Insurance brings social and economic missions with the premiums paid to insurance companies to guarantee the transfer of risk, namely the transfer (transfer) the risk of the insured to the insurer. Insurance as a risk transfer mechanism where the individual or business move some uncertainty in exchange for premium payments. The definition here is the uncertainty risk occurs or whether a loss (the uncertainty of loss).

Insurance in Indonesia started in the Dutch colonial period, associated with the success of the country’s companies in the plantation sector and trade in Indonesia. To meet the insurance needs of business sustainability, of insurance required. The development of insurance industry in Indonesia had a vacuum during the Japanese colonial period.

Security Needs Can Be Filled by Life Insurance

1) Personal needs, including: the provision of living expenses such as final costs associated with death, a bill payment fee, or loan debts to be paid; family allowances; education costs and pensions. In addition, a life insurance policy with cash value can be used as a savings or investment.

2) Business Needs, such as: insurance on key persons (insurance for key persons in the company); insurance on business owners (insurance for business owners); employee benefits (employee benefits) for example, health insurance and collections.

source: Morton, G. (In 1999). Principles of Life and Health Insurance. LOMA.