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4 Types of Insurance: Which One Do You Need? - go!
Career & Money

4 Types of Insurance: Which One Do You Need?

Before deciding which one to avail of, consider your needs and lifestyle

Do you need insurance? Only you can answer that question, especially considering that there are different types of insurance to address different needs. 

But before anything, what is insurance? Insurance is a form of protection from financial loss, a safety net you can fall back on in times of emergency. Your insurance can provide payment for covered risks when they occur. 

How Does Insurance Work?

Here’s how it works: you pay a monthly or yearly fee to the insurance company to insure your life, health or vehicle for a certain period. Your insurance then compensates for the monetary damages in case of any harm to the covered person or object. 

Why is Insurance Important?

Essentially, having insurance provides financial certainty if an unforeseen event happens. For instance, if your car is accidentally lost or destroyed, your policy can cover the repair or replacement costs. If you get sick, your health plan can shoulder your medical bills.

What are the Different Types of Insurance?

There are different kinds of insurance, and each one covers a particular risk. When deciding which one to avail of, it is important to consider your needs, the nature of assistance that each policy offers and your ability to pay the premium. 

Here are four of the common types of insurance, their respective coverage and the benefits they provide.

1. Health Insurance

This type of coverage pays for your medical bills and other healthcare costs, such as medicines and, sometimes, dental expenses. While there are different types of health insurance, all of these can be used to reimburse the payments you incurred due to an illness or injury. 

Depending on your chosen plan, health insurance can cover hospital bills, clinic visits and diagnostic tests. One example of health insurance is the GInsure Singlife Cash for Dengue Costs.

Yes, getting insured is now one of the many things you can do with GCash. GInsure Singlife can cover your testing, confinement and medical expenses due to dengue. You can purchase this for a minimal yearly amount of Php300. With the plan, you can avail of cash assistance and medical coverage of up to Php140,500. 

2. Loss of Income Insurance

Loss of Income insurance can help pay for your expenses in case of unseen perils such as an accident or death that affects your capacity to work and earn. Singlife Cash for Income Loss on Accidents is an example of this. 

Singlife Cash for Income Loss on Accidents enables you to continue supporting your family in case of disability or death caused by a covered accident. You can receive cash to replace your income while you recuperate. Actual premiums may vary based on information, such as take-home income, mode of transportation and occupation type. 

The Gold Package, in particular, gives you a monthly cash benefit equal to the full amount of your take-home income for 36 months. On top of that, you get a bonus on the 36th month, which is worth twice your monthly cash benefit.

3. Life Insurance

Life insurance guarantees a sum of money in case of death during a specified period. Here, you pay premiums in exchange for the coverage, which will be paid to your beneficiaries.

There are different types of life insurance. There’s term insurance, which provides higher coverage for a lower premium as compared to other life insurance policies. However, no money is paid to you as the policyholder if you survive the term.

Meanwhile, for endowment, you receive a lump sum after the policy tenure ends. For this, the premium is higher than that of term insurance. 

4. Auto Insurance

Auto or car insurance protects you from financial loss in case of an accident, theft or collision damage involving your car. If you’re a car owner, this can be heaven-sent should you find yourself in an accident.

The general types of car insurance are liability, collision and comprehensive insurance. Liability insurance can help cover costs for damage and injuries to others, for which you become legally responsible, resulting from a covered accident. Meanwhile, collision insurance covers repair or replacement expenses you incurred due to an accident involving another vehicle.

Lastly, comprehensive insurance provides coverage for the damage caused to your car due to incidents besides collisions, such as vandalism and certain weather events.

Secure Your Future 

Nobody wants to get sick or hurt, but you’ll never know when the chips might be down. With an insurance plan, you and your family can be protected from financial loss due to any unforeseen circumstances. 

GCash Insurance offers medical coverage plans which you can purchase with minimal premiums. It provides affordable health insurance that you can avail of for yourself or your loved ones using the GCash app

Art Matthew Fetalver

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