Basics of Life and Health Insurance

Insurance is a way of transferring financial risk to an insurer in exchange for a premium. In return, the insurer agrees to pay out under specific, defined circumstances set out in the policy document. Understanding a few basic terms can help you have a more informed conversation before choosing any policy.

Life insurance, in brief

Life insurance is generally intended to provide financial protection to your family or dependants in the event of your death during the policy term, or in some product types, to provide savings or maturity benefits. Types of life insurance products, premiums, sum assured, and terms vary by insurer and product — always review the specific policy document.

Health insurance, in brief

Health insurance generally helps cover eligible medical expenses, subject to the policy's sum insured, coverage terms, exclusions, and any waiting periods. What is and is not covered varies significantly between policies and insurers.

Terms worth understanding before you buy

• Premium — the amount you pay, and how often
• Sum assured / sum insured — the maximum benefit amount
• Exclusions — specific situations or conditions not covered
• Waiting period — time before certain benefits become claimable
• Claim process — how and when a claim is made and assessed

Insurance products are subject to insurer terms, underwriting, exclusions, waiting periods, and applicable regulation. Policy issuance and claim decisions are made by the insurer, not by Steady Path. See our Insurance page for the current status of licence verification.