Asking how many types of insurance are there is like asking how many types of cars are on the market. Trick question? Maybe a little. In this article we are not going to make a list of all the products that you can find in the insurance market , but we are going to see the different categories of insurance that exist. Now it’s a bit easier. If you want to go back to the example of cars, it would be like explaining that there are gasoline, diesel, electric and hybrid cars.
Types of insurance
The different types of insurance can be grouped into three different categories: personal or personal insurance, damage or property insurance and service provision insurance.
In personal insurance , the insured object is the person. Therefore, personal insurance protects the individual against the occurrence of an event that directly affects him.
When we talk about personal insurance or personal insurance, we refer to life insurance, personal accident insurance, health or illness insurance, dependency insurance and pension plans.
The fundamental characteristic of life insurance is that the payment of the amount agreed in the contract. This amount depends on the death or survival of the insured.
In this sense, life insurance can be:
- Death insurance , also called risk insurance: If the insured dies before the end of the contract, the beneficiaries receive the payment of the insurance policy according to the agreed capital or income.
- Survival insurance , also called savings insurance: If the insured lives at the end of the contract, the insurance pays the beneficiaries the contracted capital or income.
- Mixed insurance : They combine the two previous ones.
» PERSONAL ACCIDENT INSURANCE
Personal accident insurance guarantees the provision of compensation in the event of accidents that cause the death or disability of the insured.
» HEALTH INSURANCE OR ILLNESS INSURANCE
Health or illness insurance provides health and assistance coverage , and in some cases also of an economic nature, in illness or ailments.
There are three types of health insurance:
- Health care : The insured receives care coverage from the doctors and clinics included in the agreed medical chart.
- Reimbursement of medical expenses : The insured can go to any doctor or hospital, anywhere in the world. The insurance will pay the bills previously paid by the insured.
- Compensation : The insured receives a set amount in the event of certain health-related situations.
» PENSION PLANS
Pension plans are not insurance, but savings products . But they are included in this category because they guarantee certain financial benefits upon reaching retirement age. In this sense, the benefits are the economic right of the beneficiaries of the pension plans as a result of the occurrence of a contingency covered by them.
Damage insurance or property insurance
Damage insurance or property insurance are those whose main purpose is to repair the loss that an insured may suffer in their assets after an accident.
This is the case of vehicle insurance, agricultural insurance, fire insurance, pecuniary loss insurance, theft insurance, credit and surety insurance, civil liability insurance, transport insurance, engineering insurance and multi-risk insurance in general.
These insurances can belong to some of the following groups, or to both:
» THINGS INSURANCE
The purpose of property insurance is to compensate the insured for material losses directly suffered in an asset of their heritage.
» CIVIL LIABILITY INSURANCE
The purpose of liability insurance is to guarantee the insured against civil liability that may be incurred before third parties for acts for which he is responsible in order to protect his assets.
Service provision insurance
Insurance for the provision of services are those in which the insurer undertakes to provide a service to the insured and, in cases covered by the policy, also to provide financial compensation. This is the case of legal defense insurance, travel assistance insurance and death insurance.