Insurance Company
The insurance company is this belongs to the category of financial institutions instead of including bank institutions. But still insurance companies still hold an important role as one of the types of financial institutions of a State.
The function of the insurance company itself is as collateral for insurance services users in anticipation of the possibility of the emergence of certain losses.
Losses are caused by an uncertain event of the life or even death of a person.
Further explanation of insurance function will be discussed below, there are also commonly used terms and examples of insurance that are generally offered.
What is an insurance company? An insurance company is an institution that provides various policies or insurance agreements to protect its service users or customers from various risks of uncertain losses by means of paying a regular premium and a certain period of time .
Insurance functions and benefits
Some benefits that will be gained if following an insurance program, including the following:
As a tool or saving facility
Infrastructure saving, meaning is a number of funds insured has a cash value and can be taken back, the principle is almost the same as saving.
This type of insurance is included into the type of insurance such as whole life or endowment. Some types of insurance products are also intentionally coupled with investments, commonly called unitlink.
Providing protection and security
With the option to register an insurance policy, it will arise feeling safe and quiet because the insured object has secured a guarantee from the insurer or the company so that all possible risks can be reduced.
Allocating cost and more equitable benefits
This is because the greater risk of loss arising, the bigger the premiums paid by the police insurers.
Providing a level of certainty
The intention is essentially the insured party seeks to mitigate the uncertain consequences of a state of harm.
So in this case the use of insurance will change the view of the loss to be certain or relatively more definite.
The productivity of the insured business will increase
For the insured or members who want to invest in a particular business field (High Risk), the risk of investment is closed by the insurance that has been paid so that the losses that could be happened later can be Immediately minimized.
Credit Collateral
The insurance policy can also be enabled as a credit loan guarantee. It is usually only for life insurance and only applies to certain types of credit and banks, so it is very selective in its use.
