Types of personal insurance
Expenses incurred for private medical treatment are covered by the health insurance. In countries where health programs of the government pay for such costs as is the case in the UK where the National Health Service bears the cost of medical treatment, health insurance is not applicable. The advantage of health insurance is one can avail of the best treatment from medical centers with better facilities and get it quick. Dental costs for individuals are also covered by dental insurance akin to medical insurance. It forms part of the health insurance benefit packages provided by the employer as is in practice in the USA. Since many countries undertake state funding of the medical costs for their citizens, health insurance may not be needed.
An insurance policy holder may during the term of the policy become incapacitated due to illness or injury that prevents him to lead a normal life and earn for survival of the person and his or her family. Help is provided in such event by disability insurance. The policyholder is provided with financial support for paying off credit card and mortgage liabilities. If the person becomes permanently incapacitated due to the illness or accident and is thus unable to perform any gainful employment, the total permanent disability insurance provides him or her with financial benefits. It often comes as an option with usual life insurance.
Other Personal Insurances
Other personal insurances include the homeowner’s insurance prevalent in the USA whereby the property or home of the insured along with the belongings or contents of the home are insured against damage by the perils covered in the insurance policy. Life insurance provides the deceased's family (or legal heirs) with a certain amount of monetary compensation. Auto insurance covers the risk of theft or damage of the car as also the liability for claims against damage caused by the car in an accident.