Life is risky and that’s why insurance comes into being
Life is risky and that’s why insurance comes into being. On the market there are many types of insurance, first you can start with the following basic information.
First, why do people want to buy insurance? Many people believe that risks are everywhere from the time we wake up, leaving the house until we return at night. Every day, we face unpredictable risks. Preventing those risks is what we can do by buying a health insurance plan for ourselves.
What is insurance and how does it work?
Insurance, simply understood as a form of risk management, is primarily used to protect yourself or property from the risk of accidental, unforeseen damage. When you buy insurance, you transfer the cost of a possible loss to the insurance company in exchange for a fee, called a premium. For this payment, the insurance company (company) promises to compensate you in case of contractual losses.
Premiums will be paid later according to the terms of the policy. Details of the conditions and circumstances under which the insured will be financially compensated and the time will be committed in the insurance contract.
What are the different types of insurance?
There are many types of insurance, each of which compensates for different losses depending on each person’s needs. A single policy may include one or more risks involved, depending on the insurance provider you choose.
Health insurance covers medical treatment costs. Basically, when you buy health insurance, the insurer will pay for a part or all of the cost of medical examination and treatment as well as the cost of buying medical treatment. How much you are insured depends on the value of the insurance package you choose.
This is the type of insurance that most people choose to invest because of the higher medical costs. Even the simple tests are quite expensive and health insurance will work when you have health risks or are injured by accident.
Life insurance provides financial benefits for your loved ones (such as parents, children, etc.) who can live off the money if you die. This insurance policy usually allows buyers the right to pay in lump sum or annually.
If you have a car or any expensive car, you may need to buy insurance for it. This helps to protect you from financial losses in the event of a car-related accident. These things can happen unexpectedly and unforeseen. Therefore, you need to be prepared for it, even if you are a careful driver.
In addition to accidents, car insurance will also be responsible if your vehicle is stolen or damaged.
Travel insurance is a policy for traveling abroad. Travel insurance covers travel risks such as delays, cancellations or includes loss of documents, property and health on your journey. Travel insurance is usually applied for trips, is valid for the period of travel that you declare and is often considered a “safety ticket” to prevent health risks, travel, luggage, paper The flyer is even life when you travel or travel abroad.
Property insurance is a wide variety of types. Basically, it is a form of protection of your property against risks, such as fire, theft, or damage caused by natural disasters (earthquakes, storms, floods).
Common property insurance can include: housing insurance, insurance of other valuable assets such as diamond rings.