Insurance may be defined as a means of protection that arises during a financial loss in which an exchange of fees takes place between a party that agrees to compensate another party in the event of certain loss, injury, or damages.
The party that provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. The one who buys insurance will called the policyholder. And the one who is covered is called the insured. The amount given for protection is called policy, and the point at which the insurance reaches the endpoint is known as maturity.
This article will give you a quick brief on the types of insurance that one must be aware of in the US.
1] Automobile Insurance
This insurance provides protection and covers risks of financial liabilities of any motor vehicles that the owner may face if their vehicle collides with another vehicle and results in property damages. Consumers may be protected at a different level of coverage depending on the policy they have purchased.
If someone who is uninsured or underinsured suddenly hits anyone, then the insurance will cover both medical as well as auto mobile insurance. USA is the top automobile insurance company with a 73% satisfaction rate and 63% recommendation rate, and the American family is another leading contender that can be a good option.
2] Life Insurance
Life is so uncertain, so to make it safe and secure, people tend to buy life insurance that pays a lump sum amount to the beneficiaries upon the death of the insured. A life insurance policy provides financial protection to one’s family. In the event of sudden demise, the policy pays out a pre-agreed sum of amount to beneficiaries.
A life insurance policy is also helpful in covering critical illnesses like heart disease, cancer, etc and it is also helpful to get tax benefits. So anyone who has life insurance has a dual benefit of both, insurance and tax benefits.
Northwestern Mutual is one of the leading life insurance companies, having a market share of 11.4% and offering term life, whole life, and universal life insurance. Mass Mutual, New York Life, and Prudential are some leading life insurance companies that are doing so well in this field.
3] Health Insurance
To maintain a healthy and prosperous life, it is important to get assured that the help of insurance can cover all the expenses that arise due to medical emergencies, from hospitalization to operation and afterward bed charges to medicine; everything is covered.
It provides financial stability during emergencies and covers all the rising costs. As day-by-day medical costs are increasing, it is hard to bear all the costs at the same time, and to avoid this problem, one must take insurance. Aetna. American Family Insurance, Bright Health, a leading health insurance company that anyone can choose and their family’s good health.
4] Long Term Disability Insurance
A disability may be defined as a condition where one person is unable to work, whether mentally or physically. This insurance is helpful for a person who has been disabled for a long time and is unable to earn for a long time due to an illness or injury. It can be so helpful in paying off the medical bills and living expenses while the person is recovering from a disability.
This insurance amount is either paid by the employer or by the individual, depending on the source of the policy. Mutual of Omaha is a company that offers long-term disability insurance and a maximum monthly benefit of $ 20,000. Bruce Thomas Eason is another company that provides a facility for life, health, and long-term disability. One can check out their website for more information and understand what type of coverage is required.
5] Renter Insurance
This is insurance that covers damages and loss due to fire and vandalism for a person who has rented a flat and also provided furniture or fixtures. The renter insurance includes coverage of personal property. If someone is liable for any kind of damage or injury to someone else, then this insurance will pay for the cost involved. State farm and Westfield are the best rental companies in the US.
Over To You
In today’s era, when the rate of everything is rising, and the cost of medical expenses is rising so, one must buy insurance that would help decrease the burden of money in times of emergency. So this article will provide brief information about the type of insurance that one can opt for when living in the US.
