Basic Idea How To Manage Risks In Life Insurance

As we know in human life there is a risk that we can not avoid. Absolute risk inherent in this man's life is old age, sickness, and death. Every person must have three things sooner or later. But man all his life a conscious attempt to overcome or at least minimize this risk in his life. Or it could be called a human being trying to manage this risk so that they can live better.
From the above discussion about whether you know the basic idea of ​​how to manage risk?
How to manage risk or to minimize the risk can be done in several ways, namely:
1. Avoiding Risks
Avoiding risk can be done by eliminating the habit or activity that may pose risks.
Example: a man who worried about lung cancer due to smoking habit, can avoid it by stopping the habit.
2. Controlling Risk
Method of Controlling the Risks can be done by reducing the frequency and impact of the loss which may arise.
Example: A motorist must use a helmet and take care of his bike on a regular basis, to control losses that may arise. By using this bike helmets the riders hope will reduce the risk of serious injury when he fell. By taking care of his bike on a regular basis then the motorist is hoping to reduce the risk of accidents which may arise because the motor is not worth taking.
3. Accepting Risk
Accepting risk is done by maintaining the existing risks.
Example: A foreman at a chemical plant may not feel the need weeks to buy health insurance or because they think life can bear the losses that arise when an accident occurs.
4. Risk Shifting
Risk Shifting can be done by way of transfer or transfer the risk of an individual to a company.
Example: Worried if he loses the ability to generate revenue because of the death or accident, a head of the family would probably insure his soul (to transfer the risk to an insurance company) in order to save his family from suffering and poverty in later life.
Of the four ways to manage risk at the top, where among the best according to you?
In my opinion, almost every person must have known how to manage the risk no. 1 s / d no. 3. But many people still hesitate to decide or do not even know how to manage risk in a way to distract. Life Insurance attempts to reduce the impact of asset loss due to risks suffered by the owner or the parties to be borne by the owners of these assets, by providing compensation for losses. Compensation for loss is provided in the form of a sum of money to the beneficiary designated by the Insured.