1. Complete understanding of insurance

 The term insurance from the English language (Insurance) is coverage. So this insurance is an agreement between two or more parties to provide a guarantee for something that is promised. In simple terms, this insurance can be interpreted as providing an umbrella before it rains.

Furthermore, after reading the meaning of insurance, the two parties that you read above are the insurer and the insured. The insurer is the body that covers the insured party's insurance. Meanwhile, the insured party is the party who insures himself to the insurer. Then, as long as this insurance agreement lasts, there will be a condition called "Premium". This premium is a cost incurred by the insured party as a condition of the insurer.

There are 3 types of insurance that are run by an insurance company, namely Loss Insurance, Life Insurance, and Reinsurance. Loss Insurance is a company that bears damage, loss, decreased use of a thing, legal liability on the basis of loss to third parties, arising from an event that occurs. Then, Life Insurance is a company that bears the risk between life or death of an insured life. The third is Reinsurance, which is a company that provides coverage for another insurance company.

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2. Terms in Insurance

The following terms exist in terms of insurance:

Insurance policy

Insurance Policy is a letter of agreement between the insured party and the insurer. Then, this policy contains everything related to approved insurance. Both parties are obliged to know the contents of this insurance including basic understanding, regulations, conditions and others. This insurance policy will be the evidence and tools to apply for insurance from the insured.

Applicant

Furthermore, the Applicant is the party that applies for insurance to the insurer. Through this, the insured party will get the Policy rights as described above.

Policy Holder

Policyholders are the parties who have the authority to hold approved policies.

Insured (Insured)

Well, this insured is the subject that is insured in the agreement that has been approved. An example of the insured is the foot of Cristiano Ronaldo who has been insured for his safety.

Sum Insured Recipient (Beneficiary)

Furthermore, the Beneficiary is the person who will take money from the insurance party against the approved insurance agreement. Mostly, the person who is made the beneficiary is the closest person, such as a child, family, or closest friend of the insured.

Sum insured

Sum Insured is a form of responsibility from the insurer or "compensation" if something happens to the insured (the insured party)

Premium

Premium is money that must be paid during the insurance process by the insured party which has been agreed by both parties.

Cash value

Cash Value is an amount of money that must be returned to the insured party in the event of an event that results in the contract ending before the specified time.

Insurable Interest

This is the relationship between the insured party and the insured object.

Thus the article about the meaning of insurance and the terms in it. You already understand what insurance is? So, for those of you who feel that insurance is important, it means that you have thought ahead and are prepared for whatever bad things may happen in the future. This means that you bought an umbrella before it rained. This article does not refer you to an insurance subscription, it's just that insurance is indeed an important thing at this time because we don't know what will happen later.

How, already understand more about insurance? If you think that insurance is necessary, then you have started thinking about your finances in the future. From now on for better and more organized long-term financial savings.