21⟩ What is an endowment plan in life insurance?
A combination of protection and savings whereby the money will be paid at the end of a specific period upon your demise or if you suffer total and permanent disability.
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53 Insurance Questions And Answers
22⟩ What is term plan in life insurance?
This offers insurance protection for a limited period only whereby the money is paid up if you pass away or if you suffer total and permanent disability.
23⟩ Tell me what is personal accident insurance in general 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.
24⟩ What is a basic fire insurance policy?
This policy provides you with coverage against loss or damage to insured property (i.e. house, shop and factory) caused by fire, lightning or explosion.
25⟩ What exactly is insurance?
Insurance is the transfer of risk by an individual, such as yourself, or an organisation, such as your business, to the insurance company. You or your organisation will thus be known as the policy owner. The insurance company receives payment in the form of premium and will compensate you in the event of losses or damages sustained by you.
26⟩ What is whole of life plan in 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.
27⟩ Tell me what is medical and health insurance?
Medical and health insurance, is an insurance policy which is designed to cover the cost of private medical treatment, which can be very expensive, especially with hospitalisation and surgery. Medical and health insurance also ensures that you will not have to worry about the cost of seeking treatment during emergencies. In addition, medical and health insurance also provides you with an income stream while you undergo treatment.
28⟩ Tell me what is a 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 traveller.
29⟩ What is a house owner's insurance policy?
This policy provides additional coverage compared to the basic fire policy. It may include loss or damage due to flood, burst pipes, etc.
30⟩ What are the types of insurance policies which you can buy to protect your home?
There are three main types of policies which you can buy to protect your home:
☛ Basic fire policy
☛ House owner policy
☛ House holder policy
31⟩ What is a house holder's insurance policy?
This is a policy which covers your household contents and includes coverage for fatal injury to you as the insured. This policy does not cover damage to the house itself.
32⟩ Tell me if you know what is home insurance?
Home insurance, or house owner/householder insurance as it is also known, is one of the most important insurance policies you can buy in your adult life. Your home is one of the largest financial investment you have made, and that is why it is so important to protect it.
33⟩ What is a whole life plan in life insurance?
Life-long protection and premiums are paid throughout your life and the money including any bonuses will be paid when you pass away or suffer total and permanent disability.
34⟩ When do you need motor insurance?
You need motor insurance when you buy a motor vehicle. Motor insurance covers your vehicle, be it a motorcycle, a car or a lorry, in case of accidents or theft.
35⟩ What is the payment mode in general insurance?
The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.
36⟩ What are the main products which are included in general insurance?
The main products of general insurance includes:
☛ Motor insurance
☛ Fire/ House owners/ Householders insurance
☛ Personal accident insurance
☛ Medical and health insurance
☛ Travel insurance
37⟩ What are the products under general takaful?
The products under general takaful are:
☛ Home takaful
☛ Motor takaful
☛ Personal accident takaful
38⟩ What are the basic principals of takaful?
Basic principals of takaful are as follows:
☛ You must have a legitimate financial interest in the subject matter to participate in a takaful plan.
☛ A takaful contract is based on the principle of utmost good faith (trust), whereby you need to disclose all material information required.
☛ You can only recover your financial loss and not gain any profit as a result of a quantifiable loss.
☛ In determining the compensation, the takaful operator will identify the actual most important cause that brought about the loss.
☛ After you have been compensated for your loss, the takaful operator has the right to claim from any third party responsible for your loss.
☛ If a loss is covered by more than one takaful plans or insurance policies, the takaful operator that has made payment to you may call upon other takaful operators or insurance companies to contribute proportionately to the payment.
39⟩ What are the 2 types of takaful?
There are 2 types of takaful:
☛ Family takaful
☛ General takaful
40⟩ What are the products under family takaful?
☛ The products under family takaful are:
☛ Family takaful
☛ Investment linked takaful
☛ Child education takaful
☛ Medical & health takaful
