Different Types Of Insurance

Nowadays there are so many different types of insurance available that it can feel almost over whelming to the general consumer. Its seems that everything from life insurance, to critical illness insurance and even pet insurance is widely available today!

So with the seemingly endless different types of insurance cover you can have – what are the absolute essentials for peace of mind and ensuring that you have financial security should the worst case scenario occur?

Below are some of the fundamental types of insurance that you should consider;

Life Insurance

Life insurance is a type of policy whereby when the policy holder dies a lump sum is paid out. There are fundamentally two categories of life insurance – “Term Insurance” and “Whole of Life Insurance”.

Critical Illness Insurance

Critical illness insurance pays out a lump sum if you are diagnosed with a critical illness that is covered by the policy.

Home Insurance

Home insurance can be broken down into two categories;

1. Buildings Insurance

Anyone who has a mortgage must have buildings insurance – it is one of the conditions of your mortgage, without buildings insurance you will not get a mortgage. This type of insurance essentially covers the cost of repairing or rebuilding your house and it covers not just the structure of the house but also permanent fixtures such as bathrooms and kitchens and even pipes and drains.

2. Contents Insurance

Contents insurance covers your possessions, everything from furniture and flooring to electrical appliances and technical items such as computers and plasma TVs.

Vehicle Insurance

There are three different types of vehicle insurance;

  1. Third Party.
  2. Third Party, Fire and Theft.
  3. Comprehensive.

If you drive a vehicle by law you must have at least third party motor insurance. In the event of an accident third party insurance covers you for damage to another parties vehicle / property or personal injury.

Other Types of Insurance

Depending on your own personal circumstances there are other types of policy which may be just as important;

  • Private Health Insurance
  • Travel Insurance
  • Unemployment Insurance.
  • Income Protection Insurance.
  • Long Term Care Insurance.