bills for hospitalization or illness, thus reducing the burden on the family and loved ones. Some of the major illnesses covered by this policy are cancer, heart attack, coma and others. Serious disability and disability to work are also covered. Long-term policies like this provide income after retirement.

Types of Life Insurance

Term insurance

This insurance is called temporary insurance. It covers the person against death for a limited period of time, term like retirement or until the children grow up. The policy expires once the term is complete. If no claims are made during the specified period, you will not be receiving any benefits. Term Insurance is suitable for those who are looking for short-term coverage.

Whole Life insurance

This insurance is called permanent insurance. For this type of insurance you need to pay a premium of which certain amount goes towards insuring your life and the rest to an investment account which, can be either an interest bearing account or a stocks and bonds investment account. Whole life insurance is suggested for those who are looking to have a policy for the rest of their lives or have investment goals.

Health Insurance

United states unlike many other countries does not have any national health insurance. It is up to the individual to buy health insurance or to find employment where health insurance is a part of the compensation package. But doing without health insurance can be a big mistake as the medical treatments in United States can be quite costly. This policy covers any debilitating illness tiding you over any expensive medical bills and loss of income.

Generally the medical insurance is divided into Hospital benefits and hospital and surgical policies. This insurance comprehensively covers hospital expenses like operations, scan and x-ray, which is usually paid in the form of a pre set amount for each day of hospitalization. The health insurance policy covers expenses for doctors visits, hospitalization, prescription drugs and other health-care costs.

Disability Insurance

This insurance will comprehensively cover disabilities due to illness/accidents during which you may not be able to work. This insurance assures that a considerable amount of income will be coming in even in the case you are unable to work as a result of accident or illness coming in even if you are unable to work as a result of accident or illness. If you are a part of the social security system this insurance will be covered partly. Disability payments are not taxable.

Liability Insurance

This insurance is not mandatory, though many house owners purchase it for protecting their homes. Liability insurance protects in case somebody successfully sues you for a personal injury or other type of loss that the court decides was your fault or responsibility. If you don't have much property or money then the need for liability insurance doesn't arise.

Home Owners Insurance

Homeowners insurance covers a few basic risks to home or an apartment and its interiors. One basic important insurance is the fire insurance, which protects against the damaged caused to your house by fire. In some particular areas insurance can be purchased for certain natural calamities like floods and earthquakes.

Theft insurance is expensive one compared to others. The high cost of this insurance relates to the high amounts of consumer fraud.

Automobile Insurance

Automobile insurance is mandatory in all states. In order to register a vehicle you need to purchase a minimum amount of insurance, so that in any case you injure a person and not able to pay for the damages it will be recovered by the insurance company.

The rates of this automobile insurance vary from one state to another. Additionally even a collision insurance can be bought that covers any repair to the cars body due to accident and theft insurance.

Some points to be considered while buying insurance:

• First of all you have to consider whether you want it as a form of investment or purely for the purpose of insurance. If you are expecting a lump sum of money to accumulate in the long run then you may have to assess the coverage you would be requiring.
• There are many companies offering insurance policies at attractive prices. Just don't get attracted by their attractive policies. Shop around and find the policies best suitable for you and assess which one offers attractive packages.
• Assess your financial health well before taking any policy. It is wise to choose a less expensive policy when you cannot afford an expensive one.
• It is always safe to buy insurance from a reputed company.