Have you and your family been protected? Do you understand the advantages and disadvantages of insurance used? How important is it really?
Let's discuss in depth about insurance , before reviewing further about why people should protect themselves?
For those of you who have a reserve fund, surely that is enough to cover everything.
Even so many insurance products as needed, such as life insurance, education, health, motor vehicles, property, guarantees, fire and heavy equipment .
If you are not careful and only be tempted by the sales offer . You will experience a loss, sometimes there are also products that provide investment facilities when you don't necessarily understand and need them.
It might seem beneficial because it is merged into one, which is not the case.
It actually makes you lose, because the coverage value received is not optimal, especially premium payment is fairly expensive.
But it would be wise for you to find out first all the negative negative consequences, who knows if you do not have future savings.
Some people have begun to realize the importance of minimizing the risk of loss. Whether caused by an accident or homeless.
Definition of Insurance
An agreement between the service provider (the guarantor) and the customer holding the policy (the insured) has an obligation to pay a premium in order to compensate for the risk of loss. Policy holders get a "benefit" based on damage according to the contract.
Insurance Strengths and Weaknesses
Some people still do not feel the need for these products due to lack of information.
Productive age, is the right time to work as hard as possible. But keep in mind that monthly income should not be spent that day.
You should set aside some money for life insurance, health, motor vehicles, education and so on.
Many people overwork (overtime work), as a result in old age even attacked by many diseases. Because of lack of preparation of a health reserve fund, the cost of care also inevitably uses savings.
The following reviews about the advantages and disadvantages of insurance, so that you are more aware .
The Advantages of Insurance
1. Provides guaranteed protection from the risk of loss
If you are already protected, the risk of loss of property or any damage can be minimized through an insurance program.
For example, we take the example of a new car suddenly having a road accident. If you do not have vehicle protection, the costs will be greater than if you use insurance.
2. Helping financial arrangements
Premium costs (money that must be paid every month as an obligation of the insured for participation). The amount of costs is adjusted by each company.
The responsibility for paying premiums every month, indirectly makes you obliged to set aside a percentage of income.
Compared to having to spend money to buy consumer goods and useless.
3. Good intention
Providers should describe in full the advantages and disadvantages of insurance. In addition they are required to explain the rules that you must obey. So, prospective customers understand their rights and obligations when joining an insurance program.
4. Reserve or savings funds
Still related to the first point, dividing money into different posts can make us more disciplined in managing finances. Instead of having to be mixed and messy without a list of expenses.
The Disadvantages of Insurance
1. Funds are forfeited if there is no claim
Customers who suddenly stop paying premiums. Then the rights will be taken by the insurance provider company. Of course it is disappointing, for that from the beginning please read how to claim carefully.
2. The scope of countermeasures is limited
Mitigation of potential losses by companies is quite limited to the risk that can be measured economic value.
Paid "compensation" only if you really have a problem or loss due to an accident, in accordance with the contents of the policy.
If the customer takes Fire Insurance but the damage is due to flooding, then the compensation will not be paid automatically.
From some of the above explanations about the advantages and disadvantages of insurance, can make you wiser in choosing as needed.
