-->

What is Insurance? All you need to know about

Insurance】From the existence of risk.
You must have heard the words "unpredictable situation, people have disasters and good fortune" and "preparing for a rainy day"!!


In our daily life, we often encounter unpredictable accidents and natural disasters, such as theft and car accident. , such as earthquakes, floods, accidents, and natural disasters, these uncertain events, we call them risks.

Insurance: Definition and Types

The so-called insurance means that the proposer pays the insurance premium to the insurer according to the contract, and the insurer is responsible for paying the insurance money for the loss caused by the insured accident stipulated in the contract.

Exploring its essence, insurance is a social arrangement, in which people facing risks are organized through insurers to collectively undertake possible risks. When the insured suffers a loss, they can get compensation from the insurance money.


In other words, one person's loss is shared by everyone, that is, "everyone is for me, I am for everyone", it can be seen that insurance is essentially a mutual aid behavior. 

Main work of insurance

Insurance is actually a kind of preparation: When you are healthy, prepare when you are sick, when you are young, prepare when you are old, when you can, prepare when you are not, and that's it. 

Because anyone, no matter how powerful he is, there are three things in his life that cannot be guaranteed:

  • There is no guarantee of eternal health
  • No guarantee that you will always be rich
  • There is no guarantee that you will always be able to take care of your family.

Just like a car needs a spare tire, a house needs a fire extinguisher, and a ship needs a lifebuoy. In the face of these risks, insurance or savings are a management method for people to cope with future uncertain risks, and the purpose is to ensure normal life in the future.
The difference is that saving is to keep the risk to yourself, relying on personal accumulation to deal with future risks, it does not need any cost, but it may also fall into the dilemma of insufficient protection.


Insurance is a method of transferring the risks faced, relying on collective financial resources to deal with losses caused by risks, and providing sufficient protection. But at the same time, insurance has to pay a certain price, namely the premium.

Types Of Insurance

Types Of Insurances Definitions
Life Insurance Life insurance allows you to support your old age, depending on the disabled, have fun in life, and give away at the end
Medical Insurance An intimate umbrella for you to resist the rising medical costs
Cancer prevention Risk instilling the caring power of safe treatment
Injury insurance, travel safely, travel with peace of mind
Investment Insurance Take into account both investment and protection, and tailor-made personal plans for a wonderful life
Li-Variant Insurance The most cost-effective preservation and savings, high-quality life without worry

Types of Property Insurance:

Property insurance   Definitions
Motorcycle compulsory insurance After being guaranteed, cycling is safe and secure  
Locomotive driver injury insurance Injury insurance is enough to have locomotive compulsory insurance? as the motorcycle rider, you/you should also buy your own protection!!  
Compulsory auto insurance (including any insurance) Airbags for a better life  
Travel safety insurance The necessary guarantee to accompany you on your travels with peace of mind  
Fire and earthquake insurance Preserve your precious assets and leave you with no worries  

Reminders Before Applying for Insurance

Step1: Ponder do you really need insurance? Or human pressure?

Not everyone needs it, and the insurance content is different, so you must really understand the insurance coverage and whether it is related to your own risk.

Step2: Live within your means Don't buy more insurance than you can afford.

It is recommended that the premium budget should not exceed 10% of the income, so as not to cause an excessive burden, resulting in the inability to pay premiums in the future.

Step3: Plan for different guarantees for different stages.

After understanding the needs, plan different guarantees for different stages.

Step4: Choose a good insurance company

  1. Insurance companies sell intangible commodities, and insurance is a long-term guarantee. Therefore, it is very important to choose a good insurance company. An insurance company's solvency, basic services, quality of after-sales services, additional services, reputation, business The situation is the point of reference.
  2. Secondly, in order to choose a good salesperson or financial specialist, a good insurance seller will not sell products blindly.
  3. Finally, choose the insurance product that suits you, discuss with the salesman repeatedly, and understand your needs and abilities, until you find the insurance product that best meets your needs.

Frequently Asked Questions:

Ques: Do I still need insurance if I have National Health Insurance?

Ans: The National Health Insurance is social insurance. It is based on the principle of fair care for all citizens. It only provides basic medical insurance, and there are still some items that are not paid, Medical insurance covers expenses other than health insurance when you are sick, such as medical expenses:

  • Ward fee difference
  • meal cost
  • transportation
  • Registration fee
  • supporting document fee
  • special care fee

Ques: I already bought insurance before, do I need to buy it now?

Ans: An individual's family responsibilities change with the stage of life. To ensure that the insurance you have is sufficient to cover the major risks of the individual and the family, you should review the policy regularly or when the family situation changes.

Ques: Which insurance should I buy first?

Ans: Guaranteed insurance is preferred: The main function of insurance is protection, so when choosing, you should give priority to sufficient protection content, and other types of insurance products can be purchased after sufficient financial resources.




Read also-