Posted by: Allison Franklin, Group 1A
When most people think of insurance they do not realize how many different types exist. Today, insurance can be purchased for just about anything you can think of. However, there are a few common insurance types that everyone should be familiar with and have. These are:
1) Health Insurance- Health Insurance helps people cover the costs of their medical expenses. With the rising costs of health care, it is extremely important that people have good health coverage. Health insurance can be expensive, but many employees offer it to their employees as part of a benefit package and it is something that needs to be taken advantage of.
2) Life Insurance- Life Insurance provides money to the family of an individual after he/she passes away. The money can be specified to a go to a specific beneficiary in the family and it can be used to cover the funeral expenses. Another important aspect of Life Insurance is that some build cash value, which means they can be borrowed against by the insured if a situation arises where he/she needs money.
3) Homeowners’ Insurance- Homeowners’ Insurance protects the value of the home as well as the belongings inside of the home against loss or damage if a natural disaster hits. Everyone should have some Homeowners’ Insurance as the home is the largest investment that a person makes, and it needs to be protected. However, depending on what part of the country a person lives in he/she may need extra coverage.
4) Auto Insurance- In the United States it is usually mandatory to have auto insurance. Auto Insurance protects the person if his/her car is damaged in an accident and can also cover medical expenses related to the accident. Having auto insurance also protects the individual’s liability in the accident as the insurance helps to protect them if the accident is their fault.
There are many other types of insurance, these are just the four most important.
Sources:
1)"Insurance." http://en.wikipedia.org/wiki/Insurance
2) "Types of Insurance." http://www.essortment.com/all/typesofinsuran_ruqc.htm
3) "Types of Insurance Policies."
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