Insurance can be described as a form of risk management which is used to hedge against the risk of a possible loss. It can be considered a small loss to prevent a larger and devastating one.

Any risk that is possible to quantify can be insured. There are many different types of insurance that exist: auto insurance, home insurance, health insurance, disability insurance, life insurance, property insurance, liability insurance, credit insurance, travel insurance and others.

Auto insurance covers the financial loss in case you have an accident. It is a contract between the insurer (insurance company) and you. First pay the premium and the insurance company pays your losses according to the definition of your policy. Auto insurance provides property, liability and medical coverage.

Home or homeowner’s insurance provides financial protection against disasters. As a rule the policy insures the home and the things in it. This type of insurance is a package policy. It covers damage caused to your property as well as your liability or legal responsibility for any injuries and property damage you or your family members cause to other people (damage caused by household pets, for example).

Health insurance is a form of insurance that pays for medical expenses. It is a contract between an insurer and an individual. It can be renewed monthly or annually. Today ensuring health is very popular worldwide. There are thousands of companies that deal with international health insurance.

Life insurance provides a monetary benefit to a descendant’s family or may specifically provide for an insured person’s family, burial, funeral and other expenses. Life insurance policies allow the option of having the proceeds paid to the beneficiary in a lump sum cash payment or an annuity.

Property insurance provides protection against risks to property, such as fire, theft or weather damage. Property insurance includes fire insurance, flood insurance, earthquake insurance, home insurance and others.

Credit insurance repays a part of or the entire loan when something happens to the borrower, such as disability, unemployment or death.

Travel insurance covers expenses during travel, such as loss of personal belongings, travel delay, personal liabilities and so forth. Travel medical insurance covers medical expenses if you need some medicine or treatment during your trip.

You can insure almost every part of your life.

Photo: © stephanebenito

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