Advertisement
|
All too often we hear about various types of insurance policies without really understanding what they are and more importantly, what they protect. The truth is, there are two main types of insurance, namely life insurance and general insurance which covers different aspects in your life.
Things I Should Know
- Basic principles of insurance
- Where can I get insurance products?
- Tips on buying Life insurance
- Dealing with insurance and takaful intermediaries
- Important provisions in
a Life insurance policy
Am I covered?
What Else Can I Do?
Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured. This protection is also offered in a Family takaful plan, a Shariah-based approach to protecting you and your family.
The coverage period for life insurance is usually more than a year. So this requires periodic premium payments, either monthly, quarterly or annually.
The risks that are covered by life insurance are:
- Premature death
- Income during retirement
- Illness
The main products of life insurance include:
- Whole life
- Endowment
- Term
- Investment-linked
- Life annuity plan
- Medical and health
General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.
The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.
The risks that are covered by general insurance are:
- Property loss, for example, stolen car or burnt house
- Liability arising from damage caused by yourself to a third party
- Accidental death or injury
The main products of general insurance includes:
- Motor insurance
- Fire/ Houseowners/ Householders insurance
- Personal accident insurance
- Medical and health insurance
- Travel insurance
Advertisement
|