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Investment Knowledge Chapter 6

Investment Knowledge Chapter 6

Insurance plan

Insurance Planning is the preparation of a plan to cope with future uncertainties that will affect life. (life insurance) and property (non-life insurance), which a good insurance plan will help mitigate the risk from the protection of the insured funds that we have done And if it comes to insurance related to that person, it is divided into 3 types:

1. Life Insurance, in which the insurer will pay compensation when the insured dies or when the insurance contract is complete.

2. Accident insurance ( Accudent Insurance) where the insurer will pay compensation to the insured if an accident occurs. dismemberment disability or loss of life

3. Health Insurance The insurer agrees to pay compensation for medical expenses to the insured in the event of illness.

Proper insurance planning should first consider the risks that may arise, such as the risk of premature death (dying too soon), the risk of living too long, and the risk of disability (living death). and the risk of losing income ( Loss of Income) if these risks have already arisen We or our dependents cannot bear the financial burden that may arise. Should choose suitable insurance to mitigate the financial impact, should consider the sum insured, not too much or too little. In order not to have to pay insurance premiums ( Premium) more than necessary

Life Insurance

Life insurance is insurance that has “life” as the insured object. In which the insurer will pay compensation to the beneficiary if the insured dies or pays the insured at the end of the contract period, and the insured must pay insurance premiums according to the agreement. Life insurance is divided into 4 basic types as follows:

1. Whole Life Insurance will provide lifelong coverage. The insured will be paid to the beneficiary when the insured dies. Therefore, it is suitable as a pillar of the family’s finances.

2. Term ( Term Life Insurance ) that will pay the insured money to the beneficiary in the event of the insured’s death during the specified period only and there will be no refund if the insured lives until the end of the contract.

3. Saving Life Insurance form that will pay the insured money to the beneficiary in the event of the insured ‘s death during the insurance period or refund the money to the insured when the contract expires. Savings life insurance is therefore a combination of life protection and savings.

4. A pension or a fixed income ( Annuity Life Insurance ) to pay the same amount. regularly to the insured upon retirement Therefore, it is a financial insurance to compensate for the reduced income.