Insurance companies offer different types of insurance policies that will cover different types of risks. For instance, when you get auto insurance, you will get financial coverage when you encounter accidents. With health insurance, your healthcare costs will be compensated. Everyone needs different types of insurance policies, how many do you have? Well, I have three, term life, health, and bike insurance. My term life includes endowment plan which will return me my insured amount after maturity. IN the mean time it also covers major diseases. So far I have made no claims with bike insurance and I use health insurance benefits frequently.