5 Main Types Of Insurance Policies

In life, an unforeseen or a sudden expense can significantly hamper your financial security. Depending on the magnitude of the emergency, some fatal incidents can leave you debt-ridden. Therefore, individuals should consider purchasing insurance policies that cover unplanned expenditures, particularly in the long run. The right insurance policies will play a great role in minimizing financial liability from unanticipated future occurrences.

Currently, there’s an array of insurance policies that’ll protect your health and assets, such as life insurance, travel insurance, property insurance, health insurance, mobile insurance, etc. If you’re looking for a reliable insurance cover, visit https://www.ocbc.com/personal-banking/insurance. The main objective of insurance is to cover your assets and unexpected situations that can disrupt your well-being and property. However, before investing in a certain type of insurance, it’s essential to understand the different insurance coverages.

Choose a policy that matches your needs. Below are the main types of insurance policies:

1. Motor Insurance

Motor insurance is a policy that covers damages in the event of automobile accidents. There are different types of motor insurance, including comprehensive cover, third-party liability, and own damage cover. Motor insurance is subdivided into three categories: commercial vehicle insurance, car insurance, and two-wheeler insurance. Below are some of the benefits of motor insurance cover:

– Financial assistance

– Meets third-party liabilities

– Prevents legal hassle

– Theft cover

2. Life Insurance

Life insurance is a contract offering financial support to the insurer’s beneficiaries, especially in the event of the insurer’s death. There are various life insurance policies: whole life insurance, term plan, child’s plan, endowment plan, money-bank, unit-linked insurance plan, and retirement plan. A life insurance policy will help secure your family’s financial future, offer tax benefits, and encourage saving habits.

3. Travel Insurance

Travel insurance ensures that you’re financially protected during your trip. Unlike other types of insurance policies, travel insurance is classified as a short-term insurance cover. The most common types of travel insurance include home holiday insurance, domestic travel insurance, and international travel insurance. Travel insurance can cover baggage loss, flight delays, and trip cancellation. In addition, it can help you reclaim lost travel documents. When looking for a reliable travel insurance provider, choose a firm with an excellent reputation.

4. Health Insurance

Health insurance provides financial support when you’re admitted to a hospital. In addition, some health insurance providers will cover costs incurred before and after hospitalization, such as home care treatment. Lately, there’s increased inflation in the medical industry; therefore, it’s important to purchase reliable health insurance. There are many different kinds of health insurance policies:

– Group health insurance

– Individual health insurance

– Maternity health insurance

– Critical illness cover

– Personal accident insurance

– Family floater insurance

– Preventive healthcare plan

The best health insurance policy will offer tax benefits, cashless claims, and medical cover.

5. Property Insurance

Property insurance offers financial assistance in the event of damages caused on a commercial or residential property. There’s a wide range of property insurance policies: building insurance, shop insurance, home insurance, and office insurance. This type of insurance will cover Natural calamities, fire outbreaks, floods, and burglaries. Renovation and reconstruction of a property are pretty expensive. Therefore, consider buying affordable property insurance.

In conclusion, there are certain aspects that you should consider when buying an insurance policy, such as value, service benefits, speed of settling claims, and affordability.