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What is Life Insurance?

Life insurance is an agreement between you and a life insurance company, or what is known as an insurance policy. You pay premiums for the policy on a regular basis, and in return, the life insurance company promises to pay a guaranteed sum of money, known as sum assured, to your designated beneficiaries if you pass away due to an accident or total permanently disable critical illness while the policy is active. This payout, known as a death benefit or total and permanent benefit, can help your family manage immediate expenses and adjust to life without your income.   

Some life insurance plans also include a savings feature, allowing you to build up a lump sum over time. If no claims are made during the coverage period, you will receive all your premiums back. This makes it a great way to protect your loved ones while also planning ahead for major goals like buying a home, starting a business, or saving for retirement.

What is Health Insurance? 

Medical expenses can come unexpectedly, and they can add up quickly. Depending on the plan, coverage can include both outpatient and inpatient medical expenses ranging from a simple clinic visit or minor hospital bill to major costs for surgeries or medical procedures. With health insurance, you won’t need to worry as much about how to pay for these costs. Instead, you can focus on getting better, knowing that your plan is there to support you financially.

What Types of Life Insurance Plans are Available?

Insurers typically offer the following types of life insurance plans.

Term Insurance:

This is straightforward protection for a specific period (a "term"). If the insured suffers a critical illness during the coverage period, they will receive a payout. If the insured passes away during the coverage period, the beneficiaries receive a payout. 

Insurance and Savings:

Known as endowment insurance, this type combines life insurance protection with a savings component, as described earlier. This is an ideal option for saving for specific future goals like buying a house or funding retirement, all while being protected. 

It is important to note that insurers offer flexibility with their life insurance plans, including adding additional coverage for critical illness and death due to an accident. For example, at Prudential Myanmar, we offer the PRUFlexiprotect product series which empowers customers to customise their protection plan. Benefits can be added such as Critical Illness coverage for 20 illnesses including cancer and major organ transplant, or the Accidental Death Benefit which provides a payout in the case of death due to an accident.

There are also life insurance plans with a savings component to help you save for your child's future education, such as PRUScholar. With PRUScholar, you can secure your child’s education until graduation and ensure their future with confidence. This life insurance plan offers two options — the Basic Plan and the Double Benefit Plan. Under the Double Benefit Plan, if the insured passes away during the policy term, the plan provides 100% of the sum assured annually for the child’s education as originally intended. In addition, another 100% of the sum assured will be paid out immediately upon the insured’s death.

What Types of Health Insurance Plans are Available?

Health insurance plans are becoming more varied and flexible to meet different needs. Most plans provide hospitalisation coverage, which takes care of costs like surgery, overnight stays, and inpatient treatments. Many also include outpatient coverage, covering clinic visits, diagnostic tests, and medications. Some health insurance policies may also include a death benefit, offering additional financial support to your family if the unexpected happens. 

There are also critical illness plans available. These provide a lump sum payout if you're diagnosed with a serious health condition, either from a wide list of illnesses or for a specific one, such as cancer. Prudential Myanmar’s PRUHealth is designed to offer health coverage with options you can tailor to your needs, whether you're seeking basic protection or more comprehensive care.

Ready to Explore Your Options?

Now that we've covered the basics of life and health insurance, we hope you will take the time to learn more about the various plans available.

If you’re unsure which plan is right for you, you can start by visiting the Prudential Myanmar Website or you can schedule a free consultation with one of our Prudential Myanmar Sales Representative by calling our hotline (+959770110010). Our Prudential Myanmar Sales Representative can assess your needs, discuss your budget, and recommend an insurance plan that fits your current situation. They can also provide resources and answer any questions you may have.

Financial planning is a journey, and the first step doesn't need to be a big one. Even setting aside a small amount once or twice a year for a life or health insurance plan can make a meaningful difference. With time, small steps turn into strong foundations. And with the right insurance plan, you're not just saving money, you’re building peace of mind and long-term protection for yourself and your loved ones.

Professional advice

Choosing the right insurance policy can be complex, so professional guidance can be a big help. Don’t hesitate to consult a qualified insurance agent or financial advisor to navigate the available options. Professional advice can help align your coverage with your unique needs and, thus, ensure a tailored and effective life insurance plan.

References

• Life Insurance Association Singapore (LIA). Types of Life Insurance. Available at www.lia.org.sg
• Monetary Authority of Singapore (MAS). Consumer Guide: Buying Life Insurance. Accessed 2024.