The insurance policies are categorised into two different categories. i.e.:
- General Insurance policies cover everything other than life.
- Life insurance policies which cover a person’s life.
In this blog, we have elaborated on some of the major insurance policies in each category. Stick to the end to learn about the benefits and coverage options under every insurance policy.
General Insurance Policies
General insurance policies are a group of non-life insurance policies such as:
- Health Insurance
- Automobile Insurance
- Homeowners’ Insurance
- Insurance for Travel
- Pet Insurance
Health Care Coverage
Health care insurance protects you financially during any medical illness or injury treatment. This insurance will cover a vast range of medical and hospital bills. Following are a few types of health insurance policies:
Individual Health Insurance: Provides personalised medical coverage for individuals, allowing them to manage their healthcare expenses with a plan tailored to their needs and budget.
Family Health Insurance: Comprehensive health coverage for families, safeguarding the well-being of all members and offering peace of mind for unexpected medical events.
Senior Citizen Health Insurance: Specifically designed for elderly individuals, this insurance offers specialised coverage for age-related health concerns and ensures access to quality healthcare in their golden years.
Group Health Insurance: Offers collective health coverage for a group of individuals, often through employers, providing cost-effective and inclusive medical benefits for all members of the group.
Automobile Insurance
Automobile insurance is a financial contract between you and your insurance company to protect you from any financial damage in case of accident, theft and other damages to your car.
Auto insurance also protects you against any liability damage to property or a person caused by your insured vehicle. Automobile insurance is available for:
- Motorcycle
- Cars
- Commercial Vehicles
There are different policies available for automobile insurance that you can select for. For example, you can choose the options of liability insurance and medical coverage for your auto insurance if you want to. However, choosing more coverage options will increase your insurance premium.
Homeowners’ Insurance
A homeowners’ insurance is a policy that covers you against the damages to the property or the assets in it. Homeowners’ insurance generally covers these four kinds of damages:
- Interior Damage
- Exterior damage
- Loss of belongings
- Injury on the property
However, keep in mind that choosing different coverage options will define your insurance premium as well as the deductibles that you will have to pay during every claim against damages. You can find different homeowners’ insurance policies, such as:
- Home Building Insurance
- Public Liability Coverage
- Fire and Disaster Coverage
Insurance for Travel
Travel insurance is a short-term insurance policy that you can avail of during your domestic and international tours. This policy can cover you against a vast number of liabilities, including the following.
Trip cancellation coverage: It will cover you financially if your trip is cancelled or cut short for any medical or physical reason. Travel insurance will compensate for your bookings and travel tickets.
Medical coverage: It will also cover you against any injury or illness during your tour. This includes your medical bills and hospitalisations.
Lost luggage coverage: Your travel insurance will also reimburse you if your luggage gets lost or stolen during the trip
Pet Insurance
This type of insurance is particularly designed for pets. This insurance covers their injuries, medical bill and other issues, such as:
Veterinary expenses: Pet insurance will cover the medical bills for any kind of veterinary care, such as illness, preventive care, vaccinations, routine check-ups and injuries.
Types of pets: Many pet types are covered in pet insurance, including cats, dogs, exotic animals and birds.
Life Insurance Policies
There are the following major life insurance policies:
- Term life insurance
- Whole life insurance
- Critical illness cover
- Terminal illness cover
- Children’s cover
Term Life Insurance:
This insurance policy provides life insurance coverage for a pre-determined period of time, such as 10, 20 or 30 years. Upon the death of the insured person during the term, the family will receive a lump sum death benefit payout. However, if the person does not die during the term, the insurance policy will lapse, and there will be no payout. There are the following types of term life insurance available:
- Level term insurance
- Decreasing term insurance
- Family income benefit
- Increasing term insurance
Whole Life Insurance
This policy offers lifelong life insurance coverage as long as you pay the insurance premiums. It also includes a savings component which grows over the years and can be availed by the insured person for various purposes, such as loans or withdrawals. Following are the three types of whole life insurance policies:
- Over 50s guaranteed acceptance cover
- Whole life pure protection
- Whole life investment linked
Critical Illness Cover
This specific insurance policy provides financial protection in case of a serious injury or illness. It offers a lump sum and tax-free payout if the insured is diagnosed with a critical illness specified in the policy, such as cancer, stroke, organ transplant or heart attack. The benefit helps cover medical expenses and other financial burdens.
There are no restrictions on how you can use this money. You can use it for:
- Medical and hospital bills
- Renovation of your house
- Provide financial support to your dependants
Children’s Cover
This is a type of life insurance that specifically covers the lives of children. In the unfortunate event of a child’s death, this policy provides a death benefit payout to the parents or guardians to assist with funeral expenses and other costs. Some policies may also offer benefits if the child develops a critical illness or disability. It provides coverage for the following:
- Hospital and medical bills in case of injury and illness
- Child funeral benefit in case of death
- Childcare benefit
- Family accommodation benefit
Terminal Illness Cover
This policy provides an early payout of the life insurance benefit if the insured is diagnosed with a terminal illness and has a limited life expectancy, typically 12 to 24 months. It helps the insured and their family manage end-of-life expenses and financial needs.
Other Types of Insurance Policies
Marine Insurance
It provides financial protection against the loss and damage to the goods that are being transported by sea. It also covers the damage to the ship in case of fire, collision with rock or attack of pirates.
Engineering Insurance
It is a type of insurance policy that cover a wide range of financial risks associated with engineering equipment, such as damage to the machinery or equipment, an accident during the erection of a construction project or plant or loss due to a natural disaster.
Crops Insurance
Crops insurance is a risk management plan for farmers or ranchers to provide financial coverage against loss of crop due to any disaster or loss of profit due to a decline in market value.
Business Interruption Insurance
This is a type of insurance that specifically covers a business against its loss of profit and income due to any disaster, such as flood or fire.
Landlords’ Insurance
Landlords’ insurance particularly protects the landlords against the financial losses associated with the rental properties, such as damage to the property, loss of rent or public liability.
Flood Insurance
Flood insurance is a financial contract between the policyholder and the insurance company to provide financial coverage for damage and loss to the property in case of a flood.
