Insurance is one of those big black holes you’re never too sure about. Besides the incomprehensible terminologies being thrown around, having an agent trying to convince you to commit to his package isn’t exactly very encouraging. For that reason, here is an A-Z insurance dummy manual to help you grasp the idea of being insured. In alphabetical order, here are some things you need to know:
A- Annual Income
Estimate your minimum income for the year to plan for major expenses throughout that year. You will be able to identify costs to cut and save some moolah.
B- Bank Statements
Check your statements regularly to keep track of your debts and whatnot. It is always advisable to clear your bills on time so that they don’t haunt you in the future.
C- Cyber Theft
You’re constantly on your smart phone, PC and tablet, sharing and receiving data. But, imagine having your pictures and confidential documents get wiped out or even, stolen! Now, that’s cyber theft.
D- Date of Maturity
The date of maturity, or expiration date, is the day on which a bond’s term ends, and its issuer repays the principal and makes the final interest payment. You should make sure that your insurance isn’t expired to be eligible for coverage if something unfortunate happens.
E- Emergency
Under insurance, the term emergency mostly refers to what your insurance covers. Pick a list that covers the most things. Life is unpredictable.
F- First Party Coverage
First party refers to the owner of the policy. In the event of a car accident for instance, first party coverage makes sure that you are covered for the damages.
G- General Insurance
General Insurance is an insurance policy that protects you against losses and damages, other than those covered by life insurance. Some types of general insurance include securing your vehicle, home, travels and properties. The coverage period for most general insurance policies is usually one year, whereby premiums are normally paid on a one-time basis.
H- Home theft
For that added peace of mind, a home contents insurance policy could always be handy.
I- Intermediary
An intermediary is an agent who assists the public in proposing for insurance. This is the middleman that speaks to you about insurance policies and helps you subscribe to a policy that’s suitable for you.
J- Jurisdiction Clause
This is a clause that determines who parties would go to in order to seek a resolution of a dispute in an insurance agreement.
K- Know-how
Before purchasing an insurance policy, ensure that you’ve done your research and have an idea on what you’d like the insurance policy to cover you for. If you’re thinking about snatch theft insurance for instance, do run a quick search on what you’re being covered for and prepare a list of questions for your agent.
L- Limit
There is always a limit to how much you will be covered for within any circumstances. Your insurance cannot give you the world for an accident, but it would be enough to give you a peace of mind. Check the maximum liability when considering an insurance, which may be expressed as ‘per accident,’ ‘per event,’ ‘per occurrence,’ or ‘per annum.’
M- Medical Insurance
This shouldn’t be confused with life insurance and it should cover treatment related expenses such as for intensive care unit (ICU), surgical fee coverage, home nursing and treatment on select diseases.
For now, let it all soak in so you can digest this information. Stay tuned for part two, coming your way very soon!
* The information above is contributed by AIG Malaysia.
