Module 14: Personal finance – insurance

Insurance protects the plan from the events that would otherwise break it: an illness, an accident, an early death. This module explains the main kinds of cover and what to check before buying.

01Why insure first

One large unplanned expense can undo years of saving. Insurance moves that risk to an insurer for a known premium.

02Term life insurance

Pure life cover for a set term, paying the family if the insured dies. It gives the most cover for the premium because it has no savings element.

03How much life cover

Enough to replace years of income and clear debts for the people who depend on you. The number comes from your own situation, not a rule of thumb alone.

04Insurance mixed with investment

Endowment and unit-linked plans combine cover and saving. Their costs and returns deserve a careful comparison with buying term cover and investing separately.

05Health insurance

Covers hospital expenses. Sum insured, room-rent limits, waiting periods, co-payment and the network of hospitals decide how useful a policy really is.

06Motor and home insurance

Third-party motor cover is required by law; own-damage cover is optional. Home insurance covers the structure and contents against fire, theft and natural events.

07Reading the policy

Exclusions, claim process, renewal terms and the insurer's claim settlement record. The fine print decides what a policy pays.

08Where this leads

A1Stock does not sell or recommend insurance; this module explains how to read it.