Sunday, March 25, 2012

Why is insurance important?

Insurance and risk
Insurance was closely related with the smells of all kinds of risks. These risks can occur anytime and anywhere without being able to advance in the prediction, so many people who find it difficult to anticipate the risks that occur. The nature of risk itself can not be eliminated or avoided, but the impact of the risk can be minimized by transferred to the insurance. In this way then one can minimize the risk of a financial loss arising.
Diversification of risk
Can function as an insurance risk transfer, it is appropriate to the function of insurance itself where the individual or group of people can avoid a greater risk of loss by altering the risk of loss to a party to 2 (ie, insurance) to be borne, in which individuals or replace it with a group of people are paying the risk tersebutdengan a smaller number of losses (premiums) to the insurance.Some examples of that if anyone at risk of critical illness that requires a huge cost in such treatment, this will affect a person's financial therein due to unexpected expenses that resulted in disruption of the person's financial value, and therefore this risk can be transferred to the insurance, then the insurance will pay the cost of such treatment.
Keeping the wealth of a risk
But how risks are not insured? This will greatly affect adversely the financial risk of a person at the time had come. The occurrence of a financial risk can disrupt a person who will have an impact on changing the person's lifestyle. Risk due to the change of lifestyle can lead to lower standard value of a lifestyle. Impairment standard lifestyle is often the case this can give negative effects, where the discomfort one must change lifestyle patterns to a lower level. It is unfortunate when a person should have to give up some of his dreams disappear just because of the risk occurring. There is therefore a good idea before it came risks, one has to anticipate these risks to divert them to the insurer. So if the risk arises, one does not need to worry about the decline in standards of lifestyle or lose his dream.

The types of risks that affect financial
Economic risk
Economic risk is one risk that is often encountered and rarely can be avoided by anyone. Office employee or an entrepreneur always forget the main function of private insurance. This is because insurance is not a priority for them. For an employee, they felt it was safe because it was covered by insurance facilities for an entrepreneurial company while they are more concerned with the development of their business regardless of the insurance function.
Economic risks are risks that should be avoided and be aware of all walks of life. For an employee, the economic risks such as inflation or a collapse of the economy of a country could lead to rising unemployment or often hear the term layoffs. Ordinary person in a state of unemployment have a higher risk, this is because there is no longer active income revenue. Besides, the discharge or termination facilities provided by the company providing for the misfortunes that have laid off employees. But if at the time of these risks appear this will really be a burden to the person.
An entrepreneur can also experience the same thing happens when the economic downturn in a country. Business they will have difficulty in doing market penetration resulting in their revenues go down, or even a loss occurs. This situation was not favorable to the owners of the entrepreneurs who never thought about insurance as risk transfer to a state that does not want. So that it appears only if the risk will increase the burden of costs for an entrepreneur.
Therefore it is better to have an employee or self-employment or private insurance so they will feel more secure and comfortable without having to be afraid of these risks.
Technology risk
Increasing advances in technology sometimes makes one's daily activities. But besides that technological advances have provided an increased risk for users as well as the surrounding environment. As technologies such as kitchen appliances, electrical or equipment that we use daily are at risk without realizing the risks. As examples of risks that are often found in technology are resulting in gas leakage which there is a risk, or short electric current, or dysfunction is also operational on means of transportation as often happens these days. Some of the mentioned technologies are technologies that can not be separated from our daily lives and it is impossible to leave. Basically this is some risk can be predicted from the beginning but rarely ignored by the surrounding environment. It would be very dangerous and harmful if we keep ignoring this situation continues without taking any action. This should be a reference to minimize the risk of large losses by way of transfer to the insurer before the risk occurs.
The risk of human error
The risk of human error is the most common risks around us. This is caused by the negligence of someone that can result in risk to yourself and everyone around them. Some of these omissions may occur due to physical condition or lack fokusan person to perform a task. Examples of risk of human error that often occur around us every day is like driving a car, a lot of human error that occurred such as drowsiness during driving, exceeding speed limits or lack of concentration in the drive. It can cause risk of injury to themselves and to the surrounding environment. The risk that one is very difficult to predict or in anticipation before because we can not control what happens in the environment around us.
Risk maturity
This risk is often referred to as natural risk, or aging caused by someone age. This risk can not be avoided because it is absolute and must come. The average risk of popping when one is above the age of 45 years. These risks arise due to the various aspects of the irregular pattern of life at a young age, the risk of job, or weakening physical condition. Basically, if a risk situation has arisen, it would be very difficult to accept the insurance company can transfer the risk, or an acceptable cost to be paid very expensive. There is therefore a good idea before the risk occurs, someone turned it to the insurance.

Once we maenyadari some risk above, it would be very hard for us if it can not minimize the losses that arise, because most of these risks can not be in control or in the prediction of the coming time. Therefore, prior to such risks arise, someone had to be transferred to the insurer in order to minimize the losses incurred.

1 comment:

  1. The post is very nicely written and it contains many useful facts. I am happy to find your distinguished way of writing the post. Now you make it easy for me to understand and implement. Thanks for sharing with us.