DEFINITION OF INSURANCE LIFE

Definition of life insurance is a transfer of risk (Risk Shifting) for the financial losses (financial loss) by the Insured to the Insurer.

Risks that are delegated by the Insured to the Insurer is not the risk of loss of one's soul, but a financial loss as a result of loss of life or because a person reaches old age, so no longer productive.

A.    CONCEPT OF THE RISK.

The economic value of the life of a head of household (the breadwinner) is equal to the capacity of its income. If the economic value the life of a family head is lost or reduced, then who will suffer direct loss are his relatives.

The risk of losing this income to be borne by the family of the deceased. To reduce this risk in modern times has taken one way to assign or delegate these risks to other parties, in this case Institute of Life Insurance business specializing in this field as a profession. Delegation of the more popular risk-called "buy a life insurance policy."

B.     RISK THAT CAN BE INSURED TYPE.

Throughout the human life is always faced with the possibility of events that can lead to lost or reduced value of its economy. This resulted in losses for themselves and their families or other interested person. In other words, human beings always face the events that would present a risk as follows;

1. Death (death). 

Either natural (natural death) and died at a young age due to illness, accidents, (accidental death) and so forth. Each person would have died, although not sure when it will happen. Breadwinner's death will result in loss of income sources for the interested. Therefore, it required financial assurance in a certain period during which leave can not adjust to new conditions.

2. Disability Agencies (Disability) Due to Illness or Accident.  

As a result of illness or accident, a person is physically or mentally unable to work while thus affecting earnings. Whereas if a person suffers total and permanent disability, they can not work at all.

3. Critical Illness.

Critical illness can come at any time regardless of age, whether a person is young or old. Critical illness cannot be known when the arrival and can not be known with certainty.

             4. Old- Age/ Pension.

            Old-age events will occur, but how long it lasts the life of the old days, can not be known with certainty.

5. Education.

The development of the education the longer the better. The cost of a child who will continue the longer pebndidikan also more expensive. Parents should be able to anticipate the development of the education very seriously, because the cost of education now and ten years forward enchancing and increasing for the certainly much different.

The types of life insurance policies of the various types of life insurance available today, there are basically 3 types of life insurance;

1.       Term life insurance (Term Insurance) . It is a life insurance contract where the sum assured is payable only if death occurs within the period of insurance coverage period is still valid. Term Insurance is the simplest form of insurance and the oldest. The type of insurance is sometimes also called temporary insurance, in accordance with the insurance. The total premiums on this insurance is also cheaper than a lifetime of life insurance and life insurance can be Doble Function

2.       Lifetime Life Insurance (Whole Life Insurance). Life Insurance for life is designed to provide lifelong protection as long as he keeps the Insured remains active with her policy through premium payment policy. In addition to death protection, policy in also provides a savings element which is known as cash value that arises because a fixed premium.

3.       Life Insurance Doble Function. This insurance is comprised of two elements, namely protection of life and savings. Mental Protection provides death protection. Savings element of insurance is higher so that appropriate for the purpose of saving. With the savings element the  higher than the Insurance Futures and whole Life Insurance

C.     Life Insurance Unitlink    

In addition to the above three types of policy or also known as the traditional policy, the life insurance business is also known Unitlink insurance policy. Unitlink life insurance policies combine insurance with investment components.

This policy provides life insurance policyholders protection and a chance to participate in investments managed by insurance companies. Funds placed in the product cut for insurance protection and the remainder is invested in units of associated funds.

The purpose of this policy is for investment. By linking results unitlink investment policy with the performance of a fund, the policyholder has the potential to get higher investment returns than traditional policies.

Investment risk entirely the responsibility of the policyholder and the possible policy values ​​can go down. So, eventhough the potential policyholder investment returns greater than a traditional policy, investment risks are also great.

The Unitlink Product Types.

1.      Single Premium.

For single premium, the premium paid at once (lump sum) and used to buy units of a fund.

2.      Periodic Premium or Regular Premium.

For this type of premium is paid periodically or regularly. Unit purchased as premiums received.

Really…… Insurance is usefull for us, because our life can be insured and the most precious treasure……..

DEFINITION OF AGENT (GENERAL)

In accordance with the Law of the Republic of Indonesia, 1992, No 2,  on Insurance Business, noted that the Insurance Agent is a person or legal entity whose activities provide services, marketing services for and on behalf of insurance underwriting (in this case the Insurance Company.)

INVESTING YOUR MOST PRECIOUS TREASUE IN INSURANCE

Man plans, but God disposes. This expression seems to have commonly we hear and may also have existed since time immemorial. If we look at, this phrase actually contains a hidden message: life is full of risk. Anything? Lots, Lady and Gentlement. From the smallest risk, such as slipping in the bathroom, until the risk of losing their possessions, limbs and even lives.

The question now, whether we should just let go, or just do the best preparation for the risk in case it arrives. As a financial planner, of course I recommend the latter option. It's not my intention to invite you to think pessimistic, but instead they invite you to think far ahead. There are a lot of goals in front there who still want to achieve. Therefore, in achieving the objectives above, you should also prepare themselves to face a number of risks that may occur.

One of the anticipation of risk you can do is to take some insurance. Here I will tell the various risks that may happen to you, and insurance to anticipate them.

1.      Death .

Risk of death can happen unexpectedly at any time. If the deceased was alone, would not be ok. Troublesome if the dead man still had dependent children or other family members. How would their fate? From where they could eat and pay school fees?

If you currently have other people whose lives are your responsibility, certainly making life insurance worth considering. If there is life insurance, then the people you leave behind will get some insurance money he could use to finance his life. So, there is a third party who will "keep" the people you leave behind. There are many insurance companies that provide this service.

Everything is trying to provide the best service with various other inducements. You do not need to rush to close down or choose. Use your time for selecting which companies to provide bid and best service.

2.      Accident.

Wherever you are, the risk of accidents would still exist. You get on a plane, train, ship, even the slightest chance is always there. There are even incidents of people walking in the open field suddenly falling aircraft. Once there is also a bus crashed into a house and harm nyelonong the sleeping occupants. What happens if you have an accident? You usually will be taken to the hospital. You also will stay if the wounds you need to care for a long time.

Due to worst, you are disabled. Could be one of the organ or limb is not working. As a result, you can no longer work and earn income. Therefore, Lady and Gentlement, to anticipate these risks just take accident insurance. Provide accident insurance coverage money when you have an accident that required hospitalization at the hospital, suffered disability or even death. Just as death insurance, there are many companies that offer accident insurance. Generally, they provide an affordable premium.

3.      Sick / Ill.

Illness is expensive. If you are sick, at least you have to go to the doctor so that no consultation fee you pay. Not to mention drugs and if admitted to the hospital. Yes if the money exists. If not? Some hospitals are now requesting a down payment before you get treated. Not to mention if you have an operation. To guard against this situation, you can take health insurance.

Compared to a few years ago, now have more and more insurance companies sell this product. There are products that provide hospital reimbursement only, or replacement plus reimbursement of outpatient hospital, plus medication too. Now, you just live the best choice to suit your needs.

4.      Disaster for House.

These days we often see the news of the fire. Whether it's market, offices, or settlements. Now, if the accident happened to the home you live in now, imagine what would happen. Fuss, not everyone has enough money to rebuild homes devastated, so many who end up having to stay in your home, or more is definitely more in emergency tents. For this type of tragedy of this kind are also available insurance. Usually the price is quite affordable.

5.      Disaster on Vehicle.

Do you have a car or motorcycle? You also have the possibility of vehicle accidents. Now it only when driving, almost certainly there are other vehicles memepet-mepetkan my vehicle to vehicle. And it happened almost every day, especially in big cities. Even already driving with extreme caution could still be victims of the act of another driver who does not know the rules.

When the risk of accident is quite big, it could not hurt to take the vehicle insurance. Moreover if the vehicle to support you in making a living. If you are insured, when there is damage then the insurance company who will bear it.

Your life is the most precious treasure in this world, so invest your life for the future of someone you care about.

THE RISKS AND THE UNCERTAINTIES INSURANCE

               In life today, people are willing to pay a little loss for the period now to be facing big losses, which may occur in the future. Insurance is a willingness to establish small losses (few) that surely as a replacement (substitution) large losses is uncertain.

Man may be hit by various forms of loss. To reduce the burden of this loss, he made a pact to cover individuals or members of a group that is also open to similar losses, this agreement is known as an insurance contract. 

Insurance is a technical business involving statistical experts, financial analysts, engineers, economists, lawyers, and others. Contracts must be drafted carefully, restrictions on dependents must be drafted carefully, restrictions on dependents must be determined, the rate should be determined by fair and funds should be invested.

                                        

Insurance companies have a number of policy holders, whether obtained directly by representatives of insurance companies or through agents.

If the insured suffered a loss that is guaranteed by the policy, it faces risks taken expert. With it faces compensation created a sense of security among the insured. And with a sense of ease, the insured will be more vigorous in its operations or increase its production will be more

In business there must be risks that occur as well as with insurance of industry  so often interpreted as the uncertainty of financial loss or the possibility of loss. Risk always involves uncertainty and opportunities financial losses.

Uncertainty and opportunity loss can be distinguished 3 things, among others:

1. economic uncertainty is the uncertainty of economic policies that eventually will affect the price patterns of consumption or the development of technology.

2. Uncertainties related with nature is the uncertainty of the occurrence of storms, floods, fires, or other natural disasters.

3. Uncertainties related to human caused by war, murder, theft, and so forth.
Among the above three types of uncertainty, which can be insured is the natural and human uncertainty, while economic uncertainty could not be insured because it is speculative (economic elements) and difficult to measure the severity.

And the risks can be classified as follows.

a. Speculative risk is the risk of a speculative nature, which can cause loss or gain. 

b. Pure risk is the risk that always cause losses. Insurance companies operate in a pure risk (death, vessel sinking, fire, etc.)