Insurance policies are important for anyone who wants to safeguard their family, assets, and themselves from financial risk or loss. These policies usually include but are not limited to life, home, travel, property, and auto insurance. In this article, we discuss six types of insurance policies that everyone needs.
What are Insurance Policies?
Insurance policies are a legal agreement between the insurance company and the insured person(s), business, or entity. They lay out what’s covered, what isn’t, and other details of your agreement. Reading your policy also ensures you are aware of your duties and the company’s and that your needs are covered in the event of a loss.
Types of Insurance Policies
1. Life Insurance
Life insurance is a contract between an insurer and a policy owner. It is designed to assist individuals and families in building wealth and protecting the interests of their loved ones and dependents in the event of sudden death. The insured pays annual premiums, and the life insurance policy promises that the insurer will pay a specified amount to the beneficiaries of the insured after death.
At Leadway, we also have term life insurance which is for a year (renewable) and takes only a N10,000 premium but can pay up to N1,000,000 to your beneficiary. There is also a lifestyle protection plan that helps you and your family maintain your lifestyle for life, even in the event of any undesired event.
2. Endowment Policies
Endowment policies are insurance policies that help the insured save consistently over a certain length of time to receive a lump sum payment at policy maturity if they survive the policy term.
This insurance policy provides you with a combination of life insurance cover and a savings plan. Leadway has two endowment plan options – the Target Plan and Education Target Plan.
- Target Plan is a goal or futuristic plan in which the policyholder specifies a target sum they want to reach by a future date. It guarantees that an individual meets future financial targets and obligations. It helps you save towards a goal and provides you an opportunity to build money in the future.
- Education Target Plan guarantees the continuation of a child’s education if anything happens to the parent, guardian, or sponsor of the child’s education.
3. Auto Insurance
This insurance policy is an agreement between you and an insurance company that covers your financial loss in the event of an accident or theft. Your insurance company agrees to recover your losses as specified in your policy in exchange for you paying a lot of money.
There are different types of auto insurance:
- Comprehensive insurance – covers loss or accidental damage to the insured’s vehicle as well as damage to third-party.
- Third-party auto base insurance – covers the accidental damage to the insured’s vehicle partly and covers the damage to the third party.
- Third-party insurance – covers the damage to the third party alone.
Read more on the difference between comprehensive and third party auto insurance
4. Travel Insurance
Travel insurance is a type of insurance cover that protects you against the financial dangers of traveling. When you travel for work or pleasure, it makes sure you’re covered in case of accidents, illness, property damage like lost luggage, a delayed flight, a missed flight, medical emergency, personal money loss, or trip cancellation.
5. Home Insurance
Home insurance is the insurance for homeowners. It protects the structure and/or contents of your home. It is suggested for anybody who owns a house or apartment, to help safeguard their house and personal items from damage caused by floods or storms. If anything unexpected happens, home insurance can help you get back on your feet.
At Leadway, our L-Happy insurance policy protects you against loss or damage to your house and properties including your car(s) and has a Personal accident cover for bodily injury or death. It also includes a Legal Occupier cover if you’re in a rented apartment. So, whether it’s your personal property or not, you’re covered.
6. Savings Plan
An Insurance Savings plan is a type of insurance plan that allows you to save, invest, and amass wealth to meet your future financial goals. It goes a step further by providing added life insurance that protects you and your loved ones in the event of death, critical illness, or permanent disability. It helps the policyholder create and protect wealth. It could be short-term- as short as one year or long term (up to 20 years) and regardless of what your plans are our savings and investment plans come with flexible features that cater to your unique needs. They allow you to protect your financial future for your children’s education, vacation expenses, marriage, or other important goals.
Get an Insurance Policy That Suits You Today
No insurance policy is more important than the other. It depends on what you need at a particular time.
Ready to get started? Check our insurance products and rest assured of protection no matter the situation. Select the policy that works for you today.