Insurance, Types of Insurance

Insurance is something that almost all of us will need sometime, and it is worth understanding it before buying it.

Various types of insurance include vehicle insurance, which includes auto, motorcycle, and boat insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, keyman insurance, dental insurance, rental insurance, and more.
Often, insurance is required - especially in the cases of motor insurance. Other times, it is a safeguard.
Insurance is a form of risk-management which spreads risk of many people in exchange for small payments from each. Specifically, insurance transfers some type of risk (accident, theft, natural disaster, illness, etc) from one person or group to a more financially-sound entity in exchange for a payment (also known as an insurance premium). Premiums are often annual or monthly, but depending on the type of insurance they can be at other intervals.

For example, a consumer can pay a certain amount to an insurer such as Motley Fool each year to insure that person's car. This sum represents the insurance company's assessment of the likelihood that the car will be damaged or wrecked. These data are normally taken from historical figures relating to the age, sex, profession, driving record, and accident history of the insured, as well as statistics concerning make and model of the car and its accident record, as well as the engine size, number of passengers, and even color of the vehicle.

Statistically, if the make and model of the vehicle in question, and/or its driver have been in numerous accidents, the insurance company will charge a higher premium in order to hedge expected losses. As the risk increases, so too do the premiums. In fact, sometimes, insurance companies will not even insure certain people and/or vehicles as the chance of them having to make a payout (in the event of an accident) will be almost guaranteed.
Types of Insurance
1.Motor insurance
This includes automobile, truck, motorcycle, aircraft, boat, or any other form of motorized transportation. It is perhaps the most common type of insurance, and is required by law in many countries.
Motor insurance covers the insured party against financial loss that he may incur to repair his vehicle or a third party’s in the event of an accident. In return for annual or semi-annual premiums, the insurance company is bound to pay any losses as described in the policy. Such a policy may include property, liability or third party, and medical coverage.
Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insured’s actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in some cases foregone wages and funeral costs.
In many countries, all of these types of automovile insurance are required of vehicle owners. In some countries, or states, only third party is required. However, in the case of new vehicles, any banks which may be financing the vehicle may require full insurance as a condition of financing.
If you have a larger vehicle, take a look at Autonet Van Insurance.
2.Health insurance
Most developed nations have government-funded health care which means that most or all citizens have access to medical facilities and treatment, as well as health insurance.
For example, the National health Service (NHS) in the United Kingdom pays for citizens’ medical needs. However, in the US, there is no government-funded health policy - whether for insurance or treatment. As a result, US citizens and residents must be insured or risk facing astronomical medical bills, garnishing of wages, and bankruptcy. Often, medical insurance (both health and dental) is included in employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is one of the most controversial and heated topics, as many cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance is a vital requirement.
3.Disability insurance
This form of insurance protects workers from injuries and illnesses which prevent them from doing their jobs. It can pay for existing commitments the policyholders may have such as outstanding bills, mortgages, utilities, and more.
Workers’ compensation is common in the US, and pays a worker his wages and medical expenses in the event of an injury on the job.
Permanent disability which prevents a worker from ever working again is covered by total permanent disability insurance. This provides the disabled employee with benefits for the rest of his or her life, or according to the terms specified in the policy. Companies can purchase a similar type of insurance, called, disability overhead insurance. This pays for ongoing overhead costs of a business while the owners are not able to work.
A Catastrophic Health Insurance plan, also known as a high deductible health plan, is good to have for those who prefer to pay lower monthly premiums. If your plan is eligible for a Health Savings Account, you can use those funds to pay the deductible and out-of-pocket expenses which saves you money in the long run.
4.Property insurance

This type of insurance typically covers things like homes, machinery, crops, valuable goods, shipped cargo, rented property (homes or apartments), and more.
It can cover damages as a result of various activities including acts of God (earthquakes, floods, storms, hurricanes, etc), vandalism, terrorism, fraud, and more.
5.Liability insurance
This covers negligent acts of an insured party with reference to a vehicle or a home. It protects the insured against legal claims and indemnification.
There are various types of liability insurance such as professional indemnity insurance Environmental liability insurance and Prize indemnity insurance .
Professional indemnity insurance protects employees from malpractice suits (as in the medical profession), errors and omissions (by appraisers, home inspectors, realtors, insurance agents, notaries, and others), and other acts of unintentional workplace negligence.
6.Credit insurance
This is taken by lenders who need coverage against the people that have credit with them (borrow money). In the event of their inability to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender.
There are many other kinds of insuance, and even each of the major categories mentioned above has dozens of variations and types. They differ depending on the markets, the understanding of risk and availability of historical data, government regulation and law, cultural perceptions and expectations, and more.
7.Travel insurance
Travel insurance covers financial losses caused by trips abroad. Depending on the policy in question, in may cover lost luggage, theft of personal possessions, medical costs and delayed flights.
The internet has become an extremely popular means to find cheap holiday insurance.

Life Insurance

Life insurance is a kind of agreement made between a living person and an insurance company. In a life insurance policy, the insured person must pay a regular fee (called a premium) to the insurance company. In return, the insurance company will pay a pre-determined sum to the insured's family upon his or her death. Most life insurance policies cover both natural deaths and accidental deaths.

There are many kinds of life insurance policies on the market. Some of them are:
Temporary Life Insurance: Temporary life insurance policies offers life insurance coverage for a limited period of time. Temporary life insurance premiums buy protection for nothing else but death. If the insured outlives the policy, nothing is paid.
Permanent Life Insurance: Permanent life insurance is a kind of insurance that stays valid until the policy gains maturity or the policy holder fails to pay the premium within due date. Permanent life insurance can be of three types: Whole life, universal life and endowment.

Accidental Death Life Insurance:Accidental death life insurance is a limited policy which covers the life insurance policy holder at the time of his death due to an accident. This type also makes settlements, or payouts, in the event of loss of fingers, eyes, hearing, legs, arms, or other body parts, due to an accident.

Anybody who has dependents (children or a spouse that relies on this person's income) should invest in life insurance. In the event of his or her death, the insurance settlement will cover the lost income resulted in that person's death.
To know more about life insurance one can browse through the following topics:
Life insurance policies cover losses that arise from the loss of one's life or other accidents. Find various life insurance policies here.
Life insurance companies sell life insurance products, protecting against loss of income in the event of death.
Life insurance rates are the premiums paid by the insured parties. They can be broadly categorized into the preffered category, preferred plus category and standard category.
Get detailed on the various life insurance categories before you purchase your life insurance policy.

-- Medical Insurance

Medical Insurance Coverages and Policies

Medical insurance has always been important to people and for those who have been able to afford coverage this type of insurance provides peace of mind.  Unfortunately, millions of people in this country have had to do without medical insurance.  For some, the problem has been losing a job and the coverage that went with it or being employed but not having the finances to afford insurance.

Two weeks ago, President Obama signed into law a new healthcare reform bill passed by Democrats in Congress that requires all Americans to have some type of medical insurance.  Obviously, people need coverage but the challenge is for those who cannot afford it, how would the policy be paid for.  Understanding this complex obstacle, the government is working hard to create more jobs so people will have the healthcare needed.
To protect yourself in case of illness or injury, but also to meet the demands of the new law while not being penalized, you need to start thinking about medical insurance.  You want to spend time looking at different types of policies, as well as monthly premiums.  One place to start would be with local insurance companies, which is a great option but if you want to have more possible choices, you might also look online.

Today, literally hundreds and hundreds of insurance companies from all across the United States and other countries sell policies online.  In fact, for medical insurance, online businesses are very competitive.  For you, this is a serious advantage because you would be able to request quotes from as many of these companies you want and then take your time without feeling pressured to review the details and pricing.

You may want to choose a medical insurance policy that offers the bare necessities.  In this case, the policy would provide doctor’s office care and emergency hospital care.  However, for a more in-depth policy, you would need to consider services that go beyond the standard coverage.  For instance, if you were concerned about being hospitalized, then you need to consider a policy that would offer coverage for an extended stay.
On the other hand, if you wanted to purchase a policy for medical insurance but you also needed coverage for both dental and vision, then it would be important to look at these policies and prices too.  Many of the online insurance companies sell all types of coverage, meaning you could buy medical coverage, as well as prescription, dental, and vision coverage from the same company
The great thing about online insurance companies is that they often create special networks of doctors, dentists, optometrists, and others, meaning you would have access to a greater number of healthcare professionals.  Because of this, the opportunity for finding the exact policy needed but one that would fit your current financial situation is great.
In fact, if you were provided with a quote from one company but you liked a policy a little more from another company, you might ask if they can meet the price of the first insurance provider.  Often, they will do everything possible to get your business so negotiations for medical insurance are never out of the question.

Mortgage Insurance

What is Mortgage Insurance?

Simply insurance that protects the lender if in any case the homebuyer does not make their respective mortgage payments is called as mortgage insurance. It can be defined as a financial guaranty that protects the lenders against the loss. In any case if the borrower is found to be defaulted and the lender takes the title of the property then the mortgage insurer reduces the loss to the lender. More over in case of mortgage insurance, the insurer haves some risk by lending money.
Payment Structure In Mortgage Insurance:
In case of the mortgage insurances, an initial premium is collected at closing and depending on the premium plan; a monthly amount may be included in the house payment made to the lender. The general types of the premium plans in case of the mortgage insurances are as follows:
For the Annuals the borrower pays the first year premiums at a closing.

In case of the monthly premiums, the cost burden is more than the traditional mortgage insurance plans. In Singles borrower pays the one time single premium.

Private Mortgage Insurance (PMI)
The private mortgage insurance deals only when down payment on a home is less than 20% of the sale price. This enables for getting a mortgage with lower down payment as the lender is protected from the default on the loan.
The rates on the private mortgages vary depending upon the size of down payment and the loan. Mortgage insurance premiums are generally tax deductible.
Mortgage Insurance Companies Of America (MICA)
Six Private Mortgage Insurers comprise MICA'S membership, which are as follows;

• Genworth Financial, Inc.
• Mortgage Guaranty Insurance Corp.
• PMI Mortgage Insurance Company.
• Republic Mortgage Insurance Company
• Triad Guaranty Insurance Corporation.
• United Guaranty Corporation.

Home Insurance

Home insurance (or home owner's insurance) is a type of property insurance. One's residence or home, including all its contents, is within the category of home insurance. The cost an insurer pays for a homeowners insurance policy is determined by taking into account the replacement cost of the home along with all of the home's contents.

These values are normally determined by the value of the home as dictated by the property market and what amount similar homes sell for in that area. Different cities or countries will determine this value differently.
A home insurance policy generally remains active over a specific time period, during which the insured has to pay premiums, i.e. money paid towards insurance costs every term, to the insurer (usually the insurance company).
However, home insurance that is not contracted over a fixed time period may also be obtained by the insured and is called perpetual insurance.

Home Insurance: Cost of Premiums

The amount to be paid towards premium depends largely on the vulnerability of the home that is insured. The more susceptible the home, the larger are its premiums. In other words, a home in an area with many or frequent natural disasters may be very costly to insure. For example, insuring a house on a beach cliff that is quickly eroding may be a very expensive proposition. In an extreme case, insurance companies may not insure it at all.

Home Insurance: Different Contingencies

In addition to home insurance including the home and all its contents, it can also cover against any or all of the following:

• fire or lightning and smoke
• storms of all kinds
• explosions
• riots or civil commotion
• burglary
• breakage of glass
• vandalism, hooliganism and vindictive mischief

Understanding Home Insurance

Here is some information to help you understand home insurance better:

• Home insurance company: Rates charged by home insurance companies generally differ from one to another. They offer different types of policies, for different degrees of coverage, and operate in different countries and regions. Find different rates charged by various home insurance companies, and how their products differ.

• Home insurance coverage: Home insurance coverage mainly covers one's residential home with all of its contents. Get detailed information on home insurance coverage.

• Home insurance brokers: Home insurance brokers generally act as a medium between the ultimate customers and the home insurance companies. Know more about home insurance brokers before making a purchase.

-- Fire Insurance

Fire Insurance, Fire Insurance Policy

A fire insurance policy involves an insurance company agreeing to pay a certain amount equivalent to the estimated loss caused by fire to the insured, within the time specified in the contract. The indemnity is subject to change depending upon the policy. One should confirm with the insurer about the types of risks covered, since one cannot insure the property against all types of risks of fire.

What is the extent of coverage under a Fire Insurance Policy?

Fire insurance provides protection for the estimated value of the physical house. However, there are a number of exclusions to the same, for example medical bills, loss of human life and pets, loss of personal belongings, structures outside the property (including garages and gazebos), damage to the landscape and expenses for accommodation for the time being. These things can be covered under a package of extended property insurance.

What are the main types of Fire Insurance policies?

• Specific Policy: The insurer is liable to pay a set amount lesser than the property’s real value. In this policy, the property’s actual value is not considered to determine the indemnity. The average clause, which requires the insured to bear the loss to some extent, does not play a role in this policy. In case the insurer inserts the clause, the policy will be known as an average policy.
• Comprehensive policy: This all-in-one policy indemnifies for loss arising out of fire, burglary, theft and third party risks. The policyholder may also get paid for the loss of profits incurred due to fire till the time the business remains shut.
• Valued policy: This policy is a departure from the standard contract of indemnity. The amount of indemnity is fixed and the actual loss is not taken into consideration.
• Floating policy: This policy is subject to the ‘average clause’. The extent of coverage expands to different properties belonging to the policyholder under the same contract and one premium. The policy may also provide protection to goods kept at two different stores.
• Replacement or Re-instatement policy: This policy is subject to the re-instatement clause, which requires the insurance company to pay for replacing the damaged property. So, instead of giving out cash, the insurer can re-instate the property as an alternative option.

Why does one need Fire Insurance?

Fire insurance is important because a disaster can occur at any time. There could be many factors behind a fire, for example arson, natural elements, faulty wiring, etc. Some facts that stress the importance of fire insurance include:

• Fire contributes to the maximum number of deaths occurring in America due to natural disasters.
• Eight out of ten fire deaths take place at home.
• A residential fire takes place after every 77 seconds.
• The major reason for a residential fire is unattended cooking.

Health Insurance

At its simplest, health insurance is an agreement made between a person and an insurance company. The person, or the insured, must pay a regular fee (called a premium) to the insurance company. In return, the insurance company will pay all or (usually) some medical expenses needed when the insured becomes injured, ill, or otherwise hospitalized

Health insurance is critical, especially to those living in areas where the costs of hospitalization are high. Most developed nations offer government subsidized medical care, which makes it less critical to have health insurance.
In the US, however, medical care is exteremly expensive, and is not paid for by the government. Therefore, it is wise for all Americans living in the US to have good health insurance policies.
Health insurance can be bought on an individual basis or on a group basis. Health insurance bought on a group structure usually is through an employer, as many employers provide health insurance coverage to their employees. And this is now becoming a big problem for Americans, with unemployment running so high; if you lose your job, not only do you lose your income - you are often also left without health coverage as well.

Double Trouble: Losing Your Job And Health Insurance

 Losing your job and becoming unemployed in any economy is never easy. For many people, in fact for most people, losing your job also means losing your health insurance coverage. The effect on the family can be devastating. Not only has an income been lost, but replacing the health insurance coverage for the family without an income as a double negative effect. As job losses continue to mount, the number of people who find themselves in this situation is staggering.

While the debate on healthcare reform continues to rage on, relief for those affected and who fall victim to the health care crisis, won't be coming anytime soon. People who are affected by this crisis need to be proactive about securing health insurance for themselves and for their families. There are some short-term strategies that you can apply if you find yourself in this situation.
The ideal situation if indeed you lost your health insurance, would be to be added to your spouses health insurance policy. That being said, this option is not available to everyone. Your second option would be to enroll in COBRA. What is cobra? COBRA, The Consolidated Omnibus Budget Reconciliation Act is a federal law that was passed in 1986 to require companies with 20 or more employees to continue offering health insurance at group rates to former employees and their family members. The coverage can be extended to 18 months from the time you leave your job. If the company that you were employed by goes out of business, they are not required to provide COBRA coverage. Finally your third option is to search for an insurance policy on your own.
For many people the cost of continuing coverage through COBRA is prohibitive. Employers generally pay a percentage of the cost of family health coverage for their employees. If you lose your job, you are on the hook for the full amount. Since you just lost your job and your income being able to afford COBRA, isn't really an option.
Even the most disciplined of persons, who saved money for the rainy day that they are now experiencing, this is difficult. Health insurance premiums can quickly wipe out an emergency fund long before you either find another job or the 18 months that you can qualify for COBRA expires.
One of the benefits of COBRA is that you can be rejected because of your health. So for those with pre-existing medical conditions COBRA becomes the best option, because affordable health insurance coverage is generally not readily available for pre-existing conditions. The key is affordable health insurance coverage. There are many insurance companies who will cover pre-existing conditions if you are willing to pay exorbitant premiums and accept exclusions in your policy.
As for the second option of being added to a spouses health insurance plan, this is a great way to deal with the loss of your health coverage. However, not everyone is fortunate enough to have an option of choosing between two health insurance policies. However, if you do have an option like this, you would do well to take advantage.
The third option of shopping for individual policy on your own is the scenario most people have to deal with. Affordable health insurance coverage is as difficult to find as any insurance coverage on the market. Again you are dealing with no income and potentially creating another family budget expense. The key to finding affordable coverage is diligence in your shopping.
If you are healthy and young you should not have any trouble finding health coverage. If you are older and have pre-existing conditions, you may be forced to reduce coverages in order to afford the premium. If you are rejected by private insurers most states offer high-risk pools. Again, the premiums for such coverage will not be inexpensive.
Choose from a list of health insurance companies that provide coverage in your area. Decide whether you want to shop for the coverage on your own or to employ the services of an insurance broker. An insurance broker generally represents several companies and knows the markets and what is available in the way of insurance coverages. Insurance brokers are very helpful in this regard. Essentially you can let the insurance broker do all the work and all that would be left for you is to choose a company based on your needs.
Shopping for health insurance coverage online has made it somewhat easier for individuals to compare and choose the best policies for their families. She gets a health insurance coverage that you are trying to buy is a stopgap type coverage until you get another job, you may consider getting health coverage that will pay for catastrophic illnesses. The more expenses that you are able to pay for out-of-pocket, the less premium you can expect to pay for health coverage.
As you can see the victims of job loss sometimes suffer double trouble, losing their health insurance coverage as well. These will be most stressful times for you and your family. In the United States it is estimated that 25 million people are without health insurance coverage. That number is more or less depending on whom you obtain your data from. The remedy for seems to be sometime in the future. Until then, individuals will have to be diligent, frugal, and creative to find affordable health insurance quotes or coverage for themselves and their families.