TYPES OF INSURANCE
All too often we hear about various types of insurance policies without really understanding what they’re and more importantly, what they protect. Actually, there are 2 main types of insurance, which are life insurance and general insurance which covers different phases in your life.
Life insurance is basically an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event like death of the individual who is insured / safeguarded. This protection is also offered in a Family takaful plan, a Shariah-based approach to conservational / protecting you and your family.
The coverage period for life insurance is usually more than a yr. So this requires periodic premium payments, either monthly or annually.
Risks that are covered by life insurance are:
Main products of life insurance include:
General insurance is an insurance policy that protects you against losses / damages other than those covered by life insurance. For more inclusive coverage, it is important for you to know about the risks covered to make sure that you and your whole family are protected from unforeseen losses.
The coverage period for most general insurance policies and plans is usually 1 yr, whereby premiums are normally paid on a one-time basis.
Risks covered by general insurance are:
Property loss, for i.e. stolen car or burnt house
Liability arising / increasing from damage caused by yourself to a 3rd party
Accidental death or injury
General insurance main products includes:
Fire / House owners / House-holders insurance
Personal accident insurance
Medical and health insurance