Understanding The Insurance Industry – Types Of Policies

For some time the insurance industry has been shrouded in mystery and has been ostracized for myths that have beleaguered it to the point of sometimes closing shop or doing away with certain products all together. However due to an intensive campaign to let the public know what insurance was all about and how it would help the different classes and categories of people, it has slowly picked up and saved face especially in terms of health, life insurance and general business policies.

There are many types of businesses and covers offered by insurance companies, but they are classified into three categories as umbrellas for most of the work they do. These are:

  • Life business

The insurance covers that fall under life insurance include those that cover risks on your life and your person such that incase anything happened to you, you would have something to fall back on. In life business you have various products such as investment in your children’s education such that you p a premium that matures in time for your child to go to school. This then ensures that your children are never out of school regardless what happens to you. The other products include retirement and pension savings, investment products, life covers such as family life insurance and other products that seek to cover companies from the loss of their key men such as CEOs known as the key man cover. You can also get the individual life cover or if you have employees you can take out a group cover to shield them from risks at work and outside the work place.

  • General business

General insurance business is the most common type of insurance business for insurance companies because it targets small-scale businesses and individuals for covers on their houses, cars, business premises and cargo. The covers include fire insurance, motor insurance for private and commercial vehicles, which are split into comprehensive, motor insurance, third party motor insurance, and theft insurance. There is also a cover that protects the people involved in the building of structures and buildings; masons, architects, engineers and drivers of large trucks on the site.

  • Medical insurance

No one knows when he or she will get sick next, which is the main reason why every person needs medical insurance. An insurance cover ensures and assures you that you will get the best treatment in any hospital for specific ailments to the tune of a certain amount depending on the premium you choose to pay.