Three major types of insurances and their considerations

1. Health insurance

It allows the insured to cover up medical expenses while visiting a doctor and other major costs usually involved during surgeries. Generally, people get this insurance through their employers as a part of their employment. It usually has two arrangements. As per the type of coverage under consideration, either the person himself first pays the costs from his pocket, which is later reimbursed by the company, or the company itself makes the direct payment to the healthcare providers.

2. Life insurance

This policy is meant to provide financial safety and coverage after a person’s death due to accident, illness or any other natural cause. This policy generally comes in fixed values, which can later be modified during each enrollment period. The beneficiaries of the insured are usually his family such as children or life partner. This type of insurance can be purchased individually or may also be provided by the employer.

3. Rental or property insurance

This policy is meant to cover damages done to the rental or residential properties. Some common causes of damage, which are covered under it, would be fire, burglary, natural disaster, etc. This type of insurance plan is highly specific which only covers what is stipulated in the plan.