Type Type of Insurance

At this time has developed various types of insurance in society, in risk management, insurance enables the sharing and transfer risk, this is the best way to compensate. Most people do not understand the fundamental differences in the types of insurance, but to determine the most suitable insurance programs to the needs, we must recognize the types of such insurance.

Insurance is divided into two main types
1. Traditional Insurance
2. Non-Traditional Insurance (modern)

Broadly speaking, insurance consists of three categories, namely:
Insurance
Consisting of insurance for property (property, vehicles), financial interest (pecuniary), legal responsibility (liability) and self-insurance (accident or health).
 
Besides, there are several types of insurance including

Life insurance
In essence is a form of cooperation between the people who avoid or at least reduce the risks caused by the risk of death (which would happen but not sure when incurred), the risk of old age (which must occur and can be expected when they are incurred, but not sure how many long) and the risk of accidents (which are not inevitable, but not impossible). Cooperation which was coordinated by the insurance company, which works on the basis of law of large numbers (the law of large numbers), which spread the risk to people who want to cooperate. Programs include life insurance, such as: insurance for education, retirement, investment, stages, health.

Social Insurance
Social insurance is compulsory insurance program organized by the government under the Act. The aims and objectives of social insurance is to provide a basic guarantee for the public and is not intended for commercial gain.Okay, now we discuss a little about the Non-Traditional Insurance

Non-Traditional Insurance or so-called modern insurance, is insurance to the type of UNIT-LINK. Where is Unit Link Insurance is very popular at the moment, why? because Unit-Link is a type of insurance that combines Life Insurance and Investment. Life insurance is mated with the investment, is the type TERM. Remember! TERM if it is short-term insurance, and insurance costs could rise with age.

UNIT LINK = TERM + Investment

Most people take the Unit Link because he wanted to save the results are many-fold, than have to save money in the bank, with interest does not amount to much. By investing or mutual fund, the money we invest will grow prolifically. But keep in mind, the greater the profit, the greater the risk.

Investment may increase and may decline, according to the economic development of the nation at that time. In times of crisis, it is certain that we have investment value dropped dramatically, and consequently the value of our savings will be depleted. If so, do not protest dong .. did not gain much pingin means shall bear the loss as well .. :)

Certainly, in the type of unit-linked insurance, do not have a guaranteed cash value, even the companies that issued such insurance policy, can not promise the cash value earned in the year X. Another case of traditional insurance, in her policy was clearly set forth the guaranteed cash value and is obtained in X.

As there is no guaranteed cash value, probably in year 11 or more, the insured must pay premiums again, though promised to pay only 10 years, in fact, is not listed in the policy premium payment period, so the premiums can be charged back at any time.

Unit Link, bear the cost of life insurance is the type TERM, then each year the cost would increase with age, and the cash value that is formed will cut insurance costs and other administrative costs.
How is an explanation of Insurance
any questions?

Before you choose the right insurance for you, you should consult truly understand the concept of this insurance. Since everyone has different characteristics in managing finances.