How well do you understand insurance?
In today’s fast-changing world, staying protected is more important than ever. As our daily needs and way of living evolves, so to do the ways in which insurance can help us stay protected from any unforeseen circumstances. For many young people though, insurance is something of an unknown – so what exactly is it, and how does it work? Let’s break it down.
There are two types of insurance
First things first. Insurance comes in two different forms: general insurance and life insurance. General insurance is a form of protection that covers your daily activities, including areas like health, property and travel. Life insurance, on the other hand, is a form of protection that covers your life risk of an individual in the long term.
Got it. How much do I have to pay for insurance? And how do i get paid when I make a claim?
As you might imagine, the amount of money you pay for an insurance policy (which is called the premium) is different for each type of cover. For general insurance, the premium is paid in a one-off lump sum; for life insurance, you pay in regular instalments.
For general insurance, If you need to make a claim, if you’ve purchased general insurance, only your losses will be reimbursed. Life insurance gets a little more complicated – here, the insurable amount is paid either on the occurrence of the event or upon maturity of the policy. Maturity essentially means that if your policy is for a term of 25 years, you will get a pay-out after these 25 years. This also comes in a lump sum.
Insurance in Hong Kong
Insurance can be important across all aspects of life. Currently, in Hong Kong, the major types of general insurance are insurance against damage to property, insurance against personal injury, insurance against public liability, travel package insurance, and home package insurance.
As Hong Kong develops into a world-leading Smart City, Avo foresees a need for ground-breaking insurance products and services that resonate with the growing needs of our quickly evolving and digital world. In addition to innovative new insurance platforms, consumer-centric plans that don’t break the bank are also on their way. By providing modularized and flexible plans that could not only best fit customer needs, but also providing instant risk solutions to all walks of lives, Avo is excited to be at the forefront of the virtual insurance revolution.