The types of life insurance can be made on several more grounds.Life insurance coverage is a system of state and private guarantees that enable the insured person to secure his life against the risk of death, loss of working ability, disability, loss of property or family capital.Life insurance, in which the insurer agrees to pay to a designated person a stipulated sum on the death of a named human being.
1 Accident insurance, in which the insurer agrees to indemnify the insured for specified expenses or lot is resulting from an accident causing physical injury to the insured.
2 Sickness insurance, in which the insurer agrees to pay the insured certain specified sums of money if the insured is disabled because of sickness.
3 Fire and extended coverage, in which the insurer agrees to indemnify the insured for loss or damage of a building resulting from fire, windstorm, hail, lightning, explosion, riot or civil com-motion.
5) liability insurance, whereby the insurer agrees to pay on behalf of the insured an amount equal to the insured’s legal liability as a result of the death, personal injury, or property damages of a third person. Such liability insurance may result from the owner-hip or operation of a particular automobile or the ownership or use of some other form of property.
6) Workers’ compensation insurance, which insures employers for their liability to pay losses sustained by employees injured in the course of their employment.
7) No-fault auto insurance, which pays economic losses sustained by the insured, the occupants of insured’s car, or pedestrians as a result of accident of the insured’s car without regard to whose fault caused the accident. No-fault auto insurance has been the subject of widespread controversy. Over twenty states have adopted no-fault plans.
8) Prepaid legal insurance, under which the insurer pays the legal expense incurred by a member of a group insured by the insurer. Just as Blue Cross-Blue Shield or similar insurance applies to medical and hospital expenses, so prepaid legal insurance applies to legal expenses.
9) Title insurance, which indemnifies the insured against loss caused by defects of titles to real estate. 10) Fidelity insurance, which indemnifies an employer against loss due to employee dishonesty.
11) Burglary and theft insurance, which covers loss or damage to property caused by burglary, theft, or robbery.
12) Reinsurance, which is a contract made by an insurance company with another insurance company to share liability for loss occa-sioned by the original insurance.
13) Annuity, which provides monthly payments to the insured begin-ning at a fixed date and generally ending with the insured’s death.
14) Aircraft insurance, which covers reimbursement for damage caused to an aircraft as a result of a forced or crash landing. Gen-erally, in order for an aircraft to be covered, it must be piloted by a pilot who meets certain government qualifications.
15) Group insurance, which is coverage of a number of persons by means of a single blanket insurance policy. The “master policy” is issued to an employer, creditor, labor union, trustee, associa-tion, bank, or credit union. The individuals for whom the plan is formed make individual application, for which they receive cer-tificates that refer to the master policy. ‘
16) Health insurance, in which the insured is compensated for hospi-tal and other medical expenses due to illness or accident.
17) Home owners’ insurance, which covers reimbursement for prop-erty damage to an individual’s home and also personal liability insurance. The property damage coverage in home owners’ insurance is generally broad and often includes damage by (a) fire and lightning; (b) windstorm and hail: (c) explosion; (d) riot and civil commotion; (e) vehicle or aircraft damage; (f) vandal-ism and malicious mischief; (g) smoke and heating or cooking; and (h) theft.