What does it mean to have insurance? Choose two types of insurance (auto, home, health, disability, or life insurance) and identify one characteristic of each

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  • What does insurance mean

To have insurance means to have some form of security if things should ever go wrong in day to day life. Paid at either a monthly rate, or in a one off payment, insurance will cover you or your belongings for a certain amount of time, meaning that you will not be left without financial backing should your property be damaged or stolen, or if you yourself should encounter some form of physical impairment.

  • Different types of insurance and their characteristics

Home insurance can be taken out so that a person will be covered should any damage occur to their property, such as flooding or damp.

Disability insurance is used by people who have dangerous or laborious jobs. It means that if they should have an injury that prevents them from working, their insurance company will help them with finance issues, allowing them to carry on living without needing to sell their assets.

Automobile insurance is a form of insurance that all car owners must have; it means that, should you have an accident, you will be able to pay for the other person's car or property to be fixed if you need to. It also covers you for any damage caused by others, or if it is stolen.

Life insurance is taken out by people who wish to ensure that there is some money left behind for their family upon their death, which may be used to help them pay their funeral. Some life insurance companies will also pay out should you be diagnosed with a certain illness, as this will help for you to pay for treatment.

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