Insurance is an important part of every person's life, since it provides protection at times of difficulty or loss, such as death, disease or disability due to accidents or poor health. Insurance helps pay for the high costs related to these events, and it also gives people a feeling of relief from the knowledge that they will be protected if any of these events occur.
Possibly the most common and important type of insurance is health insurance. Everyone needs some kind of health insurance to pay for expensive medical care. This becomes even more critical for those who have to provide for a family. Individuals get health insurance through their employers, through the government or by purchasing it themselves. Most health insurance policies cover basic treatments and doctor visits, while more specialized treatments depend upon the policy and company.
Employer-sponsored insurance usually encompasses specific types of coverage and costs a specific amount that you must pay every month through paycheck deductions. Government insurance is usually for those with low income who cannot afford a health insurance policy on their own or do not have coverage through their job. Private insurance policies are those you choose on your own. When you buy your own health insurance, you can decide on the company and the types of coverage you are willing to pay for.
Life insurance creates an immediate estate that will go to your beneficiary should you die while you are under coverage. Life insurance is usually offered by private companies, and once you and the company sign a contract, you are both bound to its conditions. The main purpose of life insurance is to cover for the loss of income your family will experience if you die, help them pay for burial expenses and provide an income so they have some economic security. Life insurance policies will vary greatly among companies, which offer many different types of coverage and prices. Policyholders need to choose the options that fit their needs best.
U.S. drivers are required to purchase auto insurance if they have a vehicle and a driver's license. The policy will cover your car or other personal transportation, such as a motorcycle. Auto insurance helps you pay for medical costs for yourself and others due to an accident involving your vehicle, the costs of your vehicle's repair and any costs you might have from liability involving the other driver or vehicle. These basic coverages will usually be the same in each policy, but additional coverages can vary from policy to policy and company to company.