Business to Insurances

Know the Life Insurance

Life insurance is a diversion or transfer of risk (risk shifting) the financial loss (financial loss) by the insured to the insurer. Insured is meant here is the participants and the insurance is the insurance underwriter. Risk transferred to the insurer is not the risk of the loss of one's soul but financial losses due to the loss of one's soul or because of old age that no longer productive.

In the article explained that the value of life insurance a person is reflected in the magnitude of protection or rather the sum insured (sum insured) or UP, UP theoretically the amount determined in accordance with the economic value of a person's life, it is intended to prevent UP too large (over insured) or the number of UP too small (under insured).

In life, we are always faced with the possibility of the occurrence of events that could lead to the loss or reduction in economic value, thus resulting in harm to yourself, your family or other interested person.

Events - events that can cause these risks, among others:

a) Passed away (death) either natural (natural death) or died at a young age can be caused by illness, accident (accidental death) and others.

b) Disability agency (disability, invalidity, incapacity) due to illness or accident

c) The loss or deterioration of the health situation (loss of health)

d) Old age or old age

Life insurance generally only manage risk in items (a) and clause (d), while item (b) and (c) are usually administered by private health insurance, life insurance, but this insurance will be added as a rider or additional.