What is Insurance, its benefits and types?

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What is insurance, what are its benefits and what are its types? – Insurance, the term we often hear, and is already familiar in some circles of middle and upper class society, but for some people maybe when they hear the word insurance it may be foreign to their ears, or maybe they often hear about the word insurance but don’t understand what it means. it means.

Insurance is actually a form of risk management (management techniques related to risk) that can provide financial compensation for all unexpected things, such as death, loss, health, loss and other unexpected things, so that if things the above happens to you then you will get relief or compensation depending on the insurance.

According to wikipedia Insurance is a term used to refer to an action, system, or business where financial protection (or financial compensation) for life, property, health and so on is reimbursed from unforeseen events that can occur such as death, loss, damage or illness, which involves regular premium payments over a specified period of time in exchange for a policy that guarantees such protection.

In insurance there are also terms that you must understand, some of these terms include, premium, policy, deferred, deferred, claim and others, to understand these terms you can read the following article:

Insurance Benefits?
Indeed, many people for certain reasons prefer to have insurance, the main reason is that insurance companies can reduce their burden when unexpected things happen to them, they are willing to pay insurance premiums even though these events do not necessarily happen, but the guarantee insurance that makes every individual willing to have insurance.

When there is a loss to the insurance participant, the insurance company must be responsible for the loss, usually there is financial compensation to the insurance participant based on a certain agreement, for example the insurance participant joins the vehicle insurance membership, when the vehicle is stolen or damage occurs to the insured vehicle, the insurance company will bear the loss after the agreement. while the insurance participant has the obligation to pay a premium (monthly contribution to the insurance company with a certain amount)

For now, there are lots of insurance companies that you can try, you can choose the type of insurance, for example health insurance, which can relieve your expenses when you are sick, loss insurance can provide relief to you because it can be replaced by insurance companies and insurance companies. other insurance.

Know the types of insurance
Basically insurance is categorized into 3 major groups, namely loss insurance, loss insurance and life insurance, based on these categories insurance companies make insurance grouping policies more specifically and specifically according to the risks they will get. :

  1. Health insurance
    This insurance can be owned by each individual for himself or for others, health insurance is an insurance product that focuses on covering things related to a person’s health, for example insurance participants who are affected by illness, accident, illness and must be treated, then the cost of treatment will be borne by the insurance company based on the agreement.
  2. Vehicle Insurance
    Vehicle insurance is an insurance product that usually covers everything related to the risks that occur to the insurance participant’s vehicle, for example the insured vehicle crashes into someone else’s vehicle, if you already have vehicle insurance, the insurance company is obliged to pay for the loss.

Another case is when the vehicle is lost or damaged, the costs of the loss will be reimbursed by the insurance company in accordance with the agreement agreed between the two parties.

  1. Education Insurance
    This insurance is arguably the most popular at this time, this insurance product is a pretty good solution to guarantee education, for example parents who insure their children’s education, the premiums that must be paid by insurance participants are usually adjusted to the level of education that will be taken by the child.
  2. Life Insurance
    Life insurance is insurance that will provide financial benefits to a third party or a person or party appointed by the insurance participant after his death (heirs). and payment can only be made when the insured dies. but there are also some insurance companies that have a policy that funds can be claimed even though the insured has not died.

For example, a father buys life insurance for his family, especially for his wife and children, so that after the death of his wife and children, they still have a better life insurance.

Actually there are many types of insurance companies that you can try. but the 4 above are the most popular for now.

Thus the article about Knowing What is Insurance, its benefits and types?, may be useful.

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