Monday, October 19, 2015

The Benefits Of Insurance

Insurance can have many advantages depending on the type that is purchased. The most common type is known as personal insurance, which includes automobile, life, homeowners, disability and health. The biggest advantage of insurance is the benefits that are paid when a claim needs to be filed. Claims can include damage to a vehicle or home as well as costs for various types of medical expenses.


Automobile Insurance


Auto insurance has various types of coverage that pay benefits when an accident occurs to an insured vehicle. Policy coverage includes liability or bodily injury coverage, property damage, collision and comprehensive coverage. There are also laws in each state that require insurance companies to provide a minimum amount of liability on an automobile policy. States also have laws that require residents to have insurance on the vehicles they drive.


Homeowners Insurance


A homeowners insurance policy is designed to protect a homeowner against various types of risks that can cause damage to his home or property. Homeowners policies provide coverage for risks such as fire, theft and damage from storms. A homeowners policy will also provide liability protection if someone gets hurt on an individual's property. Anyone who owns a home and has a mortgage is usually required to have a homeowners insurance policy by the mortgage lender.


Life Insurance


A life insurance policy will provide a benefit to a dependent or beneficiary when the insured person named on the policy dies. The most common type is permanent life insurance such as whole life or universal life. These policies provide a cash value component that term life and simplified-issue policies do not. The advantage of a life insurance policy is that it will provide funds that can be used to pay bills and other costs that are left behind. This can include funeral costs, house payments and car payments.


Disability Income Insurance


A disability income policy provides protection for an individual if she becomes ill or gets hurt and cannot work. Many employers that provide health insurance coverage for their employees include short-term and long-term disability insurance coverage. A disability income policy can provide financial support to pay credit card bills and mortgage payments. Insurance companies that make this policy available price it according to the occupation class or category of an individual.


Health Insurance


Health insurance has many advantages, depending on whether or not an individual can obtain an affordable policy. Many health insurance policies are provided by an employer, but an individual health insurance policy can be purchased as well. A health insurance policy will pay for medical expenses such as hospital stays, surgeries, prescription costs and doctor visits.