Question

Explain the different types of insurance coverage you need including health, life, auto, homeowners. With each type of insurance coverage explain how to select the appropriate amount of insurance and the benefits/costs of such coverage

Answer 1

Thanks for asking.

The diiferent types of insurance are

Health Insurance: Is the insurance taken to cover the cost of medical care in case of hospitalisation.
when you fall sick or develop a sickness or succumb to an injury your past savings can exhaust in paying the bills. in order to safeguard that an health insurance is taken.
Typically it is ten times your basic salary but is not a rule you may increase or decrease depending upon the premium you can pay.
Benefit of this is to safe guard your hard earned money which you have saved and planned to spend somewhere getting exhausted in paying hospital and other charges.

Life-Insurance: Is an insurance which is taken which pays a certain sum of money which you have insured to your dependents after your death. There are two kinds of life insurance i.e endowment plan where you get a certain sum after your death or after a specific time period in case you survived that time period. It is generally expensive so coverage will be less
Term plan: In this case insured sum is paid only in case of death. you cannot claim a sum if you have survived in the insurance period.
Normally it should be twenty to thirty times your basic salary
benefit in this case is not direct but implied as you have mental peace that your dependants future will be secured in case you die

Auto Insurance: Is an insurance that protects a person in case of financial loss if automobile you own or drive faces accidents or theft.
Normally this should be the ideal or net present value of your automobile
benefit of automobile insurance is mental peace

Homeowners Insurance: Is insurance against financial loss of house and assets in the house. It means a certain sum of money will be paid in case you face the loss.
Normally this should be quest to net worth of the house and net worth of the property kept in the house.
Benefits are mental peace as you are protected against any uncertainties.

The cost of each differs by the insurance providers and is provided on individual cased.

Hope it helps