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What is the term Insurance?

Significance of insurance. Term insurance is a system to prepare for various risks that occur in daily life.

There is no limit to the risks involved, such as illness, injury, death, accidents and other unforeseen events, fires, natural disasters such as typhoons and earthquakes, liability for damages to third parties, and disadvantages incurred in the business.

However, it is often difficult for individuals to deal with such risks on their own. Therefore, insurance is to collect a certain amount of Insurance premiums from people who are similarly anxious and trying to prepare for an emergency.

To mitigate people’s risks under such a mutual aid system that “everyone is for one person and one person is for everyone”. This is the outline of the insurance system and its social role.

Insurance features

Beyond insurance, there are several ways to prepare for risk. Savings, for example, is one way to do this. On the other hand, insurance is a system in which a large number of people share insurance premiums and compensate each other. Therefore, you can get the compensation amount equivalent to the emergency situation.

I think that this comparison will also bring out the unique characteristics of insurance.

Why do you need insurance?

What is Insurance? In other words, taking out life insurance means joining this mutual help mechanism.

And that means preparing for financial risks in advance so that you can live with peace of mind.

What is insurance for?

In our casual daily life, we live with vague anxiety about “maybe”. In recent years, household debt has also increased due to an increase in spending due to rising living standards and an increase in various loans.

The same is true for singles. If you can’t work because of a traffic accident, you’ll be in trouble with your living money.

We do not know when deaths, disasters, illnesses, and injuries will occur.

On the other hand, even if you live long without serious illness or injury, you may not always have enough income.

In this way, we are always at risk of losing balance throughout our lives.

It is necessary to prepare in advance for these dangers so that you will not be in financial trouble in the event of an emergency.

“Insurance” is there to prepare for the necessary expenses so that you do not have to worry about money.

What is the difference between insurance and mutual aid?

In contrast to insurance that covers an unspecified number of people, mutual aid covers people who are limited to a specific area, occupation, or member of a public organization.

What is the difference between insurance and derivatives?

While non-life insurance does not pay more than the actual amount of damage, derivatives pay a pre-contracted amount regardless of the actual amount of damage. In addition, non-life insurance requires an assessment of damages.

What is the difference between insurance and investment trusts?

Insurance is a system to compensate for damages (economic loss) caused by unexpected accidents, etc., and the insurance amount is fixed at the time of the contract. An investment trust is a system that seeks to make a profit by investing and managing funds. And the return fluctuates depending on the addition, insurance called “third sector” refers to insurance. That does not apply to either non-life insurance or life insurance. But since 2001, both insurance companies have been able to operate.

First field (unique field of life insurance)

Term life insurance, whole life insurance, endowment insurance, etc.

Insurance that promises to pay a certain amount of insurance money and pays the premium for the survival or death of a person

Second field (unique field of non-life insurance)

Fire insurance, automobile insurance, liability insurance, marine insurance, etc.

That promises to cover damages. That may occur due to certain accidents and pays premiums

Third field

Accident insurance, medical insurance, cancer insurance, long-term care insurance, etc.

Insurance that pays a fixed amount of insurance for physical injury, illness, and long-term care, or promises to cover the damage and pays the premium

  • Insurance mini-knowledge
  • The destination that doesn’t fall…
  • Insurance is square
  • One for one, one for all (mutual aid)
  • Insurance is just in case

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