Some buy the policy for themselves or for someone else. 

For example, a son can buy life insurance for his father and get paid money when his father dies, or the father could purchase life insurance for himself and designate his son as the beneficiary or one who gets paid.  

It is not just anyone who can buy life insurance if it has to be a close family member, friend, or even business partner. They must be able to prove that when the other person dies, they will suffer a loss. Sometimes, life insurance also covers funeral costs. 

Title Insurance

A title Insurance policy is a special insurance that is paid with a one-time payment. This is for when a house is being sold, and the title or deed of the house is being passed from one owner to another. The money from the sale of the home is used to make the payment. 

Unlike other policies that pay premiums for future damages, title insurance pays for the liability of previous damages the old homeowner let happen. Home Buyers and lenders need to purchase this insurance as you can never know how much the previous owner damaged a home. 

Health Insurance

Health Insurance is another kind of insurance with regular payments. These policies cover some or all of your medical expenses when you go to the doctor. Some insurance policies are only for when you get admitted to the hospital and get treatment there. Others are for OPD visits as well. 

There is special health insurance for people who are critically ill or old. These can include coverage for medical services that are done in the sick person’s home as well. There are also special government or subsidized versions of health insurance.