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4 main types of insurance

So the insurance quadrant is the four main types of insurance that a person should consider when purchasing his or her first insurance.

So the first would be Life Insurance and Total Permanent Disability. So this is a payout in the event of death or disability. And it's also called Hibah in Takaful policy.

The second quadrant is Critical Illness. So this is a product to pay out cash in the event the person is diagnosed with one of the listed critical illnesses, for example, cancer, stroke, heart attack, etc. This product is useful to pay for income replacement if the person is unable to earn an income due to that particular critical illness. But if the person is still able to work, no problem, the cash out will still payout anyway.

The third is the Medical Card. So the medical card is to cover all the hospitalization bill medical bills. So this will cover the hospitalization.

And the fourth quadrant would be Personal Accident. And this product is also known as PA.

So let me explain to you how it works, giving a few examples.

So if the person has dengue fever, so for dengue fever, then medical care will be applicable to cover the admission, let's say for about a week.

And if the person is diagnosed with cancer, the medical card will cover the chemotherapy, radiotherapy, etc. And because cancer is one of the listed Critical illnesses, this will also payout. So if the person survives, then the product uses Medical Card and Critical Illness. And if the person doesn't, then Life Insurance will also payout to the beneficiary.

So 3rd example, if I get into an accident, the medical card will cover the medical bills, and if that's it. So only the medical card will be applicable in the situation. If the accident causes some disability, then Personal Accident will have a payout as well as Life and Disability. So both of these will pay out if there is death or disability because of an accident.

So how about, for example, natural death? Then only life insurance will payout.

So I hope the examples have given you better clarity on how each of these products works in a package insurance policy. So this can be taken in a comprehensive plan or they can also be taken separately. So I hope this clears up some confusion.

This is Wan, from The Insurance Guys. See you next time. Bye.

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