A Quick Guide on the Types of Insurance

June 3, 2016

When people hear insurance, there is usually a negative connotation placed with it. Like for example, someone has to perish in order to receive the benefits of the plan, which means that no one can enjoy any benefits while they are alive and kicking.

And many cannot tell the difference between this or that type of insurance without feeling confused. Sometimes even if it’s all explained to you, you end up having more questions than answers.

Insurance does not have to be so negative nor complicated. We have made a quick and easy guide for you to differentiate each.

1. Health Insurance

When you hear health insurance you think medical. This basically covers ending up in the clinic or hospital. It can cover a range of things, like check-ups, medicines, or hospital confinements. It can either be an in or out patient thing, it all depends on the stated benefits by your insurance provider.

Depending on the policy, the insured may either pay the hospital first and then have it reimbursed by the company, or the company will directly pay the hospital.

2. Life Insurance

Face it, we all have our time on this earth. Life insurance makes sure that the loved ones that you leave behind are financially taken care of. In the event that you pass away (cue gasps and knock on wood) a certain amount of money will be given to your beneficiaries.

Now who are beneficiaries? These your loved ones that will be receiving the money you have left behind in your demise. Beneficiaries are required to be your relative, either by law or by blood.

Beneficiaries can either be revocable or irrevocable. By irrevocable it means that you are giving consent to your beneficiaries regarding the decisions (e.g. taking out a loan or altering the number of beneficiaries) you make regarding your life plan. When you say revocable it means that you do not need their consent over these decisions.

3. Comprehensive Insurance

For comprehensive insurance, this could either be for your vehicle or regarding your life. Here, we will be tackling this in terms of the life coverage aspect. This usually entails being covered for both life and health, some policies may include a cash bonus by the end of the coverage period.

It is rare to find a comprehensive insurance policy that will not only assist you in the medical expenses you have incurred, but will also care for your loved ones once you pass away.

As with any other big purchase, you must make sure to do your research. If researching over the internet is not enough, you can contact different insurance companies in the Philippines to answer your questions.