Insurance

What is insurance? Insurance is a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. When things go wrong it can be expensive and so, for many of these eventualities, insurance is there to take the financial risk on our behalf. A business that provides insurance agrees to take on risks on behalf of a company or individual, in exchange for a fee. It does this by providing the business or individual concerned with an insurance contract, sometimes called a ‘policy’. This policy will cover a person or business for many of the costs they have to meet as a result of a risk occurring and provides the policyholder with some security should the worst happen.

There are many types of insurance such as Medical and Health insurance, Retirement Annuity, Travel Insurance, Houseowner insurance, Investment Link insurance, Life insurance and Personal Accident insurance.

The word 'insurance' is quite familiar to all Malaysians. However, not everyone really understand the significance, types or advantages of insurance. Every one require an insurance. Insurance may provide us a guarantee because we could not estimate what will be happening next moment just like we never expect that earthquake will happen in Sabah, a place at the equator of Earth. 

In case of any tragic accident happens, we might face financial difficulties or other unexpected situation. Hence, we need insurance to protect ourselves against significant potential losses and financial hardship at a reasonably affordable rate. We say "significant" because if the potential loss is small, then it doesn't make sense to pay a premium to protect against the loss.