The Different Types of Insurance Policies
There are many hazards that come with the business of living.
This is why insurance was devised, to help cover the potential losses in income and to cover exorbitant medical costs. But what different types of insurance are there?
It turns out there’s an insurance policy for practically everything—including alien abduction insurance, asteroid insurance, and even facial hair insurance.
But rather than examine those outliers, let’s take a look at a few of the more common forms of insurance.
1. Medical Insurance
Medical insurance is by far one of the most important types of insurance.
In general, medical insurance is coverage that helps with surgical, medical, and even prescription drug expenses. Medical insurance is very often included in employee benefits packages. This is for the obvious reason that it helps attract quality talent.
Medical insurance works either through directly reimbursing the insured, or making direct payments to the healthcare provider.
2. Disability Insurance
Accidents happen, and sometimes that leads to the loss of a job and income.
This is where disability insurance kicks in. Its purpose is to provide a source of income in the event of a disabling injury or medical condition. In practice, that means disability insurance is required to compensate a worker for lost income resulting from the injury.
Of course, this is one of the types of insurance that also entails the strictest conditions. This is because disability insurance is often liable to abuse.
3. Life Insurance
Life insurance is another very important type of insurance policy.
The purpose of this form of insurance is to guarantee the financial security of the policyholder’s family members after his or her death. Much like disability insurance, this is to insure against the loss of income that the policyholder’s death would mean.
4. Dental and Vision Insurance
Dental insurance and vision insurance are both forms of more specialized medical insurance.
Dental insurance is, as the name suggests, geared toward helping defray the costs of a visit to the dentist. These insurance policies are also usually more straightforward than a medical insurance policy. They make it easy to understand which procedures are covered, and what your out-of-pocket expenses amount to.
Vision insurance, on the other hand, is designed to cover the routine expenses involved in eye health. These include eye exams, eyeglasses, and contact lens expenses, and sometimes even a discount on LASIK procedures.
One of the nice things about vision insurance is that it tends to resemble a discount or savings plan rather than a full insurance plan. And they’re often inexpensive, too. The reason is that expensive claims and payouts are rare, and the covered procedures are routine and predictable.
Know the Different Types of Insurance
These are just a few of the more significant types of insurance policies that you can get.
Whether it’s a life insurance policy to help your loved ones or a medical policy for your own wellbeing, it’s important to consider getting the right insurance policy. So, if you’re looking for a great insurance plan, please don’t hesitate to contact us today at Semple Solutions.