It is a contact between an insurance company and a policyholder, where the insurance company pays a specific sum to the individual’s family upon his death. The insurer pays the sum assured in exchange of periodical premiums paid by the policyholder.

This is a policy that is taken to cover the cost of medical care. It is divided into the numerous categories, including; i. In-patient – This is treatment to a patient who is admitted to a hospital for treatment that requires at least one overnight stay. ii. Outpatient cover – This is treatment to a patient who attends a hospital or clinic for treatment without staying there overnight. iii. Maternity cover – It is a policy that covers hospitalization costs and any eventualities that may result from pregnancy e.g. congenital illness. iv. Others – e.g. Dental and Optical covers.

This insurance policy protects a policyholder against any damage to or loss of an expensive personal property such as a rental or a dwelling. Forms of property insurance include fire and special/allied perils insurance and burglary insurance. It has three insurance coverage which include; i. Replacement cost – Covers the cost of repairing or replacing property at the same or equal value. It is based on replacement cost values rather than the cash value of items. ii. Actual cash value – Coverage pays the owner or renter the replacement cost minus depreciation. If the destroyed item is 10 years old, you get the value of a 10-year-old item and not a new one. iii. Extended replacement cost – It pays more than the coverage limit if the costs of construction have gone up. However, it usually does not exceed 25% of the limit. The limit is the maximum amount of benefit the insurer will pay for a given situation or occurrence.