There are several kinds of insurance products found in the market these days. Before purchasing any, it is important to know what each type is for.

Health Insurance

Considered as one of the most important types of insurance to have, health insurance covers the cost of medical treatments should one get sick. This type of insurance is typically provided by the employer as part of the benefits package.

Auto Insurance

This is one of the most popular types of insurance since most states make it a requirement to have basic auto insurance. Auto insurance protects the policy owner against financial loss should there be an accident involving his car. The coverage can include property coverage, for the cost of repair to the car, liability coverage, for bodily injury or property damage caused by the car, or medical coverage, covering the cost of treatment for injuries.

Homeowners’ Insurance

Homeowners’ insurance provides compensation for any financial loss resulting from damage to the policy owner’s house. This is usually mandatory for people with mortgages. Some types of homeowners’ insurance contain exclusions for certain risks such as flood so make sure you review your policy so you can get additional coverage for any exclusions that you may deem important.

Renter’s Insurance

This is an insurance product for people who are renting. It covers them against property loss due to incidents such as a break-in or a fire.

Landlord Insurance

Landlord insurance is for commercial or residential properties that are being rented out. It covers the property owner against any financial loss due to damages to the building, and even to any belongings of the landlord that are inside the subject property.

Business Insurance

Business insurance covers damage to the business property, as well as property and bodily damage to third parties. The business interruption insurance also covers the business from loss of income due to interruption in normal business operations due to a covered risk.

Life Insurance

One of the more popular types of insurance, the traditional life insurance provides financial benefits to the designated beneficiary upon the death of the insured. However, there are certain types of life insurance that provide living benefits. An endowment policy provides a lump sum amount after a specific number of years even if the insured is still living. An annuity provides a stream of payments over a specified time frame. Life insurance has become a tool utilized by many for wealth accumulation or even wealth transfer.

Disability Insurance

This insurance policy gives the policy owner monthly financial support when he becomes disabled. Coverage normally lasts for a period of up to six months for short-term disability insurance.

Unemployment Insurance

This gives workers unemployment insurance benefits if they lose their jobs through no fault of their own.

Supplemental Insurance

Supplemental insurance is an insurance plan that pays for out-of-pocket expenses that regular insurance does not cover. This is purchased as a supplement to an existing insurance coverage.

Workers Compensation Insurance

This insurance provides an employee with income replacement as well as medical benefits should he be injured while performing his job. These benefits are provided in exchange for the worker’s relinquishment of his right to sue the employer.

Travel Insurance

Travel insurance covers losses such as medical expenses and lost baggage that are sustained while traveling. It can also contain reimbursements for events such as delayed flights or cancelled trips.

Mortgage Insurance

The mortgage insurance covers the lender from financial losses brought about by the default of a borrower on a mortgage loan.