Common Types of Insurance Policies

Since no individual can accurately predict the future, it can be a wise and sound option to hedge yourself from financial ruin. One of the easiest ways to do this is to purchase insurance. There are many types of insurance policies, one for each potential catastrophe. Some of the more common forms are life, auto, health, marine, accidental death and earthquake insurance. Within these types of insurance there are sub-categories for specific insurance protection. There is an insurance category specific to your needs. While there are many carriers for insurance, there are equal amounts of premiums. Researching before you purchase a policy can find you the best coverage for your need as well as the best price for your budget.

Within the life assurance category, you will find options such as term life, whole life and accidental death and dismemberment (AD&D) policies. Term life is a straight life insurance policy. You purchase the policy at a certain age and typically the premium remains the same as long as you keep it current. You will pay a monthly premium which when you stop paying, the policy expires. Whole life coverage is basically a term life policy in addition to some sort of savings plan. You pay your monthly premium, which is higher than a term policy, but a portion of your premium is set aside into a savings account. Typically these savings vehicles are a mutual fund. AD&D is often what employers will provide their employees at no cost. It is a policy where the beneficiary is paid only when the policy holder dies or loses one or more appendages within the policy’s strict guidelines. It is not a standard term policy.

Other common types of insurance policies are health insurance, auto insurance and marine insurance. Health care coverage comes in a variety of plans. You can have low deductibles with higher co-pays or high deductibles with low co-pays. There are many options among health care insurance and there is certain to be one that will meet your individual budget. Auto and marine insurance are straight forward. Auto insurance covers your motor vehicles while marine covers your watercraft.

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