What is Insurance? What are Benefits and Purpose

What is Insurance and the Benefits

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

Type of Insurance

Basically, insurance is divided into two major classifications, namely life insurance and non life insurance. Non-life insurance is often referred to as general insurance.

Life insurance is insurance related to human or self. Typically, this insurance covers the risks associated with death, health and accidents.

For example, if a person has a traffic accident causing death or permanent disability. If he has life insurance, then he can transfer the losses from the accident that he experienced to the insurance company. Likewise if he is suffering from chronic pain and need expensive medical expenses.

and this Types of Insurance:

  1. Term life insurance (term life insurance)
  2. Life insurance for life (whole life)
  3. Dual life insurance (endowment)

However, there is a risk in insurance

  1. Customer wrongly choose the product
  2. The risk of breaking the promise
  3. The risk of bankruptcy insurance companies
  4. Insurance rejection

Benefits of insurance and basic guarantees

Everyone who wants to protect themselves or others against financial difficulties should consider insurance. This may include:

  • Protect the family after the death of a person from loss of income
  • Ensuring debt repayment after death
  • Includes contingent liabilities
  • Protects against the death of key employees or people in your business
  • Protect your business from business interruptions and loss of revenue
  • Protect yourself against unexpected health costs
  • Protect your home against theft, fire, flood and other hazards
  • Protect yourself against lawsuits
  • Protect yourself in terms of disability
  • Protects your car against theft or loss caused by accident.
  • And many more.

that’s some sense of insurance, Benefits and Purpose.¬†from now start insured.

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