Define some common terminology Discuss the importance of having a life and health insurance policies Identify the

he types of life and health insurance policies Explain the features and benefits of these policies

Income can be terminated

Disability

Retirement

Unemployment

Death

Life insurance contract is an agreement between the insurer and the insured whereby the insurer agrees to pay sum of money to the insured or his beneficiaries on the happening of certain events in return for the premium payments.

Designed to meet the needs of individuals for themselves or for their dependants

Life insurance is necessary because it can provide the following

benefits:

Income fund Education fund Burial fund Retirement fund Mortgage

Scope of cover :

The events in this contract for which the

payment are to be made can either be:

Death of the life insured Or upon maturity of the contract (depending on the type of life insurance policy)

1.

2.

Term insurance Provides protection on the life of individuals for a specified number of years Sum insured is only payable if death occurs within a specified period, nothing is payable if he survive till the end of the term Premium is low since protection is temporary Whole life Provides for the payments of sum assured and bonuses, if any, upon the death of the life insured or upon reaching a certain age Premium payment is made throughout life or for a limited period

3.

Endowment

Provides for the payment of sum assured and bonus, if any, upon the death of the life insurance during fixed term or maturity if the insured is still living

Provides cover against death and includes provisions for saving as well

The amount received at the end of agreed period comprises of the premiums paid plus bonuses

1.

Ordinary life
Design to meet the needs of individuals for themselves or for their dependents Covers a wide range of products and policyholder may select the one that is suitable to meet his needs and ability to pay. Normally issued with sum insured above RM1000 Premiums are payable annually ,quarterly, or monthly

2.

Industrial Life Insurance

Also known as home service insurance Premiums are paid at frequent shorter intervals The life office usually employs a collector to go from door to collect the premium Face amount of the policy is small compared to those policies in the ordinary life. Premiums are high because of high administrative cost.

3.

Group life
Provides coverage to groups of people under one master policy Used to provide cover on the lives of employees members of certain group

Very low cost of protection Evidence of insurability is not required and it is yearly renewable

An annuity is another product of life insurance company Insurance contract: Insured pays to the insurer regular

amounts of money called the premium. In return, he hopes

to be paid a lump sum of money upon his untimely death or upon the maturity of the policy.

Annuity contract: The annuitant pays a lump sum of money called the purchase price, to the insurance company. In return he hopes to receive installment payments called the annuity for the rest of his life or for a specific period. The objective of annuity: To provide some form of pension benefits to the annuitant

1.

 Why

we need Health insurance?

The soaring of price of medical cost The need for quality medical attention

Scope

of cover

Disability income insurance

Provides periodic payments when the insured is unable to work because of sickness or injury The amount payable is normally a percentage of the insureds monthly income.

Medical expense insurance

Pays for medical costs resulting from injuries or sickness This include hospitalization charges, physician fees and other necessary expenses incidental to the injuries or sickness The amount paid subject to a certain percentage of each cost incurred or up to a certain maximum amount Certain term are given specific meaning and definations

 Disability-

inability of the insured to engage in his normal occupation or in any gainful employment. Waiting period/deferred period duration of time from the start of the illness/injuries to the time when the disability benefits begin Accidental bodily injuries: injuries that are caused by unintentional and accidental means.

 Personal

accident insurance may be a good option when:

A person enjoys a particularly active lifestyle and wants protection against the death or dismemberment by accidental reason A person has very active family members and wants protection against death or dismemberment of a spouse or dependent child due to active A person cannot qualify for life insurance due to certain medical reasons but still wants protection against death or dismemberment by accident.

 Scope

of cover

Provides benefits in the event;The insured person suffered bodily injury resulting solely and directly from accident by outward, violent and visible means.

Personal accident insurance pays an agreed-upon amount of compensation if the insured person is injured or killed in an accident Depending on the type of injury, different types of compensation are paid.

Death

Capital sum

Permanent Disablement Temporary disablement Medical expenses

Capital sum (% - max. 100%) Weekly benefits (max 104 weeks) Actual amount (max. sum insured)

Personal injuries include medical expenses resulting from a loss, wages lost while the insured is recovering from the injury, estimated future income the injury prevents the insured from earning, and pain and suffering caused by the injury An accident has been defined as an unlooked for mishap or untoward event which is not expected or designed Violence. The smallest degree of violence is sufficient to satisfy the requirement of the contract Disability is the inability of the insured to engage in his normal occupation or in any gainful employment