5 Main Types Of Insurance Policies

Insurance generally covers the situation involving loss of pure risk such as fires, floods and other accidents. Sometimes people buy insurance to cover certain types of financial losses such as a football player to pledge his feet against injury. There are five main types of insurance policies :
1. Life Insurance
Life insurance policy is an insurance company that will pay a certain amount when the person died. Usually are paid in a lump sum or in installments to the heirs. Some types of life insurance policies allow the policyholder to save money. These policies have a cash value that is borrow money against the value of cash or surrender the policy for its cash value.
2. Private health insurance
Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, drugs, and other medical care. You can experience financial difficulties without private health insurance, particularly for serious illness or an accident due to the rising cost of medical care.
3. Property and liability insurance
Property and liability insurance will protect your assets against financial loss. Property insurance provides direct compensation property damage, if the policy is broken, or lost as a result of the danger. Liability insurance protects individuals and businesses against the financial loss if their actions result in injury or loss of property belonging to someone else.
Main types of individual coverage :
4. Homeowners insurance
Homeowners insurance provide protection loss due to damage to the owner of the home and its contents.
5. Automobile Insurance
Automobile Insurance protects policyholders against the financial loss from the accident.