Please enable JavaScript.
Coggle requires JavaScript to display documents.
Planning for uncertainties (INSURANCE) - Coggle Diagram
Planning for uncertainties (INSURANCE)
Why do you need insurance?
Protect against loss to due unexpected event and hazard
Compensation for damages for personal belongings
Increased medical bills
Living expenses in disability or serious illness
What is insurance
Insurance is a legal contract that transfers risk from a policyholder to an insurance provider
How does insurance work?
Insurance company pay for damages due to insured peril up
to the limit of sum insured
Insurance company sells policies to many people and pool the
premium collected into a common fund.
The common fund helps to share risks
Life Insurance
Term Insurance
Whole life
Endowment
Investment - linked
Medical and health
Mortgage Reducing Term Assurance (MRTA)
Insures against risks such as premature death, illness,
disability and hospitalization
General Insurance
Any insurance other than human lives comes under the scope of general insurance
Takaful industry is relatively new compared to conventional
insurance companies in Malaysia.
Al-Mudharabah – means ‘profit sharing’
Al-Takaful – means joint guarantee whereby the
participants jointly guarantee amongst themselves.
Family takaful
The plan available is quite similar to the endowment policy in conventional life insurance practice where participants may choose a fixed period of coverage.
General Takaful Operation
– The protection on short term basis. The participants’contribution is wholly on tabarru (donation) basis and sharing of profits is on underwriting surplus and investment income. Surplus is derived after deducting company’s expenses from this fund
Information to consider before buying insurance policy
Understand about the types of policies
Carefully assess what you need to protect
Decide how much you want to insure – the level
of coverage
Compare *insurance companies and their
policies
Ensure to buy insurance through an agent
appointed by a licensed insurance company
Making a claim – under what situation & how to
make claims