Limited Insurance

A limited pay insurance is a type of insurance wherein the insurer has to pay premiums over a specified period, before the policy expires, and such policy will be effective for a particular period. This type is usually availed because the insurer can be free of future liability but still remain insured. Premiums for limited pay insurance are usually higher than other types of insurance. Thus, it is not advantageous to people with low monthly income.

A limited benefit insurance is usually associated with health insurance. It is often called `barebones` plan. This type of insurance provides lesser benefits than a traditional health insurance in exchange for much lower premiums. It does not cover all the costs for serious medical problems including operations and accidents. It does not provide complete health protection for the insured person.

A limited liability insurance is usually associated with a business entity. It is a type of insurance that promises to pay any compensation and court costs the insured person becomes legally liable to pay. This type of insurance also covers a business property in the event of a lawsuit filed against the business (insured). Limited liability insurance is very helpful to the stockholders of the insured company because their investments are secured and protected.

There are many different types of insurance. A person should be careful and keen in choosing which type is the best for him.