Insurance is a way of protection against financial loss; the coverage provided depends on the type of insurance policy that one buys. Generally speaking, it is a kind of risk management, mainly employed to mitigate the risk of an unpredictable or contingent future loss. Financial loss can be either actual or possible. If there is any loss, either in terms of cash or results thereof, the insured will be paid the amount equivalent to the face value of the policy, less the premiums. There are many types of insurance policies available and a comprehensive list can be very long and confusing. Wilkinson Insurance is an excellent resource for this.
Health Insurance provides protection against health related costs such as doctor visits, hospital bills and treatment, drugs and medicines, etc. General Insurance is used to provide protection against loss from some specified events such as death, disablement, divorce, termination of employment, destruction of property, injury, etc. These events are deemed unplanned and are the consequence of acts or failures, which are beyond the control of the insured. Such events as natural calamities, terrorism, and accidents are examples of unplanned events and are covered by General Insurance.
Life Insurance is required by law for all legal requirements of life. The policyholder (the person insured) is the person who has been insured and who becomes the beneficiary. In certain cases, the beneficiary may be someone other than the insured. Usually, however, the beneficiaries are the family members or friends of the insured. Personal Property Insurance is used to cover items that are owned individually and not traded assets.