Types of Insurance Policies - JSS2 Business studies Lesson Note

There are various types of insurance policies designed to meet different needs. Some common types include:

• Term Life Insurance: Provides coverage for a specific period, such as 10, 20, or 30 years. If you die during the term, your beneficiaries receive the death benefit.
• Whole Life Insurance: Offers lifelong coverage and includes a savings component known as cash value. It can also be used as an investment vehicle.
• Health Maintenance Organization (HMO): This type of health insurance plan typically requires you to choose a primary care physician and get referrals for specialist care.
• Preferred Provider Organization (PPO): PPO plans offer more flexibility in choosing healthcare providers but may have higher out-of-pocket costs.
• Comprehensive Auto Insurance: Provides coverage for a wide range of incidents, including accidents, theft, vandalism, and natural disasters.
• Homeowner's Insurance: Protects your home and personal belongings against damage or loss from covered perils.