Insurance Principles

Until now there are many misunderstandings of the insurance community.

This is understandable because they do not know the basic principles of insurance companies work, so the amount of sum assured in excess of the amount of money given the premium is considered only the lure to get people to buy insurance.

In the community have been subjected to regular social fund contributions, the amount varies every month. Dues are useful when there are community members who are sick or died will receive compensation.

The principle of insurance work exactly like that. What can be done by people named as customary insurance. The amount is not how but there seemed to get welfare money.

In a larger scale, society is coordinated by the insurance company to pay a premium (= contribution) according to the size and ability will get compensation according to the amount of premium paid and expected by the existence of this allowance, the family left behind by customers, can continue his life properly.

Responsibility of a head of household is making sure his family can live though it was not feasible to assist.

How do you think?