There are basically four main types of insurance. These have been explained and defined as follows;


  • Life Insurance
This is a type of insurance where the life of ownself or some of the relatives is insured against some recurring payment to the insurance company on a monthly or yearly basis. When the person whose life has been insured, a lumpsum amount is paid to the heir of the deceased by the insurance company.
  • Health Insurance
This is a type of insurance where a person is insured against a disease(s). The person who has got the insured gets a sum of money when he becomes ill or sick.
  • Disability insurance
A type of insurance when a person gets insured after getting affected with disability. Meaning that when a person becomes disabled, he gets a handsome amount of lump sum money from the insurance company.
  • Auto Insurance
Car insurance is a type of insurance where a person pays some fixed installment to the insurance company while getting his/her car insured. The company pays this person money whenever this person's car is stolen or damaged in an accident.