After we learned about what the insurance is, now we gonna move further. In this article, we want to describe the types of insurance categories policy and its explanation. You will no longer difficult when choosing the right type according to your needs.
You can insure all things that are risky, but on condition that there are companies that offer such insurance services. As one of the non-bank financial institutions, insurance known as a good investment alternative and minimize the risk of unexpected events. Insurance companies make the insurance grouping policy according to their focus and risk.
The variety of policies is based on the type of risk covered. It also allows insurance companies to anticipate potential losses and set appropriate premiums. Premium, as already described in the previous article is the amount of money you have to pay as a liability from the insured for your participation in the insurance.
The most common insurance categories :
Life Insurance or Personal Insurance.
This type of insurance is related to the death factor. Before explaining it, we want you to ask yourself. What if someday you passed away and the family you leave behind should live without enough money, because you are the only person who has an income. In other words, their live depend on you. From mortgage payments, tuition fees to daily necessities. This situation will get worse if they have no funds for your funeral!
You might think this is trivial. But in fact, this could happen.
This life insurance protects your family by providing financial benefits to the person appointed to the death of the insured. There is a company policy that provides payments only after the death of the insured, some other insurance company there can allow the insured to claim funds before his death. Therefore, this type is also a promising investment.
This is why we think each and every person requires the life insurance.
This type of insurance is useful when you as the insured suffer illness or have health problems that need treatment in one time or several times. The insurance company will cover the overall medical costs. Generally, the company will cover your needs if you are injured, disabled, sick, and death by accident.
For those of you who are just looking for information about insurance, maybe you will wonder and ask: why my car should be insured? If I insure the car, it means I have to add funds after spending a lot to buy it. We will not judge you for that question. You are not alone, many also feel that way. Especially, if you are a new driver.
There are various car insurance policies that you can choose according to your needs. The difference is in, what will be borne by the company to you as the insured. The company provides protection in several ways: pay the loss of your car, pay for damage to your car caused by a collision (hit or hit an object or other vehicle), helps when the insured causes damage to someone else’s car or causes others injury while driving. They are also pay all medical expenses if you and the passengers in your car are injured.
Educational insurance is made because of the parents needs who want their children have a guarantee of a bright education in the future. It is useful when someday the parents are no longer able to pay for their children education, due to several reasons. Such as retirement, gets fired or the worst is the death of parents. In this way, the child will continue his education without any obstacles.
Above we have written the important points of some insurance types in general. There are many more of them, but we will explain to you in the next article.
In conclusion, you can choose the type of insurance according to your priority. BE smart in choosing what you need in accordance with the offer from the company. There is no reason not to start insurance from now on. Better late than nothing. See you in the next article!