Insurance
Insurance is a contract in which you pay a premium and the insurer agrees to pay a defined amount, or cover specified losses, if a covered event happens. What is covered and what is excluded is written in the policy document, so reading it matters.
Updated: · For education only. Not investment advice.
Guides in this section
- What is term insurance?→
- Insurance principlesComing soon
- Waiting periodsComing soon
- Exclusions and disclosuresComing soon
- Claim proceduresComing soon
- Policy reading exercisesComing soon
Frequently asked questions
What is the difference between term and health insurance?
Term insurance pays a lump sum to your nominee if the insured person dies during the policy term. Health insurance covers medical expenses, such as hospitalisation costs, as per the policy terms.
What are waiting periods and exclusions?
A waiting period is a time after buying a policy during which some claims are not payable, such as pre-existing conditions in health insurance. Exclusions are situations the policy does not cover. Both are stated in the policy wording.
What is the difference between premium and sum insured?
The premium is the amount you pay to keep the policy active. The sum insured (or sum assured) is the maximum amount the insurer will pay under the policy.
This page is general education. It does not recommend any policy or insurer.