Invoice Requirements in Taiwan

For any insurance coverage to be sufficiently adequate, then it is necessary to purchase the policy beforehand. It is always beneficial to purchase all available insurance to prevent a disastrous financial situation in the event of a catastrophe. So, to select the right type of personal insurance an individual requires, a good understanding of insurance policy.

  1. Definition
  2. Obtaining Personal Insurance Policy
  3. Types of Insurance Policies


Personal insurance refers to any system that provides individuals the ability to shield themselves or their businesses from hardship in the event of a disaster. This type of protection is achieved by pooling together risks and paying periodic premiums, which can be paid out when injury, illness, loss of property, fire, death, or any disaster occurs. This type of protection is provided through the transfer of risk from individuals to insurance companies. Therefore, when a disaster occurs, a company without any form of insurance is likely to be in a quagmire. As such, it is not possible to get an insurance policy after the occurrence of a catastrophic event. Instead, appropriate insurance policies must be put in place before adversity occurs. During the lifespan of the insurance policy, the premium must be paid.

Premium is the sum of money paid periodically by an individual to an insurance company as agreed in the insurance policy or agreement between the two parties. The premium paid is pooled together with payments by other individuals with insurance policies. Underwriting is used to determine the probability of an individual requiring an insurance payout, which determines the premium rate. Successful insurance companies ensure that premium rates are always higher than possible payout amounts. Additionally, insurance policy coverage begins once a minimum amount of money is paid. This amount is referred to as the deductible. Lower deductibles usually attract higher premium rates, while higher deductibles attract lower premium rates. However, in particular circumstances such as preventive repair or pre-emptive healthcare, deductibles may not be paid.

Obtaining Personal Insurance Policy

An individual can get insurance coverage in several ways. Employees can get personnel insurance coverage via their employers. The standard type of policies in the form of benefits, which are offered by employers, includes life insurance, disability insurance, and health insurance. Different types of insurance policy packages may be offered to employers. The payment of premium is covered partially or entirely by the employer. Individuals can obtain an insurance policy independent of their employers.

All insurance policies cover a specific number of persons, properties, or items. Therefore, an individual may obtain a health insurance policy that covers himself and his entire family. If each of the spouses is insured at their respective jobs, each would be covered by their respective health insurance policies. Also, for different people to drive a single car, for instance, comprehensive vehicle insurance must be purchased, which covers all the drivers.

An insurance company may decide not to pay out the policy if an investigation proves that some form of illegal activity was done to get payment. Such illegal activity may include deliberate arson to get insurance money or murder to get cash out on life insurance. Also, certain circumstances may make an individual entirely ineligible to procure an insurance policy.

Types of Insurance Policies

Over the years, several types of insurance policies have been developed to cover people from different types of risks, which cut across personal and business activities.  Different people require different insurance policies. Individuals with exceptional circumstances may require particular types of insurance policies to prevent loss of money and potential liability. The type of personal insurance includes the following.

1. Health Insurance

This type of insurance is critical as it covers the cost of healthcare that is given to the beneficiary. Employers usually cover the health insurance of employees at subsidized rates. Those without such type of health insurance must pay their insurance premiums. In general, the degree of coverage of the insurance depends on the policy package selected. Mostly, the higher the premium paid, the greater the degree of coverage.

2. Vehicle Insurance

In most counties, vehicle insurance is mandatory by law. Therefore, driving without insurance can lead to fines or prosecution. Each jurisdiction has different requirements for different vehicles and drivers. A liability insurance package covers injury to people and damage to their vehicles. However, this type of policy those not cover damage to the owner’s property. For better coverage, other jurisdictions require additional forms of vehicle insurance policies.

3. Flood Insurance

Flood insurance is mostly purchased from agencies such as the National Flood Insurance Program. In America, this agency subsidizes the purchase of flood insurance. Insurance companies that are approved by the agency are the only ones that can cover flood insurance. However, individual purchase of flood insurance is not common at the moment.

4. Disability Insurance

This type of insurance is meant to cover an individual in the event of a physical or mental injury that may lead to temporary or permanent disability. The employer mostly obtains disability insurance through their employees. The premium paid may be equal to a large percentage of basic earnings. As such, several employees tend not to subscribe to such a policy because of the price of the premium.

5. Home Insurance

Home insurance policies are divided into property and liability coverage. It covers destruction to property (e.g., fire outbreak). It also protects against liability in the event of injury to people within a property.

6. Life Insurance

This type of insurance policy pays out money to a beneficiary or beneficiaries in the event of the death of the person that takes out the policy. Individuals and organizations can be made as beneficiaries of the insurance policy. There are also different types of life insurance policies, which depend on the rate of premium.

7. Excess Liability Insurance

The excess liability insurance or umbrella insurance is used to provide coverage against all liability that is covered by other policies. This type of insurance may be more affordable and provides a higher level of cover than other types of insurance policies. In most cases, the insurance company would require the smallest degree of coverage for other policies. The excess liability insurance is suitable for those who require a comprehensive insurance coverage policy.


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