In the United States of America, the regulation of insurance is in under the control of states and not on Federal Authorities. Thus, every state has an insurance department that oversees it’s insurance business, create policy standards, make insurance laws and regulate the industry in its entirety. In this article, we shall be taking you through the types of insurance in the United States. And we shall consequently examine the most common types of insurance in the United States which are life, property and liability insurance plans.
LIFE INSURANCE
The meaning of life insurance can be wide depending on the context of usage. Sometimes, it could mean those insurance policies that have one thing or the other to do with the human life such as health insurance policies. And sometimes, it could mean those policies that provide for the dependents of the policyholder upon death otherwise known as final life insurance plan or funeral insurance etc.
Life insurance provides for the policyholder’s family or other dependents upon death. There is the term life insurance and the whole life insurance. While term life insurance provides life insurance for a defined term of years, whole life operates throughout the policyholder’s life time and only pays out indemnity upon death to the beneficiaries.
Health Insurance as a type of life insurance in the United States
The Health insurance policy is an insurance plan that covers the cost of medical bills such as sickness and eventual hospitalization, doctor’s visits and consultations, and even prescription medicines.
PROPERTY INSURANCE
This is the type of insurance policy in the United States that provides insurance coverage to the owners of properties and other dwelling houses and even to third parties. For instance, the home owner’s insurance policy provides insurance for damages or losses to the home as a result of fire, theft, and other perils including natural disasters. However, it is worthy of note that no property insurance policy usually provide insurance coverage for all perils and risks. Therefore, it all depends on the circumstances of any particular case and the probable insurance needs of the home in question. Thus, it behooves on the home owner to make assessment of the likely risks facing his home and decide on the applicable perils to insure the property against.
AUTOMOBILE INSURANCE type of insurance in United States
This is the most common type of insurance in the United States. This type of insurance policy and particularly third party Automobile policies are compulsory in all states in the United States. Generally, a typical automobile insurance policy covers liability for bodily injury, property damage, medical bills, damage to or loss of the car itself, and legal liability costs in case of a lawsuit.
LIABILITY INSURANCE
This is the type of insurance policy in the United States that provides insurance coverage to the policyholder against damage or injuries to third parties. This type of policy is very important In the light of the litigious society we are in. These days, a person can be sued for just the smallest injury. The liability policy covers many types of these risks.
Similarly, professionals such as lawyers, doctors and accountants also buy this liability insurance to protect them against claims arising from injuries to patients or clients owing to their negligence.
Apart from the above identified liabilities, so many others are still available such as landlords, and tenants, manufacturers, contractors, companies in products manufacturing etc.
Workers’ Compensation liability insurance
This is the type of insurance policy that is common with almost every Business owner in United States. In the US, every state must provide insurance against injury to its workers. The same requirement applies to small businesses who usually purchase workers’ compensation insurance policies through commercial insurers, trade associations, or from state funds.
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Thank you so much