Personal Finance

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Personal finance



Defining Insurance1

Types of Insurance1

Home Insurance1

Health insurance1

Motor Insurance2

Travel Insurance2

Credit Insurance2

Business Insurance2

General Insurance2

Comparison of Insurance Policies - UK, USA and Malaysia3

Life Insurance Policies in UK3

Life Insurance Policies in USA3

Life Insurance Policies in Malaysia3

Nature of Uncertainties, Risks, and Probability - Comparison4

Death Risk4

Theft Risk5

Damage Risk5

Uncertainties and Decisions6

Crime Rate6

Global Financial Crises6

Economic Growth6

Human uncertainty7

Examples of Uncertainties and Decisions7



Personal finance


Risks and uncertainties are the part of human's life that in turn increases benefit of life insurance companies. People in the countries become sick, ill or needs surgery, so they need a large amount of money. Life insurance, also known as life assurance, is use for covering risk relates to a common person's life. Life insurance is also used for protecting common people from the danger relate to their daily life. This shows that insurance is the mechanism, which transfers the financial risk of common people and provides assistance to them.

This study compares personal life insurance policies of three countries, which are United Kingdom, Malaysia and United States of America. Furthermore, this study also covers the nature of uncertainties and risk relates to the common people and benefit of personal life insurance policies.


Defining Insurance

Organizations and people use insurance policies in order to increase payback ratio. For example, if a person face the heart attack problem and requires heart surgery. In this critical situation, person might not have the large amount. But, if a person invests in the insurance policies then financial instability might be reduce. Same is the case with a person who faces fire incident, or any other daily critical situations.

In order to get financial assistance at the time of incident, person must have to pay the premium amount to the insurance companies annually. Low premium will be converted to high premium amount, and the person will get high payback ratio at the time of critical situation. As risk is uncertain in the life, so fix payback amount of insurance help people in uncertainties (Cummins & Weiss, 2013, pp. 850).

Types of Insurance

There are multiple types of insurance, which are provided by the insurance companies. However, some important insurance types are health insurance, home insurance, property insurance, travel insurance, general insurance, mortgage insurance, credit insurance, business insurance, income insurance and motor insurance.

Home Insurance

Home insurance, also known as hazard insurance, is the type of insurance, which is use to cover the insurance of property. It is the type of insurance that decreases uncertainty rate relates to the property. These uncertainties are flood risk, security risk, theft risk (Jaffee et. al, 2010, pp. 861).

Health insurance

Health insurance is the type of risk, which covers uncertainties relate to the health of common people. This means that health insurance policies cover the risk and losses which comes from accident, disability, medical expenses, injury, sickness or ill (Schoen et. al, 2010, pp. 2334).

Motor Insurance

Motor insurance, auto insurance, or vehicle insurance, is the type of insurance, which covers insurance policies relate to trucks, cars and motorcycles. In case of any damage occurs to the vehicle or auto, insurance companies provide financial support (Kozak, ...