What is insurance? here are 2 meanings of the meaning of insurance


 what is insurance? here are 2 meanings of the meaning of insurance


Insurance is the most talked about thing today. Insurance has become a life companion like any other primary need. Therefore, especially the upper middle class people will subscribe to insurance to a certain insurance institution because this is so important. Then coupled with the many famous people who insure their valuable assets in full, such as Cristiano Ronaldo who insures his "legs" at full cost, and also Indonesian celebrity Chelsea Islan who insures his "head".

1. Complete understanding of insurance

The term insurance from English (Insurance) is coverage. So this insurance is an agreement between two or more parties to provide guarantees 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 you read above are the insurer and the insured. The insurer is the body that bears the insurance from the insured. Meanwhile, the insured 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 requirement to the insurer.

2. Terms in Insurance

The following terms exist in terms of insurance:

Insurance policy

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

Applicant (Applicant)

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

Policy Holder (Policy Owner) The policyholder is the party who has the authority to hold the approved policy.

Insured (Insured)

Well, this is the insured who is the subject of the insured in the agreement that has been approved. An example of the insured is Cristiano Ronaldo's feet which have been insured.

Beneficiary of Sum Assured (Beneficiary)

Furthermore, the Beneficiary is the person who will take money from the insurance against the insurance agreement that has been approved. Most of the people who are used as beneficiary are the closest people such as children, family, or closest friends of the insured.

Sum insured

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


Premiums are 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 the amount of money that must be returned to the insured 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 and the insured object.

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

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

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  • Unknown
    Unknown 7 Juni 2021 20.18


    • Putri
      Putri 7 Juni 2021 21.17

      Apa om

  • Unknown
    Unknown 11 Juni 2021 22.06

    Cara nya gimana ini

    Kalo bisa link nya di ganti kayak baiasa aja bro

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