Insurance plays an invaluable role in our lives. It offers a wide variety of coverage from any eventuality and gives us the feeling of security and protection against losses, either natural or manmade.

There are two major classification of insurance: life insurance and non life insurance.

1. Life insurance offers financial security to beneficiaries, in most cases, spouses and dependent children, upon the death of the insured. It provides monetary support to augment financial obligations that become due upon the demise of the policyholder.

Policy proceeds may be paid as a lump sum or as an annuity; that is, payment may be at regular interval, either for a definite time or for the recipient

2. Non life insurance, on the other hand, is what we call the general insurance. This covers or protects the policy holders from loss or damage caused by certain risks.

Non life insurance includes:

property casualty insurance, which covers car accidents, burglary, fire and storm damages;
health disability insurance, which provides expenses for medical treatment, compensation in the event the insured can no longer work; and
business commercial insurance, which provides a shield from business risks such as fluctuation in interest rates and increasing prices, accidental injuries in the workplace, natural calamities, and others.

Is there a need for an insurance policy? The answer is yes. We have to shelter ourselves and our loved ones from the unexpected that sometimes happen. Most insurance companies ofer invoice factoring which is rather convinient.