What are the Benefits of Insurance?

Almost all families have insurance from various types of protection. The community follows insurance that is carried out by private and government companies. If we look at it, insurance companies are able to spread to various countries. This means that many parties get benefits in insurance.

With the growth of insurance companies, the public has the freedom to choose several types of insurance according to their needs. Not only young families who need insurance, but established families also need insurance. This shows benefits in insurance can cover various levels of the family.

Understanding Insurance to get Benefits in Insurance.

Insurance is a tool to reduce financial risk, by collecting exposure units in sufficient quantities, to make individual losses predictable. Then the predictable losses are borne equally by those who are members. (Mehr and Cammack).

Insurance is a social tool that combines individual risks into a cluster and uses funds donated by cluster members to pay losses.

In general, insurance has an understanding that is an agreement between the insurer (insurance company) with the insured (Participant insurance) which by accepting premiums from the insured, the insurer promises to pay a number of insurance due to loss, damage, loss of goods, and death of someone.

So in insurance involves 3 parties. The parties involved in insurance include:

First, the insured party who promises to pay premiums to the insurer at the same time or in installments. Second, the insurer who gives the promise will pay a sum of money to the insured at once or gradually if there is a third element. Third, an event that does not yet have clarity will occur.

Benefits in Insurance Obtained by the Parties Involved.

Individuals or companies benefit a lot from insurance. According to Riegel and Miller, we summarize some of the benefits in insurance, such as below.

Insurance causes or makes the community and companies safe. They feel safe for the risks that may arise in the future. By buying insurance, the Entrepreneurs will be calm.

With insurance, companies can maintain the level of efficiency of the company. This is because the company can reduce the risks so that the company is able to maintain the smooth running of its business.

Insurance companies withdraw fees by doing as much as possible. Insurance companies attract insurance costs must be fair according to the size of the risk insured.

In addition to the benefits in insurance that we have written before, the following are also benefits in insurance:

You Companies can use insurance as a basis for granting credit. Insurance can be a saving tool, for example in Unit Link Insurance, We can see insurance as a source of income (earning power).

Benefits of those involved in insurance.

Insurance companies as financial institutions certainly expect profits from their business. This portion of profit is to finance all of its activities. Likewise with the customers, they expect the insurance policy to receive benefits in insurance.

Following this we summarize the benefits of the insurance and the customer.

Benefits of Insurance:

a. Profits from premiums provided by customers.
b. Profit from equity participation in other companies.
c. Profit from interest from investments in securities.

Benefits of the Customer:

a. Avoid the risk of loss or loss.
b. Provide security.
c. Providing deposits that can be taken back at maturity.
d. Get a replacement due to damage or loss.
e. Obtain income in the future.

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