What Is Insurance?

What exactly is insurance? In simple words insurance is protection from unexpected loses. There are 7 common types that people use to protect themselves, their family and assets. Health, life, supplemental/gap, disability, long term care, homeowners/renters, and vehicle insurance are known for being the most used types of insurance. HEALTH insurance is a means to help lessen the financial burden of health problems that can take people by surprise. Medical providers can have large out of pockets costs. With health insurance there are options available, offering customizable plans that an individual can use to help with finances. LIFE insurance is designed to help leave a legacy for your family, or simply help cover burial costs. Recently companies have incorporated "Living Benefits" with life plans. These "Living Benefits" give access to a policies death benefit prior to the policy holders death, in the event of predetermined circumstances written in the policy. SUPPLIMENTAL insurance also known as gap insurance, gives coverage where health insurance doesn't. Health insurance is helpful but there are situations where coverage is not available. Customizing supplemental policies is possible, enabling people with different needs to acquire the coverage that is best for them. DISABILITY insurance provides partial income replacement for policy holders. There are unfortunate times in some peoples lives, where they are unable to provide for there family due to a temporary ailment or affliction. A disability policy can help lesson the financial burden that comes along with lack of income. The primary provider of a family can have peace of mind while holding a disability policy, ensuring that bills can be paid if they were to be disabled temporarily. LONG TERM CARE insurance assists with the costs of daily living for the elderly. These policies are customizable and are made to help up to a specified dollar amount on daily needs. Some of the things covered under long term care insurance are care in -Your home -Adult day service centers. -Hospice care. -Respite care. -Assisted living facilities (also called residential care facilities or alternate care facilities) -Alzheimer's special care facilities. -Nursing homes. HOMEOWNERS/RENTERS insurance gives protection to people who own homes and people renting. The homeowners can have coverage over damages specified on the policy both in the dwelling and the dwelling itself. There are options to add on extra coverage if the policy holder decides too. Renters insurance has some of the benefits that homeowners insurance does excluding coverage over the dwelling. Renters can have reassurance that their belongings are protected. VEHICLE insurance enables the policy owner to receive financial assistance for liabilities related to their vehicle. If there are liabilities/damages or medical costs in a occurrence with a vehicle. The policy will cover some of those costs whether it was the policy owners fault or not. Vehicle insurance is the most common insurance due to it being required by the law.