There are many types of insurance. Better insured early, because each insurer has different advantages and disadvantages, choose which one is best for you. As one of the non-bank financial institutions, insurance known as a pretty good investment alternatives and minimize the risk of unexpected events.
Definition of insurance by web Financial Services Authority is an agreement between the provider of insurance services as the agency and the community that holds the policy and is known as the insured is required to pay a premium in order to provide compensation for the risk of loss, damage, death, and loss of expected profit , which may occur on unexpected events.
This term describes that any measures taken to provide protection against the threat of risk. Policyholders have an obligation to pay a premium to the insurance company, which in turn agreed to provide compensation and protection against future losses that might befall the policyholder for the insurance company.
When the policyholder or insured participants unfortunate and got the loss or damage that is listed in the contract, the insured is entitled to file an insurance claim. Recipients of this insurance is not only the insured who is named as policyholders of insurance companies but also others who are appointed directly by the insured.
Insurance grouped according to the focus and risk. Focus and risks that determine the size of uniformity in risk borne according to the type of policy. It will be used insurance companies to anticipate potential losses and setting premium rates offered in accordance with the type of insurance.
The following 6 types of insurance :
1. Life Insurance
This type of insurance is known to give a financial benefit to the insured for his death. The payment system for this type of life insurance also vary. There are insurance companies that provide payment after death and others can allow the insured to claim the funds before his death.
2. Health Insurance
This type of insurance is also quite famous. Health insurance comes to resolve health because the disease can be to pay for the care process. Generally, the disease that costs could be covered by insurance companies is an injury, disability, illness, and death due to accident.
3. Vehicle Insurance
Vehicle insurance is the most popular. This insurance function if there is damage or loss on your vehicle and insurance companies also bear when a car damaged by riots.
4. Home and Property Insurance
As the assets are considered quite valuable, typically the homeowner will protect themselves and their assets which can be either a home or personal property with home ownership and property insurance.
This insurance provides protection against loss or damage that may occur in certain items of personal property of the insured. This insurance is to protect and provide
relief when a home or other insured property suffered disasters such as fires.
5. Education Insurance
This is the most favorite insurance for policyholders. Insurance education is the best alternative and a solution guaranteeing a better life, especially in children’s education assets. The cost of premiums to be paid the insured to the insurance company varies according to the level of education they want.
Understanding the importance of the use of insurance for the children’s education has become something of concern to older people. The high cost of education and other
conditions that can worsen the economy.
6. Business Insurance
This insurance is a service of protection against damage, loss, or the loss of large amounts of which may occur in one’s business. This insurance provides reimbursement of damages caused by fire, explosion, earthquake, lightning, floods, hurricanes, rain, collision, until the violence.
Insurance companies usually offer a wide range of business insurance benefits such as protection against an employee as a business asset, protection of investment and business, whole life insurance for all employees, to package health insurance coverage for employees.