What type of insurance do I need? The answer is “it depends”. The type of insurance you need depends on what you want to protect.
The first thing you should be clear about is that insurance establishes a commitment between an insurance company and a person, so that if they suffer any damage, they will be compensated.
There are different types of insurance , from those that protect your life to a trip. Furthermore, it is said that there are as many insurances as there are risks. To choose it, it depends on your concerns or needs.
If you are concerned about being unable to work or that your assets are affected by an accident, this financial instrument may be your solution.
As we saw on the blog “ key elements of an insurance policy ”, material and immaterial things can be insured. It is enough that they are taxable in money, that they may be at risk in a minute and that they are not of illegal origin.
But what types of insurance are there? Insurance can be classified into 3 types:
In this case the protected object is the person. The insurance company protects the beneficiary against any event that directly affects him, for example, death, accidents or health alterations.
Among them are:
-Life insurance: It can be of death, survival (or saving) and mixed. In the first case, compensation is paid to the beneficiaries in the event of death. In the second, compensation is paid if the contract is fulfilled and the person is alive.
-Health insurance (or illness): It offers health, healthcare or economic coverage, in the event of suffering any illness or disease. For example, reimburse medical expenses or give an amount of money in case of certain illnesses.
-From personal accidents: Compensation to the insured in case of accidents that cause death or disability.
-Dependence: The person is compensated in the event that she cannot use her own means and requires a consideration.
2 – Of damages or patrimonial
They seek to protect the assets of a person against an accident, accident or catastrophe.
Among them are auto, engineering, multi-risk, credit and surety insurance, various pecuniary losses, theft, transportation, earthquake, fire and civil liability .
The latter refers to damage (patrimonial, material or bodily) that the insured may have caused to third parties. That is, it covers the payment of monetary compensation when the person is civilly responsible for a claim. Even – if it is agreed in the policy – it can cover the legal costs or bonds that are required of the insured.
3 – Provision of services
Service provision insurance commits the insurance company to cover the expenses that the beneficiary incurs when using any service.
If you had to incur unforeseen expenses due to a legal problem or the death of a family member, this type of insurance is the solution so that you do not go through the same thing.
Among them are travel assistance, death and legal defense insurance.
However, there are different categories for each of these insurances. Everything will depend on what is stipulated in the insurance policy and its clauses. Here it will be determined how much it will cover, before what event, in what period, etc.
As we tell you, today almost most things can be insured, from your assets to services. The various insurance companies offer increasingly personalized alternatives. The most important thing is that the insurance adjusts to your needs and not the other way around.
Now that you know how to choose insurance, be sure to read the policy carefully, so that you don’t have surprises when using your insurance.