Types of Insurance, Why you need Each and How to Apply Online

Types of Insurance, Why you need Each and How to Apply Online
Written by Okosun John

Today we will be covering Types of Insurance and all what you need to know.

Going out daily is risky. 

Driving your newly purchased car to a meeting a few miles away is risky. What’s this risk? You could at any point crash with another driver or even worst off get robbed of your newly purchased car.

This same scenario occurs in various sides of life. While yours could be a car, Your neighbour could be his newly purchased house or rented appointment. Even health isn’t left out.

So how do we protect all these valuable things that are necessities to our life and best of? Insurance.

What’s Insurance All About?

Imaging a friend taking a beating for you?. More like, you broke your teacher’s pen, but instead of you getting a beating, a friend steps in for you and take the 6 strokes of the hot stewed cane.

That’s exactly what insurance does for you. 

Insurance companies pay for damages when an insured property is damaged unintentionally.

So no need for you to be afraid of getting robbed of your car, or you getting into a crash because once your car is insured then you can easily drive around the neighbourhood without having fear.

Is insurance right for you?

Many states in the United States and other countries make having an insurance policy (a signed insurance agreement for a property) a compulsory license before you can buy a house or drive a car.

But even if these laws didn’t exist. The insurance policy would still be right for you.

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Having a policy that covers you can bring peace of mind not just to you but to other drivers in the street.

Hence, you must get insurance for anything you purchase to avoid losing your valuable and starting all over again.

Types of Insurance Policies

So what exactly can you purchase an insurance policy for?. A new car or house?. Let’s take a look.

General insurance policies can cover anything as long as it’s valuable to you. However, there are basic things that most insurance companies cover.

Here are the most common.

  1. Auto insurance
  2. House Insurance
  3. Health Insurance
  4. Life Insurance
  5. Business Insurance

Care for some insight? Here is what each of them means.

Auto Insurance

Purchasing a vehicle is costly hence you don’t see car owners messing with their new purchases.

Auto insurance is that investment you need to make to protect your vehicle. With an auto policy, you get to cover damages should in case your car gets involved in an accident, gets stolen etc.

There are various advantages of auto insurance which include the security and rest of mind it gives to you but the monthly policy payment could be a pain in the neck.

Home Insurance

Just like auto insurance, home insurance cover damages but this time for houses.

When a house is insured damages such as the event of natural disaster are being paid by the insurance companies.

In some scenarios, if it involves the house owner moving out of the apartment, the insurance company will make provision for accommodation during that period.

This is one of the reasons house insurance is important.

Let’s take for example people living in a disaster-prone city such as Florida. How do these people survive when there is a storm? Home insurance.

Health Insurance

Health is wealth they say!

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How do you intend to build finances without good health? This is why you need to take health issues seriously.

Many talented individuals have lost their lives as a result of not making plans for the sick days.

Irrespective of how healthy we think we are. Falling ill isn’t avoidable and the same is getting involved in an accident.

How you can quickly get the best health services without breaking the bank is what Health insurance offers you.

When your health is insured, you get the quickest response regarding treating yourself at no additional cost. Which means someone else (your insurer) foots the bill.

This is the most important need for scenarios of your not being able to save up due to a probably long term illness or sudden involvement in an auto crash.

Life Insurance

Anything that has a beginning has an end!

What happens when you lose your life through accident or anything unintentionally?

Do you have children who would be left without help and a father?

Or do you have relatives who usually would depend on your support?

Life insurance is that person that supports your beneficiaries when you are gone. It could be a chunk of money saved down to help the family move on when you are gone.

Should I opt-in for such? Yes, especially if you have children or younger ones that solely depend on you.

Business Insurance

Running a business without some proof of safety is deadly.

Many customers and investors would practically avoid running a business with you because of Business Insurance.

Yes. Because it is a guarantee to customers that even if something doesn’t go well, the policy of this company would get my investment safe.

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This is one reason companies run to get insurance.

Let’s assume for a bank that got robbed! who do you think pays for the stolen funds? Well, it’s the insurance.

This applies to all businesses.

Insurance Companies that might interest you

Do you want to get a policy for yourself?. Well, there are a lot of companies you could consider.

With the internet now being accessible everywhere and companies running to set up websites, finding the perfect insurance company becomes even way easier.

Here are some of the companies I have done little research on

  1. Geico
  2. Traveller
  3. USAA
  4. Nationwide
  5. Progressive

How to Apply for Insurance Policy

There are various ways to get a policy but it mainly depends on what the insurance company provides.

Many companies allow you to easily create quotes online on their websites and even make payments online while others sell insurance through agents that are distributed nationwide.

But whichever way you choose to purchase your insurance policy it is important to know the points below

  1. Compare policies: Visiting at least 3 insurance companies will help you know which policy is better and also cheap.
  2. Apply for discounts: Many insurance companies offer discounts such as when you purchase two or more policies from them. e.g Car and Home insurance bundling.
  3. Look out for customer reviews: Ensure you read reviews about any insurance companies you approach to.

Haven said that. When applying for an insurance policy, always try to make the best of it. Because many companies are selling the same policy coverage but at different prices.

About the author

Okosun John

A B.Eng. holding mechanical engineer with love for content creation and web development.

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