Different Classes of Insurance

Insurance companies have many products and services to offer to new and existing clients. The class or type of insurance you can choose from depends on your personal and family situation, and on the types of coverage you might be interested in. It also depends on how much you are willing to pay for insurance coverage, and how much you value the service that insurance company provides. You can have just one class of insurance or several classes that cover different needs.

Life insurance is a class of insurance that pays money to your beneficiary should you die. This money helps to pay for burial expenses, to pay estate taxes, and to give your family a substitute for the income that you were providing them so they are able to re-establish their financial situation. Life insurance can come alone, just with the coverage in the case of death, or it can have a savings element attached to it. If you survive after the time of coverage is over, most companies also pay you the amount you were insured for.

Another class of insurance is health insurance. This is a very important type of insurance because it helps you to pay for medical expenses that you and your family might suddenly incur.

There are three different types of health insurance. The first is called "Fee for Service," and it is the most expensive. It covers almost any doctor and anything for which you might need a doctor or a treatment. If you have Preferred Provider Options, known as PPO, your insurer gives you a list of providers to choose from, and it covers many diseases and treatments you might need. A Health Maintenance Organization, HMO, is very cheap, but your insurer assigns specific doctors to you, and the types of treatment you can receive are very strict.

Auto insurance is a class of insurance that covers risks related to your vehicle. Most states have laws requiring automobile insurance. This insurance gives you coverage for damage caused by an accident to you, to your car and to any person that was in the car with you. Auto insurance must protect you against liability, which means that, if you are at fault for an automobile accident, your insurance will pay for the damages done.

Home insurance protects your house against natural or human damage, such as fires, earthquakes, flood or theft. In any of these cases, the insurance company will pay you back for the damage your house receives. Some policies include rebuilding and resale costs and protection to other properties, such as the garage. Some policies stipulate a specific percentage of the damages that your insurer will pay for.

Some companies offer insurance that protects you against the costs and loss of income that come with disability. You pay premiums for a specific amount of coverage, and if you do receive an injury that results in disability, your insurer will pay out that much money. This amount can come in the form of monthly allowances or as a one-time payment, depending on your policy.