Risk Management Through Insurance

The risk does not only happen to investment. See the flood disaster currently, made many misery peoples, from that lost property even the life. What we could say, the flood was happened. However, the risks including the flood risk normally can be managed. At least, this risk could be shifted to the other side. Don't be surprised, if there are people that although losing property, like the car to house furnishings, appeared calm. These people might be moving their risk to the insurance company. So, the insurance company that will bear the risk that was experienced by those people.

The insurance program in fact is not the new matter. Various people understood the insurance as the risk manager indeed is need for its existences. However, the awareness to join the insurance program is not yet owned by everyone. Usually, after "learning their lesson" then their realized insurance is important. In spite of that, there are no words to be late. So that the same risk might not be repeated again, or might not be held by yourself, it is good for you considered to join the insurance program.

By joining the insurance program you are shifted the risk to the other side, in this case is insurance company. For the risk that was shifted, you must pay the premium that the amount is depending on the risk that was shifted and the benefits that you wanted.

You could shift your risk by purchase these three kinds of insurance, such as health insurance, life insurance and loss insurance.

1. Health Insurance

Before determine which insurance will be chosen, the first step that should be your first consideration is decisive the requirement. From the three insurance kinds above, determine the level of your preference in accordance with your condition. Generally, the first priority is to follow the health insurance. The reason is, when you were sick, the cost that is spent could not be a little. Although you work to a company and the company gave facilities for the health cost, its amount possibly not in accordance with your requirement. Moreover when you have a certain lifestyle. If you treated in hospital for example, possibly you wanted to be treated with the first class facilities, in fact facilities that were given by the company only second class facilities. To solve this problem you can join the health insurance that its benefit is matched for your requirement.

In the reality, some people not have health facilities. So when being sick, all the fees must be held personally. For them of course the health insurance needed is the absolute matter, because we don’t know when the risk of being sick came to you even we maintain the health well. Therefore, the health insurance could be considered to be owned.

2. Life Insurance

Then how about the life insurance? This insurance has been old enough, but not everyone gaze at must have this life insurance. There are many reasons. From objective one such as because consideration of finance, to the subjective reason as the paradigm mindset. Life insurance is most appropriate to be owned by the person of the productive age, because when your age was not long while your family is still need the financial support, definitely its would be bustle to filled. Therefore, consider also to have the life insurance.

How to choose the life insurance that in accordance with the age, the condition for finance, and the aim had life insurance? If your money to pay the premium is limited then the choice to most relevant is to choose the pure life insurance for protection only. Beside from its premium that is cheap, the return money as the benefit that will be enjoyed by their heir could be big enough. The pure life insurance protection better you take for the lifelong kind. So it is really meant as the inheritance for your family.

If the condition for your finance is good enough, you could consider too in taking the life insurance plus investment. This life insurance could be enjoyed by yourself personally, when up the deadline of the contract evidently your age still quite long. For example, at this time your age is 30 years, you could buy 20 years life insurance. If you aged long, then in the 50 years old, you will enjoy the premium that has been deposited plus its development through investment. But, when the Lord has other decisive and your age is not enough then your heirs will be guaranteed for their finance.

3. Loss Insurance

Next is the loss insurance. This is the insurance that when the flood has destroyed several cities in the world in recent times, was helped many people to not become poor. The vehicle or the house along with its contents that was damaged by the flood, if being insured could be claimed to the insurance company. However, there is also the owner of the loss insurance that evidently could not carry out the claim to the insurance company because of its insurance coverage is limited and not including the loss that is caused by the flood. Therefore, the main matter that must be paid attention when choosing the loss insurance is any aspect covered by this company. You must paid close attention to all of that aspect because of most insurance companies does not explain well to you.

Conclusion, the risk can be managed in various ways. One of them is by shifting this risk to the insurance company. If the condition for your finance is quite good, Could be considered at least to have three policies of the insurance. That is the health insurance, life insurance and loss insurance. But, if your financial is relatively limited, determine the choice in accordance with your requirement. Then, in choosing the insurance company, consider the most basic factor, like the company's genuineness and the premium that became your burden.