We think we are no strangers to the word insurance. Unfortunately, this one word has a negative connotation. Especially when we hear the word insurance agent, we will tend to avoid. For that, let's get to know insurance for rural communities.
However, sometimes we avoid what we don't understand. So, what exactly is insurance? Let's see the understanding of insurance, its function, and examples below!
Getting to Know Insurance for Rural Communities
|Illustration : Family Insurance|
Insurance is a form of agreement between both parties, namely the Insured and the Insurer, in which the Insured pays a dues to the Insurer in order to get a form of compensation for financial risks that can occur unexpectedly.
In the context of a modern world, Insurer means an existing insurance company, while the Insured is the customer. Customers are happy for rural communities.
Understanding Insurance According to Experts
"Insurance is an agreement between two parties, namely the insurance company and the policyholder, which becomes the basis for the receipt of premiums by the insurance company in exchange for:
Provide reimbursement to the insured or policyholder for loss, damage, costs incurred, loss of profits, or legal liability to third parties that the insured or policyholder may suffer due to the occurrence of an uncertain event; or
Provide payments based on the death of the insured or payments based on the life of the insured with benefits of a predetermined amount and/or based on the results of fund management."
In addition, "(Insurance, as a verb, is) coverage (agreement between two parties, one party is obliged to pay dues and the other party is obliged to provide full guarantees to the payer of dues in case something happens to the first party or his property in accordance with the agreement made)"
What are the insurance elements for rural communities?
Insurance for rural communities has 3 main elements, namely insurance premiums, insurance policies, and insurance claims. Insurance premiums for rural communities are dues that must be paid by customers during the agreed period of time. Usually premiums can be paid on a monthly, semesterly, to yearly basis.
Meanwhile, insurance policies for rural communities are legal documents governing insurance agreements. Starting from the value of benefits, the amount of premiums, risks covered, to exceptions (risks that are not covered by insurance). Insurance policies are legal and legally binding. If any party violates the policy rules, then the other party has the right to terminate the cooperation or even sue the party.
Insurance claims for rural communities are the process of submitting official to the insurance company when the customer experiences the risks covered in the insurance policy. If the insurance claim is made in accordance with the provisions stated in the policy, then the insurance company will provide a sum of money as compensation for the financial risks experienced by the customer.
The main function of insurance for rural communities is to help you overcome unexpected risks in life. Insurance for rural communities does not guarantee that the risk will disappear, but at least you can minimize the financial losses experienced due to these risks.
You need to remember that the function of insurance for rural communities is not as a certainty that our money will return and in larger amounts. The main role of insurance for rural communities is not to earn more money, such as investments, but to focus on protecting against risks that we cannot predict.
In other words, insurance for rural communities is our way to expect the unexpected (prepare things that we cannot prepare). Starting from the risk of accidents, the risk of falling ill, to the risk of losing the main breadwinner in the family. All of these risks are covered by insurance.
Types of Insurance for Rural Communities
There are many types of insurance for rural communities available. The risks covered by each insurance are different. However, here are basically some of the most common types of insurance that people have:
Health Insurance for Rural Communities
With the risk of disease that can happen to anyone and increased health costs, it is not surprising that this type of insurance is very popular because there is outpatient insurance and inpatient insurance, as well as health insurance with daily compensation.
Life insurance. It is usually used to protect the risk of death for the main breadwinner in the family.
Education Insurance for Rural Communities
Saving for higher education costs is increasingly difficult, therefore there is nothing wrong if you start saving for your little one's education insurance.
Home Insurance for Rural Communities
Home becomes one of the primary needs. Not only us, but the goods we have can also be risky. Therefore, home insurance guarantees impromptu damage to your home, such as fire, plugs, and others.
Vehicle Insurance for Rural Communities
Just like homes, vehicles are also prone to unexpected damage, such as the risk of accidents or theft.
Accident Insurance for Rural Communities
In addition to vehicles, you need to protect yourself from the financial risk of accidents. If your bike needs repairs, you may also need medical expenses for the risks that may exist.
Critical Illness Insurance for Rural Communities
Even if we try to live as healthy as possible, everyone still has a risk of developing a critical illness. Ranging from stroke, cancer, to heart disease, all these critical diseases are unexpected. The cost to pay the hospital bill is not small, because it requires insurance.
Travel Insurance for Rural Communities
Usually this type of insurance is sold along with the vehicle ticket you buy. Whether trains, ships, or planes, all have travel insurance options for delay protection or damage to baggage.
The type of insurance for rural communities chosen will be different for each person. This is because there are several types of insurance that are more needed, such as health insurance and life insurance, but some are secondary, such as education or vehicles.
This is because not everyone already has children or vehicles. But everyone certainly has a risk of getting sick, both young and old.
Hopefully reviews about providing insurance for rural communities can be useful, make sure you choose insurance because of necessity. *Brian Erdika