How to Understand Insurance Easy

Everyone wants to live safely and comfortably. In the modern world almost everything requires money, comfort and security can only be obtained if we have enough money. Money is like oxygen modern life. Without oxygen, humans can not live, even though the purpose of life is not to inhale oxygen. So it is with money. Without money, it is very difficult to live, despite the obvious purpose of life is not looking for money.

However, our lives are filled with uncertainty. The fate of human beings can not be predicted. There is a disease, disaster, disasters, accidents, even death can occur at any time, grabbing everything we have. Poor can not be denied, fortunately also not always be achieved. Humans are not helpless against the provisions of fate must be endured. However, as intelligent beings, humans keep trying to minimize the losses suffered because of the misfortunes that.

Insurance is the finding of human genius to get around the misfortunes of life. With insurance, human-bear allied to each other if one of those affected. Death may snatch a husband / wife who we love, the fire may devour our valuables, but at least financially we do not have to languish because of it.

In general, there are two types of insurance that is known today: general insurance / loss and life insurance. General insurance includes coverage for disasters of all things, such as fire, damage, loss / theft, flood, falling (aircraft) and sink (ships). Life insurance coverage to cover all the disasters that occur in humans, such as death, sickness, disability and unproductive.
This article is specifically restrict discussion on life insurance.
Life insurance is a business worth millions of dollars. In the year 2009, total new premium (new business) who collected the insurance industry reached nearly 90 trillion. When combined with the premiums of the previous business (renewal) the total velocity of money in the insurance industry reached hundreds of trillions of rupiah.


Easily, there are three risks covered by insurance:
• Death is too quick
• Life is too long
• Illness or disability

Dead Too Fast

Sudden deaths of people who are still productive age will cause misfortune to the family left behind. A husband or father beginning of each month to bring spending money necessities of life suddenly no more. A child whose livelihood depended his parents, who send money every month to them in the village, is now gone. Children need schools, parents need to strut life. They will be very helpful with insurance benefits.
How much compensation is enough? Insurance companies generally calculate the ideal amount of welfare money is if the money was deposited into the bank entirely, just from the interest alone is enough to cover the needs of everyday life with the same lifestyle. Thus, the breadwinner's death is not cut off the flow of fortune that has been accepted.
Program of the most basic life insurance is term insurance in which the coverage period and the period of paying premiums only valid for a certain period-usually one year-such as car insurance or fire must be renewed every year. Another popular program is the whole life insurance, and unit-linked endowment.

Living Too Long

Yes, life is too long is also the "misfortune" financially. If we live to the age of 70 years, for example, means there is a period of 15 years from the last day worked to death. That is a pretty long period. In those days we no longer productive and make money but needs still must be satisfied. From which source? In our culture, many of which rely on her children at the time of retirement. There is also a living from savings or investments. Compared to both pension funds from financial institutions / insurance is a source that is ideal because it does not become a burden and child survival is more assured flow of funds.

The insurance company issued a variety of products that essentially provide the funds at age penisun. The form can be worth the savings insurance, annuities, or retirement savings. For employees of companies, pension funds are usually managed by a group of insurers that premiums are paid in part or entirely by the employer.

Pain or Disability

Like a machine, our bodies often must go "garage" because of impaired function, strike or overhaul. The cost of the machine does not care a bit. On the other hand, during the treatment process, machinery used in production we can not earn a fortune so the process is lost. This is a double misfortune.

Functioning health and disability insurance cover the loss of two of the above, namely to pay the cost of care and replace lost income during or after the treatment. Health insurance cover health care costs that are generally divided into two classifications: outpatient and inpatient care. Bear the cost of insurance is usually outpatient group, which must be sponsored by one company or organization. You can not buy insurance on their own outpatient. This is because the complexity of administration which must be executed if the insurance company must provide outpatient individual insurance.

Such as life insurance, disability insurance is indemnity compensation that is given the score was set, unlike health insurance is replacement cost. This insurance is provided to persons with disabilities and their families could live like the previous conditions.
There are two types of defects that occur in humans, which is defective because of disease (such as stroke) or by accident. There are insurers who bear one type, there are both. There are only endure if the total disability (can not work at all), there are also bear when his disability only result we can not work in the profession before.

In addition to replacement costs, because during recovery and rehabilitation does not have the income that goes to the family of the sick, the insurance also provides a replacement income. One is known as hospital cash plan, where for hospitalized patients get a "sickness" which is calculated per day of care. For people with disabilities, there are also programs a monthly allowance during the rehabilitation and / or afterwards (known as the LTD / Long Term Disability benefits).

Life insurance has become very complex. The products offered are many and can include various combinations of benefits that are very diverse. One insurance company alone could remove a dozen or dozens of insurance products as a combination of optional benefits. We can be confused by the choices.

In the end, we ourselves are most know our needs. What is clear, when you and your family insurance not currently protected, get to see insurance products sold out there. Choose which best suit your abilities. Use the articles in insurance solution as your guide.