Insurance (insurance, assurance) Definition and Types
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| Insurance (insurance, assurance): Definition and Types |
Understanding Insurance
Understanding insurance in terms of economic understanding is insurance is a financial institution because through insurance can raise a large fund, which can be used to finance the development in addition to benefiting people who participate in the insurance business, because actually insurance aims to provide protection (protection) for financial losses (financial loss) caused by unforeseen events.
Definition of Insurance "Insurance or Coverage is an agreement between two or more parties, by which the insurer binds itself to the insured by receiving insurance premiums, to provide compensation to the insured due to loss, damage or loss of expected profits, or legal liability to third parties who it may be suffered by the insured, arising from an uncertain event, or to provide a payment based on the death or life of an insured person.
Kinds of Insurance
Insurance can be divided into several types, including:
The two main branches of freight insurance, namely:
1. Sea Freight Insurance.
2. Land Transportation Insurance.
Fire insurance is insurance that aims to protect against fire hazards.
Credit Insurance, Types of credit insurance, Namely:
l. Accounts Receivable Insurance.
2. Deposit Insurance.
3. Loan Credit Insurance.
4. Bond Insurance.
5. International business warranty insurance.
6. Domestic Merchandise Credit Insurance.
Health Insurance, the purpose of health insurance is to pay hospital fees
medication and replace the insured's loss of income due to injury due to an accident or illness.
Social Insurance is a tool for collecting risk by transferring it to an organization which is usually a government organization, which is required by law to provide financial benefits or services to or on behalf of the insured at a time when certain losses occur
predetermined.
Liability Insurance.
Liability insurance is insurance to protect the insured against losses arising from a third party claim due to the insured's negligence.
Car insurance.
Car insurance is insurance that is used to protect cars resulting from accidents or losses.
Reinsurance.
Reinsurance is an insurance contract where an insurance company transfers all or part of its risk to another company. The main purpose of insurance companies that move the risk is to protect themselves against losses in certain cases that exceed a certain amount.
Life Insurance
Definition of Life Insurance
According to J. Tinggi Sianipar (1990: 5), the definition of insurance can be seen from the economic point of view is a way / means of transferring risk from one person to another With the transfer of risk carried out through insurance institutions, so if in the future there will be losses a person suffers due to the risk he faces, the intended loss can be transferred to another person, that is to whom he has transferred the risk, So in full the definition of insurance is a contractual agreement between the guarantor and the insured in an agreement where the guarantor promises to compensate for any losses suffered by the guarantor as a result of a risk mentioned in the agreement, which risk is not yet known or did not occur at the time the agreement was entered into (uncertain). Of willingness
The Purpose of Life Insurance
- Guarantee a estate from which the heirs can earn income if the head of the family passed away.
- To save money as part of someone's life estate held for future income.
Life Insurance Principles
In principle, life insurance is a form of cooperation between people who want to avoid or at least reduce the risk caused by:
a) Risk of death.
b) Risk of old age.
c) Accident risk.
Life Insurance Products
There are basically three life insurance products:
1. Term Life Insurance
This insurance is a type of life insurance where we pay a certain amount of money to the insurance company, and the company will protect us for a certain period of time from the risk of death. If there is a risk during that time period, your heirs will receive coverage. If the time period is over and2. Dwi Guna Life Insurance (Endowment Life)
there is no risk then the contract is finished and we will not get anything.
This type of insurance is almost the same as term life insurance. The difference is only at the end of insurance. If there is no risk to us, we will still get money coverage3. Whole Life Insurance.
This insurance is the same as Dwi Guna Insurance, the difference is that the time period is for life. That means we are protected forever (or until the age of 99)