Monday 19 December 2011

What is insurance?

Mainly purpose is to transfer of risk by an individual such as yourself or organization to insurance company. In other word, help to ease your burden in the beginning of casualties.

Upon buying insurance from insurance company, you or organization will be known as policy owner.

The insurance company receives payment from you or organization in a form of premium and will compensate you in the event of losses or damages sustained by you.

Type of insurance:

1)    Investment link insurance.
An investment-linked insurance plan is a life insurance that combines investment and protection. Your premiums provide not only a life insurance cover, but part of the premiums will also be invested in specific investment funds of your choice. You get to choose how to allocate your insurance premiums towards protection and investment.

2)    Medical and Health Insurance
Medical and Health Insurance (MHI), is an insurance policy which is designed to cover the cost of private medical treatment, which can be very expensive, especially with hospitalization and surgery. MHI also ensures that you won't have to worry about the cost of seeking treatment during emergencies. In addition, MHI also provides you with an income stream while you undergo treatment.

3)    Personal Accident insurance
Personal Accident insurance or PA insurance is an annual policy which provides compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events. It is different from life insurance and medical & health insurance. You can either take a PA policy for yourself or a group policy for your family, protecting you and them anywhere in the world, anytime of the day. PA insurance provides 24-hour worldwide insurance protection

4)    Life Insurance
Buying life insurance for you and your loved ones helps provide some financial security in times of hardship. The money from your policy will be paid to your loved ones when you pass away or to you should you suffer a total and permanent disability or loss.

5)    House owner insurance
Cover your home as home is one of the largest financial investments you’ve made and that are why it's so important to protect. There are three main type of policies are Basic Fire Policy, House Owner Policy and House Holder Policy.

6)    Retirement Annuity
A retirement annuity is a contract by which an insurance company agrees to provide you with a stream of income during your retirement years. Generally, a retiree may need about 60% of his/her last drawn salary to maintain his/her existing standard of living during retirement.

7)    Travel insurance
Travel insurance coverage is usually limited to the period of your travel. However, some insurance companies may offer various combinations of protection to cater to the specific needs of customers, including long-term annual policies for a frequent traveler.

Source: Insuranceinfo

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