How insurance works -- Because life is full of risks, having insurance is a solution to protect yourself from the dangers. The risk of disease, running out of legacy, calamity, let alone death, can occur unexpectedly. This has become the essence of universal insurance services, which offer the management of these various risks to the insurance industry.
One of the challenges the insurance industry faces in many countries is that many people still do not recognize the benefits of having insurance. Many think that insurance is only a burden on daily expenses. This thought may arise because you do not understand insurance.
How life insurance works
Insurance functions in taking risks if something goes wrong. For example, a person who has insurance faces a disaster. As an insurance holder, the cost of taking care of this person is certainly borne by the insurance industry, according to the convention. Or insurance holders claim premiums that have been paid to the insurance industry.
Complete and correct conditions must accompany claims made by insurance holders. At least consist of incident reports, calculating losses felt by the policyholder, and supporting information.
The policyholder's obligation (insurance customer) is to pay a premium in a certain amount according to the terms. This premium is a source of income for the insurance industry which will be collected along with the premiums of all insurance customers to cover all claims made. There is a cooperation side from insurance customers to other customers facing disaster or risk.
Read Also: 7 REASONS WHY CAR INSURANCE IS IMPORTANT
No one knows that one-day terrible things will come to us. Acting vigilant is the best key to staying away from this. This is also what makes insurance we can also call future savings for future uncertainties.