Understanding Insurance, Types of Insurance and
Insurance Definition – Insurance is a form of risk control is carried out by means of redirecting/transfer of risk from one party to the other party, in this case, is insurance companies.
insurance or coverage is an agreement by which an insurer committing yourself to an insured, by receiving a premium, for the replacement of him due to a damage or loss of profits expected that may be sustained due to an event that is not necessarily “.
The notion that other insurance is a risk redirect of the first party to the other party. In redirects controlled by the rules of law and the introduction of principles and teachings that are universally embraced by the first party or another party.
In terms of Economics, insurance means a collection of funds that can be used to close or give compensation to people who suffered losses.
What are the benefits of insurance?
Besides as a form of control risk (financially), the insurance also has a variety of benefits are classified into: the primary function of the secondary functions, and additional functions.
The primary function of insurance is a diversion risk, fundraiser, and balanced premium. The function of secondary insurance is to stimulate business growth, prevent loss, loss control, have social benefits and as savings. While insurance is additional functionality as investment funds and invisible earnings.
Here are some Types of Insurance
- Life Insurance
One Types of Insurance is known to provide a financial profit on insured upon his death. A payment system for any type of life insurance. There are insurance companies that provide payment after death and more could allow the insured to claim the Fund before his death. Life insurance can be purchased for the benefit of ourselves and on behalf of the insured only or purchased for the benefit of a third person. Even life insurance also is known can be bought on the lives of others. As an illustration, suppose that a husband can buy life insurance that will provide benefits to him after the death of his wife. Parents can also insure yourself against the death of the child.
- Health Insurance
One type of insurance is also quite well known by the public. Health insurance is an insurance product that addresses the issue of the health of the insured due to an illness and bears the costs of the treatment process. Generally, the causes of sick insured which cost can be borne by the insurance company are injured, disabled, sick, until death due to an accident. Health insurance also is known can be bought for the benefit of the insured or the interests of a third person.
- Car Insurance
Vehicle insurance or car insurance which focuses on dependents of injury to other people or other people’s vehicles against damage caused by the insured. This insurance can also pay for loss or damage to an insured motor vehicle. Vehicle insurance is one of the general insurance products. This type of insurance it had become one of the booming
- Ownership of the home and property Insurance
As a valued asset valuable enough, usually the homeowner will protect themselves and his assets that could be either a home or personal property with home ownership and property insurance. This insurance provides protection against loss or damage that may occur on certain items of the personal property insured. This insurance also protects and provide relief when a home or other property insured experienced a disaster such as a fire.
- Insurance Education
This is the most popular insurance and a favorite of the policyholders. Insurance education is the best alternative solution and ensures a better life especially on child education assets. The cost of the premium payable for insured to the insurance companies varies according to a level of education who want to obtain later.
Understand the importance of the use of insurance education for children has now become something of concern parents. The high cost of education and other conditions that aggravate the economic effect on children’s education costs later. Realize that this obviously will weigh a parent, then often the parents are now choosing to have insurance education.
- Business Insurance
This insurance is protection against damage, loss, or a large number of losses that may occur in a person’s business. This insurance provides reimbursement of damage caused by fire, explosion, earthquake, lightning, flood, windstorm, hail, collision, to riot. The insurance company usually offers a range of benefits from the insurance business as a protection against employees as business assets, protection of investment and business, a comprehensive life insurance for all employees, and package protection health insurance for employees.
- The General insurance
The General insurance is protection against the risk of loss as well as loss of benefits and legal liability on third parties. This public insurance coverage to its short-term (usually about one year). General insurance can be classified into several types, among them:
- a) Social Insurance (social security).
This type of insurance is insurance that must be possessed by any person or population with the goal of everyone has a guarantee of the old days. Premium payment is done by force, one example by cutting off someone’s salary every month.
- b) Voluntary Insurance (Voluntary Insurance)
It is run by a voluntary insurance. Voluntary types of insurance can still be further divided into 2 classifications i.e. Government Insurance and Commercial Insurance. Government insurance is insurance that is run by the Government, while commercial insurance is insurance that is intended to provide protection to a person or family as well as companies from the risks that may arise due to unexpected events.
- Credit Insurance
Credit insurance is protection over the risk of the failure of the debtor to pay off a credit facility or loan cash as working capital, trade credit, and others. Associated closely with the service especially in the field of banking. Credit is a loan in the form of money given the bank or financial institution as a lender to the customers. Credit insurance aims to protect banks or other financial institutions of the possibility of not obtaining the credit back loaned to the customer and help provide security as well as of the briefing.
- Marine Insurance
This one special type of insurance exists in the field of marine functions to transport the cargo owners as well as ensure. The risk that may occur so that the formation of this insurance is the damage to the cargo, the ship’s damage, and injured passengers. Marine insurance or insurance of the Navy is the transfer of risk for either yourself or your provisioning using ocean freight services. This involves the use of insurance services of shipbuilding in the sending of the goods. Some of the factors that affect ocean freight insurance premium are insured goods, packaging of goods, the insured risks, transportation, and travel.
- Travel insurance
Overall, the function of the travel insurance is not far different from regular insurance functions as a form of protection to the customer with a short period of time i.e. during a buyers premium to travel up to return home. Benefits that will be gained from having a travel insurance among other things got protection and bearing of costs for accidents that befell the buyers premium, compensation for accidents, emergency medical expenses, dependent repatriation funerals, medical evacuation, to protection against default items that have the risk of lost or damaged.
such types of insurance that you can choose to protect you and your family