CHAPTER 3:

INSURANCE
BY MS. KAREN MARANGGA,
LPT
 • a thing providing protection against a possible eventuality.

What is • a financial safety net, helping you and your loved ones
recover after something bad happens — such as a fire, theft,
Insurance? lawsuit or car accident.
 • a financial product sold by insurance companies/government
to safeguard you and/or your property against the risk of loss,
What is damage or theft.

Insurance?
 • An insurance is a legal agreement between an insurer
(insurance company) and an insured (individual), in which an
Is Insurance insured receives financial protection from an insurer for the
losses he may suffer under specific circumstances.
legal?
 What is • An assurance against unforeseen and
unfortunate loss/circumstances.
Insurance?
 • Its aim is to reduce financial uncertainty and
WHY make accidental loss manageable.
INSURANC
E?
BENEFITS OF
INSURANCE:
Financial Safety for
Family.

Wealth Preservation
You must have insurance for
the below reasons:
Safety of Financial
Status.

Wealth Distribution

Wealth Creation Goals.

Insurance
Policy

• An insurance policy is a legal

contract between the insurance
company (the insurer) and the
person(s), business, or entity
being insured (the insured).
Types of Insurance
Policies

Homeowners Insurance Automobile

Insurance

Life Insurance Health Care and Disability

Insurance
Homeowners
Insurance
Homeowners insurance provides you
with financial protection in the event
of a disaster or accident involving
your home. Should include:
• Liability insurance- pays for
property damage and bodily injury
for visitors (third party injury).

• Comprehensive insurance- protects

the homeowners from a sudden loss
because of unforeseen
circumstances.
Automobile (Car)
Insurance
A contract between you and the
insurance company that protects you
against financial loss in the event of an
accident or theft. Should cover the
following:
• Liability- bodily injury and property
damage they cause to others.
• Collision- repay or replace the car
cause by collision with other car.
• Comprehensive- damage and loss
not caused by collision with another
car.
Life Insurance

This policy provides coverage for a

specific period. You buy life insurance to
ensure that your loved ones are
financially secure even when you are not
around. Two types of Life Insurance:
• Term Insurance
• Whole life insurance
Life Insurance
• Term Insurance
⚬ provides only death protection
which can be purchased for a
short period (or renewal).
⚬ The person must have a
beneficiary.
⚬ The monthly payment is called
PREMIUM.

• And some financial advisors,

discourage purchasing this type of
insurance because its less expensive
and therefore provides lower
commission for them.
Life Insurance
• Whole life Insurance
⚬ provides saving components
aside from death benefits.
⚬ life time insurance and if you
avail this type of insurance, your
money (cash value) will
increase each year (investment)
⚬ life insurance policies that are
meant to last until death and
have an investment aspect.
Health Care and
Disability Insurance

Disability Income Insurance Major medical

insurance
Provides the family with weekly or provides benefits for all types
monthly payments that replace the of medical expenses resulting
income of someone who is unable to from illness or injury. This type
work as a result of illness or injury. of insurance nearly pays all the
medical expenses.

Hospitalization Insurance
health insurance policy that covers payments for hospital stays,
outpatient medical treatment, surgery, or any hospital-related
activity that involves the insured's health.
What age is the best
to get insurance?

Typically, you get the best

rates in your 20s or 30s.
That's because an insurer is
taking on less risk when
insuring a young person in
good health. That said,
affordable and high-quality
coverage is available across
a variety of age ranges.
Questions?
Activity
• List down your life goals
• Will you consider having insurance?