Insurance in Our Lives

Development of Insurance in various countries are very fast, like insurance in the U.S. and the developed countries in the Japanese insurance, insurance is very necessary purpose for each human being, associated with online businesses also need insurance, so if we need an insurance for your blog or website that we build , before you decide to register for insurance, I try to define what is insurance. Insurance or Liability is an agreement between two or more parties, by which the insurer to the insured is bound to accept the premium, to provide reimbursement to the insured for loss, damage or loss of expected benefits, or legal liability to third parties that may be suffered by the insured , which arises from an event that is uncertain, or to provide a payment based on a person dies or lives insured.

Simply put, you can transfer the risk of loss you might encounter on the insurance company to pay a sum of money (premium). The benefits gained include:

1. Transferring Risk

To individuals and companies can move the risk to the insurance company to pay the premium is relatively small when compared to losses that may occur.

2. Practical

You will automatically be required to set aside funds to pay the premium, it is very beneficial especially for those who lack discipline.

3. Able to provide funds immediately

When you are sick and need medical treatment costs are considerable, sedanngkan you do not have enough cash, then you do not have to worry because they have health insurance. Some or all medical expenses will be paid by the company, according to the agreement stated in the policy.

4. Can serve as a savings

These benefits are usually there on a life insurance. Simply put, the premium you pay is you get back if you cancel the policy or is due.

5. Can be combined with investment

We have a combination of insurance products and mutual funds known as the link unit. In short, with the unit-linked products, some of the premium you pay will be allocated for investment. Regarding the comparison, usually depending on the insured's decision.

However, there are some weaknesses that are owned as follows:

1. Premiums will burn if the claim does not occur until the timeout period. This usually makes lazy to join. Therefore, back to the main purpose of buying insurance, the risk transfer.Customer's risk of loss transferred to the company and rewarded with a sense of security, with the premiums paid. So, if the maturity date, the money you pay will not be back. Because at that time, you actually have to buy protection.
   
2. Scope of Risk Management Limited. Potential losses incurred insurance companies are limited to the risk that we can measure economic value. He also only pay when you experience losses due to events listed in the policy.

If so, do we need insurance? Of course each individual has different needs. There is no single effective for all people. To determine whether you need protection or not, evaluate your situation re:

Protecting yourself and your family from financial risk due to unforeseen events. If you have a great wealth and very liquid for use in an emergency, the insurance is not too necessary.

Having a specific goal that can be met by insurance, such as saving for retirement or preparing for children's education expenses.

Minimize your losses against things that might happen. If you are prone to risk or want security and precaution, according to your insurance, as is often sick or high risk of accidents.

From the above description if you will follow the insurance, I think we all need insurance and determine from now to take out insurance for our business activities, and life insurance.