Insurance 101: Types of Insurance

Picking the right type of insurance is the one of the most important decisions you can make. Insurance mitigates risks that help avoid financial loss. The necessity of insurance cannot be undervalued as it is a critical component to long-term financial success. There are several types of insurance that provide protection to you and your family: home insurance, health insurance, auto insurance, and life insurance.

Home Insurance
As a homeowner it is your goal to protect one of your most valuable assets, your home. Homeowners insurance or home owners insurance provides the desired protection against perils to your home. The most common perils home insurance protects against are lightening, fire, theft, hail, smoke, vehicles, accidental overflow of water, falling objects, weight of ice/snow/sleet, freezing, and more. Ignoring the critical role of home insurance by someone is done at their peril.

Additionally, home insurance protects the assets within your home, as well as provides a safety net against liability by having a liability insurance component as part of the policy. Liability protection offers you financial protection in case of any injuries and property damage caused by you or your family members to others. Moreover, the policy protects against damage caused by your pets.

Health Insurance
Health insurance, healthcare insurance, or medical insurance is used to describe a type of insurance that pays for medical expenses. Most people receive health benefits from their work group health insurance plan and some derive benefits from individual policies. In each case, health insurance protects them from high or unanticipated healthcare expenses. Affordable health insurance and low cost health insurance are beneficial in many ways:

  • Medical care is expensive. By having health insurance you protect your financial resources.
  • You can avoid paying expensive medical bills and severe financial hardship; one that you may not be able to extricate yourself out of.
  • Without proper insurance coverage, the only option you may have is the emergency room which can cost 20 times more than routine care and you are liable for the entire bill.

Auto Insurance
Auto insurance or car insurance is insurance protection taken out on cars, trucks, and other vehicles. It offers protection against losses due to traffic accidents and any resultant liability. Your car insurance company covers any losses outlined in your auto policy. Auto insurance offers property, medical, and liability coverage:

  • Property coverage pays for damage and theft of your car.
  • Medical coverage offers cost of medical treatment for injuries, rehabilitation, and in some cases lost wages
  • Liability coverage pays for property damage or bodily injury caused by you.

Life Insurance
Life insurance is no longer seen as a luxury but a necessity by consumers. It provides protection for your beneficiaries, your loved ones. The insurance company agrees to pay a sum of money to the policy's beneficiaries upon the insured's death or in the event of a terminal illness. Life insurance is a foundation for successful long-term financial planning for you and your family. Here are some important reasons to get life insurance:

  • May help cover expenses such as, funeral costs, probate costs, estate administration, debts, and medical fees.
  • Creates an inheritance for your beneficiaries  
  • Make charitable contributions, donate to your favorite charity

Free Low Quotes and Trusted Online Resources can get you free low insurance quotes, as well as aligning you with an industry professional who can answer your questions. We make it simple to get a competitive affordable insurance quote.

Our free insurance quotes and trusted online insurance resources empower you to make the smartest choices when deciding on the type of the insurance policy. Start saving now; get your free low insurance quotes today! offers industry leading information, advice, and free online insurance quotes for all major insurance types:

  • Home Insurance
  • Health Insurance
  • Auto Insurance
  • Life Insurance

Looking for more information on your specific insurance type? Explore the nationwide insurance agent directory below to find an affordable insurance company or broker in your area. Start saving today!

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