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| Image Credit: Jonas Kakaroto |
What Types Of Personal Insurance Are There?
Many types of insurance can be contracted. You just have to take a look at our comparator to check the varied offer of insurance products that exist, from Car Insurance, with all the modalities there are, to Home Insurance or Life or Death. There are policies that everyone knows about and others that most people don't even know how they work.
To put order among so much supply, in the insurance sector there are three types of insurance:
- Personal Insurance
- Damage or Property Insurance
- Service Provision Insurance
And within each of these types of insurance, there are policies of the most varied, both in the coverages they offer and in the way they cover those risks.
Of all of them, Personal Insurance is the one that has people as an insured objects, although this protection is applied in many different ways. Today we are going to tell you what they are and what types of Personal Insurance you can hire.
Personal Insurance: Definition
Its very name gives the definitive clue to the definition of these policies. Personal Insurance for People is those that cover risks that may affect the physical integrity, existence, or health of the insured person.
People are at the center of this insurance product that protects a person, the insured, against the possibility of an accident that affects him directly and personally.
A death, being the victim of an accident with sequelae, or suffering from an illness or ailment, are situations for which this type of insurance offers various solutions, either in the form of compensation, providing private medical services, or as a savings product for the future.
Types of Personal Insurance
Depending on the characteristics of these insurance products, we can classify Personal Insurance into four broad categories:
Life Insurance
Personal Accident Insurance
Health Insurance
Dependency Insurance
Let's see what characteristics define each of this Personal Insurance.
Personal Life Insurance
Personal Life Insurance covers the death of the insured or a supervening situation of total and permanent disability due to accident or illness. When contracting Life Insurance, an insured capital is established that will be paid to the beneficiaries in case the insured risks occur.
Among Life Insurance, three types are distinguished:
Death Insurance or Life Risk Insurance
Survivor Insurance or Life Insurance Savings
Mixed Insurance
On the other hand, it should be noted that these policies are important in the role played by the three figures that, together with the insurer, intervene in the contract, that is, the policyholder, the insured, and the beneficiary. In case you are interested, in this blog we have talked about the differences between policyholder and insured, and also about the beneficiaries of Life Insurance.
Death Insurance or Life Risk Insurance
Death Insurance, also known as Life Risk Insurance, is something that we associate with Life Insurance. These policies commit the insurer that, if the insured dies before the end of the contract, the insured capital is paid to the beneficiaries designated in the Insurance.
In case the contract ends and the insured person has not died, the insurer does not have to pay any consideration. In addition, these policies can also include as optional guarantees, coverage of disability situations or accidents.
Survivor Insurance or Savings Insurance
According to the definition of life savings insurance (also known as Survival Insurance), beneficiaries are guaranteed the payment of the insured capital if the insured lives at the time of termination of the contract.
They are insurance designed to guarantee future savings and have an attractive tax treatment. In this type of policy we can find several modalities:
Insured Pension Plans (PPA)
Individual Systematic Savings Plans (PIAS)
Individual Long-Term Insurance (SIALP or savings plan 5)
Life Annuity Insurance
Mixed Life Insurance
Finally, some products included health coverage in their guarantees, so that if the insured person dies, the beneficiaries will collect the insured capital. And if it does not happen, the policy will comply with the profitability agreed in the contract, at the time of its expiration.
Personal Accident Insurance
Accident Insurance is the type of policy for people that has a greater presence. By contracting this policy, the insurer undertakes to compensate with an economic amount, in case the insured person suffers an accident that incapacitates him for the performance of his professional activity or even causes death.
In Personal Accident Insurance the beneficiary can be the insured or the person or persons designated as beneficiaries, depending on whether or not the accident causes the death of the insured. Due to their characteristics, these types of policies are contracted by professionals who carry out activities that involve a certain risk or by freelancers who need economic coverage in case of suffering an accident.
Health or Health Insurance
Health Insurance is among the most widespread Personal Insurance among households. Some 10 million people in Spain are covered by these policies. Also known as Medical Insurance provide the holder and his family with health and assistance coverage in the event of suffering from an ailment or illness. Depending on the characteristics of health coverage, there are several types of Health Insurance:
Health Care or Medical Staff Insurance
By contracting Health Care Insurance, the insurer provides medical-surgical care coverage based on a medical staff composed of professionals and private centers. These medical centers, doctors, and medical specialists are arranged with the company, to make themselves available to Health Insurance customers and provide them with medical services.
In these policies, the coverages are benefits of health services such as consultations with specialists or medical tests, within the limits established by the policy. In addition, Health Care Insurance can complement its coverage with certain economic benefits or with other additional coverage. If you want to delve into the subject, in this post we talk about the importance of choosing good insurance with a medical chart to your liking and needs.
Health Insurance with Reimbursement
What is reimbursement insurance: this type of medical insurance offers the insured the possibility of booking an appointment with any doctor or in any hospital center, anywhere in the world without having to be part of the medical staff of the insurer. However, in this type of health policy, the insured pays the medical expenses of the consultation or medical test that is done and, once done, must send the invoice and the medical report to the insurer. The Insurance reimburses all or part of these expenses.
Health or Indemnity Insurance
Health insurance offers financial compensation to compensate for the consequences of certain ailments and diseases. This post about Health Insurance points out the differences with other health policies. Some situations related to the state of health of the insured, such as sick leave or a period of hospitalization, can also be covered with compensation.
Dependency Insurance
This type of Personal Insurance is the least known. Dependency Insurance is a policy that guarantees compensation if the insured person suffers an accident or illness, whose physical consequences prevent him from leading a normal life and fending for himself. In this post, we tell you everything you need to know about dependency insurance and its price.
The compensation of the policies that cover the Unit can be collected in the form of a monthly annuity or as capital paid in a single term.
The Insurance can also offer its coverage by providing some assistance service when the insured is in a situation of disability that prevents him from fending for himself.