• Auto insurance plans are among the common insurance products purchased by Americans.Auto quoi ? image by photoam from Fotolia.com
  
  An insurance plan, or policy, is a legally binding agreement between an insurer and a policyholder. The policyholder agrees to pay premium costs to the insurer in exchange for guarantee of payment on events covered and outlined in the terms of the insurance plan. Many types of insurance products exist, but several major categories of insurance plans are prevalent.
  
  

Health and Dental Insurance Plans

• Health insurance plans typically include employee group policies, private individual policies, and government-sponsored programs. Dental insurance is similar and can be purchased a separate insurance plan or in combination with health coverage. Health products are an exchange of premiums (sometimes paid in full or partially by employers) for medical benefits that typically include office visits, routine procedures, surgeries, hospital stays and more based on your particular plan. Dental plans include similar benefits related to dental care, including routine checkups, cleanings and dental procedures.
  
  

Car Insurance Plans

• Car insurance plans are an exchange of premiums for guaranteed payments on bodily injury or property damage associated with automobiles and accidents. Most states require coverage for liability protection, which pays for bodily injury or property damage to another party in an accident. Additional coverage commonly includes collision protection when you are in an accident, and comprehensive protection, which covers other common (non-collision) sources of auto damage.
  
  

Homeowners' Insurance Plans

• Homeowners' insurance is a vital insurance category for most Americans as it protects the most significant investment many people make. Homeowners insurance begins with building coverage. Mortgage lenders typically require protection for the "physical structures" of your property since they hold a lien against your property as part of their investment in financing your home. This includes total loss replacement and property damage benefits. Contents insurance is often added to cover lost valuables in your home. Property liability benefits help you avoid financial ruin from lawsuit if another party is injured, dies or suffers property damage while on your home property.
  
  

Life Insurance Plans

• Life insurance products are an exchange of premiums for benefits to be paid to surviving family members, or designated beneficiaries, of the policyholder. Products are purchased by workers that want to provide financially for their families in the event of untimely death. One common policy type is term life, which pays benefits should death occur during a stated term and under covered conditions. Whole life plans, often more controversial, combine life insurance and savings investments into one product. You pay premiums for life and benefits are based on covered amounts, stated terms and dates, and paid-to-date premiums.