Insurance Explained: What Are The Different Types of Insurance?

Did you know that in 2018, accidents and health insurance providers wrote over $1 trillion in written premiums? This astronomical figure indicates the size of the insurance industry in the USA. 

You do doubt use insurance companies regularly. However, did you know how many types of insurance coverage there are?

Many people don’t. When we see articles entitled “Insurance information” or “Insurance explained”, it may not grab our interest.

However, investigating different forms of insurance can lead to better coverage and care for you and your business. How? Why not take a minute to see what types of insurance are available and whether they could benefit you.

1. Captive Insurance

Captive insurance is a type of self-insurance often employed by mid-size businesses. In captive insurance, a company will create its own small insurance company that will write premiums for the large parent company and its subsidiaries. 

By using captive insurance, a company can avoid volatile global insurance pricing and control the terms of the policy. They can also insert terms into the premiums that will protect the company in the case of rare events known as black swan events.

2. Life Insurance

Life insurance will protect your family and others in the event that you pass away. A bereavement is already a traumatic event for a family. However, a family may then face the high costs of medical treatment, funeral costs, and loss of earnings.

Life insurance will provide needed financial support that will allow the family to cope during this difficult time. 

3. Health Insurance

Medical treatment is generally high, very high. In many cases, individuals who need medical treatment, but do not have insurance, will need years to repay the cost or face bankruptcy.

Health insurance will pay for the whole or part of these costs. Even the cheapest stay in the hospital will cost over $1,000 per day. Any health insurance, however minimal, that can reduce this cost is worthwhile.

4. Long-Term Disability Coverage

While health insurance will meet part or all of your medical bills, it does not generally provide support for your life outside of the hospital. Many people with good health insurance find themselves with financial difficulties because they are unable to work for weeks or months. 

Long-term disability coverage will help you should you find yourself unable to work and meet your day to day needs. It should be purchased in addition to health insurance for the ultimate peace of mind. 

All Kinds of Insurance Explained and Much More

While almost everyone needs insurance of some type, many do not understand the range of insurance opportunities on offer and how they can benefit from them. Insurance explained simply is beneficial for everyone. 

If you are interested in learning more about business and lifestyle developments then we are here to help. We share our experience in the business world with our readership. Why not check out our blog today to see how we can help you.