Functions and benefits of Insurance
There are some benefits if we follow the insurance program, among which are the following:
1. Tools or Infrastructure to save
Saving infrastructure means that the amount you are insured has cash value and can be taken back, these include certain types of insurance such as whole life or endowment, there kinds of insurance products which are deliberately combined with investments, that is called unitlink.
2. Provide protection or Security.
By having an insurance policy, the insured will be spared from possibleincidence risk losses later in the day and feel safe and calm his soul because the insured object has been dijaminan by the insurer.
3. Assignment of costs and benefits are More Justly.
The greater the risk of losses arising then the greater the premium coverage from the insurer.
4. Provide a level of certainty.
Is the main benefit of insurance because they are basically trying to reduce an uncertain consequences of an adverse circumstance, which has been predicted beforehand so the cost of these losses to be definitely or relatively more for sure.
5. Help improve Productivity for insured Businesses
The insured who would invest in a specific line of business (High Risk Business) when a portion of the investment risk can be covered by insurance to reduce the risk that may occur at a later date.
6. Credit Guarantee
Insurance policies can be used to guarantee loans, usually only to life insurance and very selective to certain types of credit and bank.
The types of Risks that may be Insured
In this life is a risk we cannot avoid, but can be minimised by reducingthe risk or move to another party.
But not all risks can be insured, the risks can be insured should meet the following characteristics:
Losses are definitely (definitive), such as death, sickness, disability, and old age, including conditions that can be identified, such as the building crumbled, tenggelammnya ship, or the fall of airplanes.
Losses occur because of accidental factors, such as the critical final stages of disease, accidents, or natural disasters.
Losses are convincing, as someone who is no longer able to work because of a work accident, the engine doesn't work anymore because of the heavily damaged.
The insured object can be assessed and converted with value for money.
The risks that occur must be natural, happen because of accidental and was not planned in advance.
The risk of that happening don't violate the public interest.
Insurance premiums assessed value is quite reasonable.
The party filing the insurance should have interests that can be insured.
