Insurance Information

What is the difference between Life Insurance, Health Insurance, Damage (Injury) Insurance, and Annuity insurance? Here is some of the basic Insurance Information.

Case:

There are so many types of insurances and each of them comes with their own functions. After learned some benefit about the insurance, Yoko intends to buy herself a good and suitable insurance. However, there are various insurances in the market such as Life Insurance, Health Insurance, Injury Insurance, Annuity Insurance and so on. The different company provides different service and function. Yoko would like to gather more Insurance Information and want to know what are the difference between them, are they all same?

Resolution:

There is two main part in the insurance market (Let’s say in Taiwan). The first part is the so-called “social insurance“. This applies to labor insurance, farmer insurance, military insurance and even universal health insurance. Most of this type of insurance has a social security significance, that is, with the promotion of national welfare policies. This kind of insurance is low in payment, but relatively low in compensation as well. So, the general public sometimes will seek other insurance outside the “social insurance” market, in order to fill their need.

The second part of the insurance market is “commercial insurance”. Although they are nearly 100 types of commercial insurance currently in circulation, they are basically based on the provisions of the Insurance Law.

Life Insurance Information

Life Insurance is based on human life as the subject of insurance, that is, people’s survive or death as an insurance accident. Life Insurance is divided into life insurance, death insurance, and life and death combined risk insurance.

Survival Insurance

The survival insurance is the life insurance that will pay you money according to the contract within the contract period. The purpose of the survival insurance are main in saving money, not the death and accident, it is also known as the savings insurance. If the insured dies within the insurance period, the insurer is not liable to pay the compensation and the paid insurance fee by the insurer is not refundable.

Death Insurance

Death Insurance is the life insurance that will pay you money if the insured death within the insurance contract period. Due to the different protection period, the death insurance can be divided into two types, they are “Term Life Insurance” and “Straight Life Insurance“.

“Term Life Insurance” means a period of time agreed between the insurance company and the insured for a period of insurance. If the insured dies within this period, the insurance company shall be liable for the payment of the insurance benefit. If the insurance contract expired and the insured still alive, then the insurance contract terminates. Since the end of the insurance period, the insurance company shall have no obligation to pay the compensation. The current selling of term life insurance is usually in one year, five year, ten year, or two decades, but sometimes also stop selling to certain old age people.

The main difference between Straight Life Insurance and Term Life Insurance is the period of effectiveness. As the term implies, until the death of the insured, and the insured nominated beneficiary receives the insurance compensation. The purpose of this insurance is main in protection, available in life-long payment and a certain period of payment.

Life-long payment also known as ordinary life insurance, that is, as long as the insured is still alive, the insurer must continue paying the insurance fee. but this payment method is rarely used in the market. As for a certain period of payment, also known as the deadline for payment of life insurance, the will be paid until a certain number of years, then the contract will continue until the insured death.

Life and Death co-Insurance Information

This insurance is also known as Endowment insurance, it provides money saving service to the insured until the insurance contract expired. While paying compensation if the insured died within the contract period. Endowment insurance in line with people’s recent protection needs, famous within family.

Health Insurance Information

As the term implies, Health Insurance will protect you if you are suffering from illness, accidental injury outpatient, hospitalization, surgical medical care, and so on. The insurance company will cover your medical expenses with fixed amount, the exact amount of medical fee, daily medical expenses, or the real insurance compensation, also known as the medical insurance. Often, health insurance generally comes with injury insurance and ordinary life insurance in a special or additional way, but there are also individual health insurance products, such as anti-cancer health insurance.

Injury Insurance Information

Most people’s daily lives, including work, transportation, sports, travel, and etc, may lose life and property caused by accidents, so the Injury Insurance has grown important. The coverage of injury insurance (vary to countries, this article is base in Taiwan) will compensate the insured person if he/she is suffering from accident injury, causing disability or death. “Accidental Injury” means an accident which is not caused by a disease, so this insurance is also called Accident Insurance. Often, an insurance company will issue a separate accident insurance, but there is also an additional way to attach to ordinary life insurance sales so that the insurance contract will expand its protection.

Annuity Insurance Information

Annuity Insurance refers to the period of Validity of the insurance contract. The insurance company will pay a certain amount of money (according to the contract) to the insured person in a certain period.

After in insurance payment, direct into the annuity payment period, known as the immediate annuity insurance. Insurance is paid by installment annuity insurance, after the end of the payment period, into the annuity payment period, is called deferred annuity insurance.

Summary

There are a lot of Insurance product in the market but are nothing more than Death Insurance, Life Insurance, or any other insurance mentioned above. You may see some additional insurance service, I believe they are created based on the basic type above.

If Yoko wants to buy herself an insurance, she should think about what she needs and the value of the insurance contract. Base on this, choose her most suitable insurance.

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