There are numerous types of insurance. Some are mandatory as per the law while other policies are optional. Regardless, insurance can be a benefit to any individual who has it. They provide an array of protections and costs savings that outweigh the cost of taking out the insurance. Listed in this read are several descriptions of some of the different types of insurance and their benefits.
Health insurance relieves the policyholder the financial hurdles brought about by medical care. Depending on the type of policy, the policyholder is responsible for a certain percentage of the overall cost of healthcare. Some policies ideally include a prescription plan that helps the holders with the costs of drugs. Health insurance policies are usually purchased individually but they can be purchased as a group as well.
This is a form of insurance that pays benefits to the named beneficiaries in the event the policyholder dies. This relieves those left behind the financial burden that comes with funeral expenses and outstanding debts of the policyholder. Any additional benefits are divided among the beneficiaries to use as they deem fit. Some policies in life insurance allow the policyholder to borrow against the policy should an extreme financial situation come up.
This is one type of insurance that’s mandatory by law but has an array of benefits. Car insurance can keep the owner from having to completely cover the damages caused by him or her in an accident. Depending on the insurance plan, it can ideally cover for damages done to the owner’s car. An uninsured driver add-on can sometimes be added to protect the insured person in the event he or she is involved in an accident with a motorist who is not insured.
This kind of insurance protects the house of the policyholder and takes away the financial hurdle should the house sustain damage. Homeowner’s insurance not only covers the holder from harsh acts of nature, but also from claims like slips and falls or any injury that may happen on their property. The coverage available can be extended by purchasing add-ons to the basic policy.
Dental insurance helps the subscribers pay for oral or dental care. As with health insurance, this one helps relieve the financial burden that comes with dental care. It usually covers preventative care and basic as well as some major dental procedures. Different policies under this type of insurance cover the policyholder for various percentages of oral care. Dental insurance can ideally be purchased either individually or as part of a group.
These are just some of the different types of insurance out there. Everyone can benefit from insurance in one way or the other. Most people avoid it because they see it as an added and unnecessary expense. However, that could not be further from the truth as the premiums are far more manageable than the costs one would incur should an accident or any other type of damage occurs.