Advantages of the Different Types of Insurance

With the current number of accidents increasing daily, many firms are taking insurance seriously, which has led to the emergence of different insurance policies. People globally register themselves with various companies either for their health or for property. The government has set up rules and regulations to oversee this vast growing industry to make sure companies do not exploit individuals and vice versa. Here are the kinds of insurance plans that can be obtained from different providers.

  • Life insurance

It provides double advantage to the insured since it acts as a saving plan and as a security. Since these days, life is full of uncertainties; it is recommendable for people to take this type of insurance. It ensures that their loved ones continue to enjoy a good quality life even when the person they were depending on, passes away. Not only does it act as a financial support in case of unanticipated death, but it also serves as a long time investment.

  • Health insurance

This offers protection against critical diseases and hospitalization expenses. This kind of insurance is of great importance today with the escalating number of illnesses and huge hospital bills. It is a long time contract with a fixed amount of premiums to be paid at a specified period. It is the best tool for retirement planning since the money saved during the earning life span is used to provide income during retirement.

  • Fire insurance

This is a specialized kind of insurance since it is designed to cover the cost of replacement or repair that is covered in the property. When possessions include valuable items, it is good to consider this type of insurance. In the event of a fire loss, the insured should report it immediately to the company within 15 days after the occurrence. They should give the details of damages and the estimated values. Fire insurance companies make certain that they do not close down due to fire loss. With this type of coverage, industries are able to expand without fear of losing their capital by accidental fires.

  • Property insurance

It covers a wide range of things such as weather damages and theft. It includes flood insurance, home insurance, and earthquake insurance. Property is covered against such events in two major ways; named and open perils. Open perils covers all causes of loss, which might arise and is not excluded in the policy. The named perils require the actual cause of loss, which is listed in order for payment to be made. It is a short-term contract. Hence, it does not restrict an individual to stick in one company, which he or she might want to change. The contract is flexible thereby allowing policy holders to change it as the property appreciates or depreciates in value.

The insurance company brings many benefits in a country and the world in general, as it creates employment to people who work in this institution. It gives the government revenue in terms of tax collection. In case there is no risk, which has occurred, the money collected from the large pool of contribution is used for various investments. In short, insurance companies have really improved the living standard of people, becoming a partner in boosting the economy of the country.