What is Insurance and How does insurance work


In this article, we will talk about what is insurance and how does insurance work. Insurance covers home fires, Car accidents provides financial protection in the event of risks. It will cover your medical expenses. Insurance that can support your family when you die. The first thing to know is what insurance you are considering buying. Make sure the insurance you buy covers what you need.

Are there any unprotected points? What does it not protect? You need to know what the rules are. If you do not know, your claim may not be valid until you need insurance. Usually, the insurance is for one year, but make sure you ask how long the insurance will cover.

If you are satisfied with the coverage available, check the price of the insurance (premium). Compare with other insurance companies. Most insurance companies require you to pay the premium in one installment for one year. However, some insurance companies offer monthly or quarterly insurance coverage. Once every 3 months, We also accept installment payments such as every 6 months.

If you are lucky and have not received a claim during the warranty period, If you renew your insurance at the same insurance company, you can also get a discount as a non-compensation gift. If you are lucky and have not received a claim during the warranty period, If you renew your insurance at the same insurance company, you can also get a discount as a non-compensation gift.

Is there good customer service to help customers? You can also check this by contacting the insurance company by phone. Are the staff eager to help customers? Do you answer questions patiently? Is it easy to make phone calls when it is important?

How does insurance work?

Here are four steps you can take to begin the process of preparation for mediation. First of all, you have to choose what you want to protect. For example, house fire; Car accident for illness. The value of the insurance depends on the risk of losing what you want the insurance company to cover. A premium will be set.

You have to pay the insurance fee. This insurance will cover you for a certain period (usually up to one year). You can claim compensation if something happens to your protection within the stipulated period. The insurance company will review the claim and pay the agreed amount.

What can be insured for?

There are many types of insurance. You can insure against anything that could happen. These are:

  • Someone (for example, yourself, your spouse, your child).
  • Any property (e.g. house, car, phone).
  • Insurance for someone else or someone else’s property.

What kind of event can be insured for?

You can be insured for various events. For example Death of a person; Illness Injury for being in trouble. Fire damage to any property; Flooding; Losses; For theft. Someone who is not specific; Accidental destruction of something; Accidental death; In the event of an accident (for example, a car accident).

What insurance products are there?

Insurance products intended for individuals

  • Life insurance
  • Health insurance
  • Physical Injury Insurance
  • Snake Injury Insurance
  • Fire insurance
  • Comprehensive motor insurance
  • Motorcycle Insurance
  • Here are some common types of insurance:
  • Collective life insurance
  • Freight insurance
  • Cash security and remittance guarantee

How long does insurance cover?

Most insurance covers a period. Some types of insurance cover only one event (for example, 6 months, 1 year). (For example, travel insurance only applies to one trip.)

How much does an insurance policy cost?

The cost may vary depending on what you want to insure. Most likely, in the event of the highest cost, insurance costs may be higher.

Do I need insurance?

Some insurers are required by law to have. For example, if you own a car, you are legally required to have third-party liability insurance. Third-party liability insurance covers the damage to the community. Compensation for expenses. But will not compensate you for your car damage or personal injury.

Other types of insurance can help you decide whether to have insurance or not. It is not wrong to think of getting insurance if you have dependents. If you have insurance, you can be financially secure for those who depend on you when something unexpected happens.

What are life insurance and general insurance?

The Financial Supervision Department and the insurance companies have two main types of insurance:

  • Life insurance.
  • Non-life insurance (general insurance).

Life insurance is a life insurance policy. In the event of the death of the insured, only the beneficiary written on the insurance policy (on the insurance contract) will receive the premiums paid. Non-life insurance is a type of property insurance.

What is Assurance?

In some cases, insurance companies use the word “insurance” instead of the word “insurance.” For example, death. That’s why life insurance is called life insurance, just like. Different insurance companies have different terms for their different products. It’s called insurance. The key is to find out what is called insurance.

How can I get insurance?

Insurance company; Licensed Insurance Agent; You can buy insurance through licensed insurance agents. Some companies even insure their employees as a work benefit.

Which companies are doing insurance business?

Licensed insurance companies found in Myanmar. (What is Insurance and How does insurance work)

  • Myanmar Insurance (State Insurance Company)
  • AMI
  • Capital Life
  • CB Life
  • Global World
  • Grand Guardian
  • I-KBZ
  • Young Insurance

According to the rules, insurance companies’ insurance policies are almost identical, so it is not easy to choose the right insurance company. Which insurance company is better until you actually apply? It is difficult to decide what is bad. But here are some tips to help you choose the right insurance company.

Preference sharing is a form of giving a pre-agreed% amount. For example, you pay 10,000 Ks for one preference share, and if you get 10%, you always have to pay 10 Ks, which is always 1000 Ks. Bonds are like those who buy bonds from companies, like the creditors of those companies.

Bonds are convertible bonds and you can change the share from the bond at the specified time. Bond’s advantage is that if companies go bankrupt, bondholders get more money than their shareholders (What is and How does insurance work).