ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Insurance :Learn What is Insurance, Insurance Types

Updated on April 11, 2015
Insurance: Protection from Risk
Insurance: Protection from Risk

What is Insurance?

What is Insurance ? Insurance is basically a transfer of risk from one entity to another. This usually happens in exchange of money, it is called payment. Insurance is a type of risk management. It was used primarily to hedge in which risk is uncertain and contingent.

Insurance involves transferring risk from customer and paying the insurance amount to the insurer. If a person wants to purchase a policy and covered under insurance, then he or she needs to purchase the policy according to the current situation. The insurer has to pay certain amount periodically to be covered.

Insurance is considered to have brief history. In earlier times, insurance was present in some different form may be for risk of livestock or agricultural products. It eventually turns into modern insurance industry. Eventually Insurance industry grown up and nowadays all assets you can think are in need of insurance.

Are You Covered ?


What is Insurance ? Insurance terminology

As we know, Insurance is a kind of protection from some uncertain risk. One can get insurance depending upon the risk assessment and other terms.

Insurance companies are the company who provides risk assessment and protection against certain kinds of risk in terms of receiving payment.

Insurance companies are also known as an insurer. Insurer sells insurance to the insured or policyholder. The policyholder is usually individual or companies.

The insurers charge insured certain amount of money depending upon the insurance type, policy type, risk associated and certain other factors. This amount of money called premium. Insured pay the premium amount to the insurer to keep insurance coverage on.

Upon buying the insurance, insured receive a contract, which is called Policy. The policy holds all the terms and conditions for the particular insurance.

Most insurances are indemnity contracts. Indemnity contracts are considered to those insurances in which the loss can be measured in some amount of money.

Insurance Types

There are many types of insurance available but we are going to consider some of the important types here.

1) Health Insurance: Health insurance provides the protection against the health risk and other medical expenses. It covers different types of loss from accident, disability benefits, accidental expenses and other medical expenses. Dental and eye insurance are also a part of Health insurance but it is purchased separately.

2) Life Insurance: Life insurance is also known as Life assurance. In life insurance, the insurer promise insured that upon the death of the insured person, the insurer will pay some defined amount of money to the beneficiary. There are many different types in life insurance such as whole life, death, Loan for Terminally Ill (LTI), universal life, variable life etc.

3) Auto Insurance: If you own a vehicle, then auto insurance is mandatory for you. There are two types of auto insurance full coverage and Liability coverage (Third party insurance).It provides insurance for all the vehicles including cars, trucks, motorcycles and RVs. The amount of premium depends on vehicle condition and terms of insurance. Auto insurance provides coverage for auto damage in case of an auto accident. It also provides expense for auto repair.

4) Property Insurance: Property insurance provides insurance against property risk, theft, burglary, fire, some weather damage etc. It comes in different forms such as it can be bought for property risk assurance.

5) Business Insurance: Business insurance is basically for small and large organizations.

There are some other sub types of insurance are there as well such as liability insurance, Gap Insurance, Burial Insurance, closed community self-insurance, business interruption insurance, collateral protection insurance (CPI), defense base act (DBA) insurance, expatriate insurance, kidnap and ransom insurance, livestock insurance, pet insurance, title insurance, travel insurance, tuition insurance, interest rate insurance and divorce insurance.

15 Most Crazy Celebrity Insurance Policies

  1. Heidi Klum's Legs: $2.2 million
  2. Thailand Riot Insurance: $10,000 Per Tourist
  3. Aquafresh White Strips: $10,000,000 policy on American Ferrera's teeth
  4. Dolly Parton's Breasts? A whopping $300,000 a boob
  5. Tom Jones' Chest Hair: $7,000,000
  6. Paul Hucker Insures Himself For $1.5 Million Against Abduction, Impregnation And Consumption By Aliens
  7. Lloyd's Offers Hole-In-One Insurance For Golfers: $50,000
  8. Jennifer Lopez has a $27 million insurance policy on her butt
  9. $151 million for David Beckham against a career-threatening injury
  10. Taco Bell took out insurance in case a falling piece of the MIR Space Station hit a promotional bulls eye In The Ocean. If it worked, everyone in America would get a free taco.
  11. British male stripper named Frankie Jakeman insured his penis for $1.6 million
  12. British food critic Egon Ronay keeps his taste buds safe for $400,000.
  13. Rod Stewarts' voice? $6 million in insurance.
  14. The Rolling Stones' Keith Richards insured his middle finger to the tune of $1.6 million
  15. David Lee Roth's semen was insured for $1 million back in the 1980s.

Insurance types


Insurance Companies Poll

What is the best Insurance Company as per your experience?

See results

Insurance Companies

Insurance companies can be divided into main two groups: Life insurance companies and non-life insurance companies. Life insurance companies mostly sell life insurance, annuities and pension policies. Non-life insurance companies usually are for everything else then life insurance products. Insurance companies provides insurance in exchange of certain amount of insurance payments. Most insurance companies also have their banking branch by which they invest their collected amounts.

There are many insurance companies available for an individual as well for businesses. There are many different kinds of insurance as we discussed and companies provide those insurances. Some insurance companies are specialist in certain kind of insurance. State Farm, Allstate, Geico, Blue Cross Blue Shield, Humana, United One, Progressive, Liberty Mutual, AIG, Farmers insurance, Cigna, Aetna, united health care, assurance, Met Life, Uni care, Anthem, Travelers and AAA are some of the top insurance companies.

In Summary...

Insurance it is not a luxury but it is a shared responsibility where an insured person pays insurance installment to protect their assets. Some countries provide health insurance for their citizens like Canada while some other countries wants their citizens to buy insurance such as US. Insurance usually consider provide safety for your assets. At the end,it is good to stay insured and feel protected but it is again debatable. I will try to put together my thought about this debate in a separate article. Hope this article provides you some basic information about insurance.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)