Discuss the types of insurance policies that affect individual consumers. Why are these policies important?What do they cover? Who should carry this type of insurance?

Expert Answers
Lorraine Caplan eNotes educator| Certified Educator

There are a few other kinds of insurance available to people, disability insurance and liability insurance. Not as many people want or need these particular kinds of insurance, but they can be quite important.

Many people do not realize that if they are unable to work, they cannot always collect worker's compensation or disability income through Social Security. The only people who are entitled to worker's compensation are those injured on the job. The requirements for collecting Social Security disability payments are quite strict, and few people qualify.  Therefore, unless an employer provides short and long-term disability coverage to its employees, a private disability insurance policy can be quite a good thing to have.

Liability insurance is important for people who are doctors, lawyers, therapists, and contractors. This insurance covers what is called "malpractice," which means that the person covered has made done something wrong in the delivery of a service and is liable for the error.  Other kinds of liability insurance are often covered under homeowners' policies, so that if someone slips and falls on your sidewalk, the liability is covered. 

pohnpei397 eNotes educator| Certified Educator

There are many kinds of insurance policies that affect individual consumers.  They are all important so that you or your family are protected in case of some kind of incident that would otherwise cost you a great deal of money.

Among the most obviously important kinds of insurance are:

  • Medical and dental insurance -- just about everyone needs these because medical expenses are so high and can happen unexpectedly.
  • Homeowners or renters insurance -- these will help you recover from theft or from something like your house burning down.  The more things you own, the more you need it.
  • Auto insurance.  This is required in most states.
  • Life insurance.  Necessary if your income is important to your family.
krishna-agrawala | Student

Insurance is a commercial system in which a policyholder for a payment of small premium, is entitled to receive a substantially higher compensation for financial or any other loss. The variety of insurance policies runs in to hundreds. However these can be classified in some broad groups as follows.

  • Life insurance: life insurance covers the risk of untimely death by any reason. Frequently this type of insurance also gives compensation if the person insured is permanently disabled due to disease or accident. One particular type of life insurance is against loss of life by accident during travel.
  • Health or Medical Benefit Insurance: This insurance covers the medical expenses of a person in case of medical treatment is required for treatment of disease or injuries by accident.
  • Property insurance: This covers loss of property of any kind. This kind of insurance is further classified according to type of property (house, automobiles, household goods, livestock etc.) and the reason for loss (theft, fire, accident, war, natural calamities, etc). One very common type of property insurance is for automobile, which needs special provisions to cover the driving and accident regulation.
  • Third party insurance: Third party insurance refers to the compensation that an insured person may have to pay to someone else for losses suffered by him or her - for example victim of a car accident.
herrys | Student

For an individual a common question is that what path to choose an insurance policy. There are endless options to choose from one simple step is to decide that what type of insurance you wish to look into.

Home insurance provides you various options to protect your home. Renter's insurance is a great way for a tenant to protect his property while renting.Auto insurance is required to protect a person to operate a motor vehicle. It helps you to come back to road swiftly.

Car Breakdown Cover

stevewarne | Student

Policies are a safe step to secure your life. There so many types of policy. For more visit http://lifeinsurancequotetoday.com/.