Types of Insurance
Insurance can be broadly grouped into life insurance and indemnity insurance. You will be able to understand the insurance type by referring to the following table.
| Type | Target | Selling product type | Insurance product type |
|---|---|---|---|
| Life insurance | Body of the insured | Pure endowment insurance | Insurance product type |
| Mortality life insurance | |||
| Endowment insurance | |||
| Indemnity insurance | Property of the insured | Property, interest, responsibility, guarantee | Car, fire, vessel, credit assurance, travel, leisure, etc. |
Selecting of the insurance product
As mentioned above, when selecting the product you should have the proper situation and corresponding purposes to cope with.
Credit insurance
- The suitable insurance product when borrowing or borrowed money from the financial institute.
- You can take up a credit guarantee insurance to increase your credit before borrowing money.
- If you cannot meet your obligations or seriously injured due to an unexpected accident after borrowing money, the insurance company will compensate for the loss.
Pension (saving type) insurance
| Type | Characteristics and cautions |
|---|---|
| Interest rate | Select a fixed rate type or variable interest rate type from a long-term view. |
| Half-way cancellation | Refrain from half-way cancellation because it is disadvantageous to tax payment reduction. |
| Pension commencement age | If the pension age is too early, the pension amount becomes smaller. |
| Payment period | If the payment period is long, the pension amount increases and payment of premium becomes less burdensome. |
Educational endowment insurance and child insurance coverage
- The educational endowment insurance and child insurance coverage grows as much as your child grows.
- The desirable product is the one that insures your child’s disease and accident at a time. In particular, the product with a large special contract insurance amount for hospitalization expenses and surgery expenses is recommended.
- To prepare school expenses for your child, it is more advantageous to take up the savings feature insurance that offers higher profits.
Accident insurance
- You can get compensation, if you are injured due to an accident during your daily life or leisure activities.
- Mostly, the accident insurance product is a guarantee feature insurance.
- It is advantageous to take up the comprehensive guarantee insurance to get compensation for the comprehensive accident, such as a house fire, cancer, or driver.
Medical expense insurance coverage
- For medical expense insurance coverage, the product with wide coverage is recommended, considering the insurance characteristics.
- It is recommended to select a product with a large coverage amount for cancer and stroke, which usually runs up high medical expenses.
Travel and leisure insurance
- Travel and leisure insurance has the very short insurance period, compared with the pension or savings insurance.
- Considering the characteristics of the insurance, it is recommended to select a product with wide coverage and low insurance premium. When traveling abroad, make sure that you can get help in the country you’re traveling
