What is insurance and what types of insurance are available?
Life is full of risks and that's why insurance comes into being. There are many types of insurance on the market, first you can start with the following basic information.
First, why do people want to buy insurance ? Many people believe that the potential risks are everywhere from the time we wake up and leave the house until we return in the evening. Every day, we face unpredictable risks. "Prevention is better than cure" is what we can do, by buying an insurance package for us.
What is insurance and how does it work?
Insurance, understand simply is a major form of risk management used to protect yourself or property from the risk of accidental, unforeseen. When you buy insurance, that means you transfer the costs of a potential loss to the insurance company in exchange for a fee, called a premium. For this payment, the insurance company (company) promised to "compensate" or compensate you in case of contractual losses.
The premium will be paid later according to the terms of the contract. Details of the conditions and circumstances in which the insured person will be financially compensated and the time to be committed in the insurance contract.
There are many types of insurance, each with the effect of compensating for different losses depending on the needs of each person. A single policy may include one or more related risks, depending on the insurance provider you choose.
GoBear would like to list the basic types of insurance that many people choose:
• Health Insurance
Health insurance covers medical treatment costs. Understandably, when you buy health insurance, it will be paid by the insurance company in part or the whole of the cost of medical examination and treatment as well as the cost of purchasing medicine for medical examination and treatment. Where are you covered depending on the value of the insurance package you choose.
This is the type of insurance that most people choose to invest because the medical examination and treatment costs are increasing. Even simple tests are quite expensive and health insurance will work when you have a health risk or are injured by accident.
• Life insurance
Life insurance offers financial benefits to your loved ones (such as parents, children ...) that can live on that money if you die. This insurance policy usually allows the buyer to pay in one-time or annual payments.
Life insurance can also be understood as a guarantee, financial protection and a form of savings. In fact, life insurance companies in Vietnam also diversify insurance products, with many different types.
• Car insurance
If you have a car or any expensive car, you may need to buy insurance for it. This helps protect you from financial losses in case you encounter a car-related accident. These may occur unexpectedly and unexpectedly. Therefore, you need to be prepared for it, even if you are a careful driver.
In addition to accidents, car insurance will also be responsible if your car is stolen or damaged.
• Travel insurance
Travel insurance is a policy for overseas travel. Travel insurance includes travel risks such as delays, cancellations or including loss of documents, property and health on your journey. Travel insurance is usually applied on a trip, valid during the travel period you declare and is often considered a "safe ticket" to prevent health risks, trips, luggage, paper sheets are even life when you travel or work abroad.
• Property insurance
Property insurance is a wide type that has many types. Basically, it is a form of protection for your property against risks, such as fire, theft, or damage caused by natural disasters (earthquakes, storms, floods ...).
Popular property insurance can be mentioned as: housing insurance, insurance of other valuable assets such as diamond rings ...