Type of Insurance | Functions | Example of Company | Coverage Characteristics | Auto | Auto insurance covers losses and injuries that may happen to you and your property, as well as, those that you may inflict on others. In some insurance claims it also covers you in instances of uninsured drivers depending on which coverage you buy/carry. | State Farm, Progressive, AAA, Nationwide, Esurance, All State, Geico, Liberty Mutual, and countless others. | Auto insurance covers property damage as well as injury.Injury Part A- This part ensures that you are not liable for legal fees, costs for court, or defense. It also cover’s injuries and damages that may have been caused in the car of a car accident. Part B-This part pays for medical expenses needed for all parties involved.Part C-This covers you against drivers that don’t carry insurance. (Some states require part C. Also, they regulate who pays for injuries, but it is almost always the driver at fault.)Property DamagePart D- This part is optional. The two parts are collision coverage and comprehensive physical damage coverage. | Home | Home owner’s insurance covers: any damages to the building itself from nature, personal property on the premises or off in case of theft, or from yourself being liable for damages to other’s property. | State Farm, Liberty Mutual, Nationwide, All State, Geico, Farmer’s, American Family, and countless others | 6 types of home owner policies exist. They are listed below.HO1- this form is called Basic form and covers against natural disasters, riots, explosion, smoke, theft, volcanoes, broken glass, aircraft and vehicles, and vandalism.HO2- this form is called Broad Form and covers HO1, in addition to: pipe bursts, electrical damage, water/steam, falling objects, and weight caused from snow/ice.HO3- this form is called All Risk form and covers all previously listed hazards in addition to: war, nuclear accidents, flood, and earth quake damage.HO4- this form is called Renter’s Contents. It covers the hazards listed in HO2, but it only applies to the contents of the home, not the building. The building itself is covered by the landlord’s insurance.HO6- this form is called Condominium. It also covers contents like that of HO4, only instead of the landlord covering the building, it’s covered by the Condominium Association.HO8- The last form is called Older Home. It covers restoration costs usually pertaining to historic homes.**All of the above forms have medical and liability coverage to residents and guests. | Health | A health insurance policy is a contract between the insurance company and an individual. The primary function of health insurance is to pay those covered expenses, as outlined in the policy, incurred as a result of an accident or illness. Hospitalization expenses and the medical care rendered by a physician or other health care professional. | Kaiser Permanente, Health Comp,Blue Cross, Aetna | $5-50 Copayment HMO plans, $30-$1,000 Deductible plans, $35 POS plans, $0-2,000 HAS Plans$30-$1,500 HRA PlansPPO plans | Disability | Out of work due to a non-industrial injury, illness, or pregnancy related condition. Disability Insurance (DI) provides partial wage replacement to eligible workers who are unable to work because of a disability. | The Disability Insurance Branch of the California Employment Development Department (EDD) administers three disability insurance plans | * State Plan. The majority of employees in California are covered by this plan, and most of the information provided on the Disability Insurance portion of this site pertains to the State Plan. * Voluntary Plan. This is a private plan that employers and employee groups may apply to EDD for approval of a Voluntary Plan if the majority of employees and the employer agree to do so. If covered by a Voluntary Plan, the provisions of this site may not apply to you. Obtain information about your coverage and file a voluntary plan claim through your employer. * Elective Coverage. Employers and self–employed persons, including general partners, individuals in family employment not subject to the California Unemployment Insurance Code may elect coverage. For additional information on Elective Coverage or to apply for Elective Coverage. | Life | Life insurance is bought to ensure that after the buyer passes on the family or survivors are looked after. This includes things like providing an income you no longer can, provide money to keep the household running, pass on additional money to heirs, and cover any losses that may occur to your buisness. | Metlife, Prudential, AIG, Colonial Penn, State Farm, All State, and many others. | Term Life Insurance- this type of covers pertains to a contracted amount of time. The holder pays yearly or monthly premiums. If the holder passes during the contract, the heirs receive the policy at face value, however; if not, the contract is up. Permanent Life Insurance- there are four types of permanent life insurance. This type of life insurance has no contracted time and needs no renewal throughout the course of your life. The other difference with permanent life insurance is the cash value aspect. There are different types of permanent life insurance:Whole life insurance- this covers the length of the holder’s whole life. This is considered ordinary life insurance.-Limited payment life insurance- this is when payments are paid only for a specific time period.-Single premium whole life insurance- this form is used for a single premium payment. Beneficiaries receive a payment no matter when the holder dies at face value.Universal Life Insurance- (another form of permanent life insurance) this form has all the aspects of whole life insurance with added benefits. In this type, if there is extra return in funds, the policy holder can: not make a payment, have a reduced payment, or take funds from the policy completely.Current Assumption Whole Life- this form is like universal but is based a lot on the economy. If the economy turns for the worst premiums could be increased where as if the economy is good premiums could decrease.Variable Life Insurance- this form is one of the most popular. It gives the policy holder the most control on where they want their funds invested and at what risk. The other added benefit to this form is that if the holder receives a higher return, beneficiaries would receive the amount at face value, in addition to the extra return. |
