A contract of insurance, describing the term, coverage, premiums and deductibles also called insurance policy. Insurance has become a very important part of many people's lives as they realize the need to provide protection for different areas of their everyday life. There is a wide variety of insurance policy available today. There are a number of variables involved in each insurance policy that must be taken into consideration before purchasing the policy. The contract specifically makes the insurance company liable to pay for any loss that is specifically stated in the Insurance Policies. Most policies will accurately describe the types of losses covered and the amount of money that the company will pay for those losses. The various insurance policies available are :

• Life Insurance Policy - It gives financial security against the loss of life. It includes whole life an term life insurance policies under it.


• Auto Insurance Policy - It aims to provide benefits to you, your family, and your automobile in the case of some mishap, an accident.


• Travel Insurance Policy - The coverage includes flight accident insurance, trip cancellation insurance, travel medical insurance and even custom insurance products.


• Medical Insurance Policy - It covers Indemnity, HMO, PPO and POS. They all have different coverage priorities.


• Farm Insurance Policy - Farm Coverage is available for all of your different types of farm structures. From the dwelling you live in, including your contents and personal property, to your barns and other farm outbuildings.


• Home Insurance Policy - A basic home policy covers perils, which are specifically named risks such as lightning, theft, fire, smoke, wind and explosion.


• Risk Oriented Insurance - It covers numerous uncertainties, including property-liability exposures, employee benefit programs, and various other financial risks.


• Miscellaneous Insurance Policy - It is an addition to your existing insurance giving you an extra security which includes Glass Insurance, Pet insurance, Boat insurance, flood insurance etc.

It is important to understand this limitation of insurance since there are many types of losses which can not be compensated by money. For example, insurance can not replace a life or take away the emotional injury or pain which often accompanies an accident or serious illness or compensate for loss of the "sentimental" value of an item of property. Insurance policies offer protection against economic loss, that is, loss or damage which can be measured in purely financial terms and compensated by money. The purpose is to place the injured party, as nearly as possible, in the same financial position as if the loss had not occurred.