What is the real function of insurance origin?
The main function of insurance is to provide protection to customers regarding the risks that can befall them. Of course, the promised protection is in accordance with the previously designed consensus.
A person is not
automatically able to obtain insurance functions. However, there are certain
steps that can make someone protected from the risk of using premiums. To
understand this, about how insurance works, you absolutely know.
How insurance
contributions work
The primary function
of premium origin is to protect its customers. For that, you must become an
insurance participant first if you want to get benefits from the insurance
premium product. At least in the way the insurance contribution works, there
are four stages a person can finally get the insurance function.
First, premium
companies must offer and introduce products to customers. In this regard,
premium agents who offer premium products must know correctly about the types
of products offered, the insurance premium to be paid, the period of the
insured, the value of the claim, and the risks borne. The goal is that the product
offer is not rejected by potential customers.
If there is interest
from the customer, an agreement or policy is made regarding the premium product
to be purchased. A policy is a form of agreement between an insurance customer
and the insurance provider. In the agreement, it is stated that the primary
function of the premium origin is to pay compensation using agreed terms when
the customer gets the risk that is synchronized with the agreement.
The next way of
working is the payment of the customer's insurance premium. This is the main
prerequisite so that customers will be able to obtain insurance functions. The
sum insured must be paid on an ongoing basis and in accordance with the terms
of the deadline and time period of payment. Later, the premium value can be
considered in the future.
The way insurance
works only enters the final stage if the customer submits a claim for the risks
that befall him. This risk is in accordance with what is borne by the insurance
company in the premium. From the side of the insurance contribution company,
this step is claimed as a benefit payment.
In the process of
paying benefits to the customer, the insurance provider is required to
investigate the event that caused the risk to the customer, accompanied by a
request for administrative evidence to the customer up to the verification
period.
If all there are no
problems, then the insurance company pours some capital for the payment of
benefits according to the agreement on the policy.
Get to know the
types of premiums
In essence, all
types of insurance have the same way of working, from product offerings to
benefit payments. But of course, the payment of these benefits is related to
using the policy synchronous risk protection. From this risk, the types of
insurance can be influenced as follows.
1. Soul premium
The function of the
life premium is to give the insured a financial return on his death. For
example, when you become the head of the family and become a customer of life
insurance contributions, your wife or children will later receive financial
benefits from the insurance contribution company after your death. This type of
insurance contribution can be purchased for self-interest and on behalf of the
insured only or purchased for the benefit of a third person.
2. Health
insurance contributions
This is the most
popular type of insurance known to the public. Synchronous with the name,
health insurance provides health protection for you. If you are a health
insurance customer who needs money for treatment to recover from an illness,
then the function of this insurance is clear. Premium companies will generally
pay benefits to customers in the form of reimbursement of medical expenses made
by the customer concerned.
3. Education
insurance
You could say,
premium education can be an alternative to guarantee a life related to
children's education. This insurance benefit is generally given when the child
insured by the policy reaches a certain age and can enter a certain level of
education. At that time, the insurance premium company will pay a number of
business costs which are the result of the investment from the customer's
premium. The amount itself is according to the consensus in the policy.
4. Motor vehicle
insurance premium
You no longer have
to worry about damage to your motorbike due to an accident or loss due to
theft. By insuring a car or motorbike, you have a guarantee of compensation if
you find damage or loss on your ride.
5. Property premium
Your property is not
likely to be stolen, but you can also accept losses from the risks associated
with your property. Fires, floods, and theft are the causes of property losses.
By buying a property insurance premium policy, you can get compensation if you
get a loss related to the property you own.
6. Old age fund
insurance contributions
Some premium
companies make contributions for old-age business expense coverage. As the name
implies, as a customer this type of insurance contribution can result in you
having post-duty business costs for welfare in old age.
7. Business premium
Synchronous as the
name implies, business insurance deals with losses that can occur in your
business according to consensus. This premium function actually minimizes the
risk of loss due to business activities or fraud that occurs in your business.
8. Travel premium