Many people think, take insurance to make a profit. In that sense, when there is a risk, the person can get more replacement funds than he deposited as a premium. This mistaken assumption leaves the person disappointed when things don’t go as expected. Or, there are people who think paying premiums is the same as saving. As a result, when the person cannot get back what he has deposited, he also gives up and does not want to take out insurance anymore.

The concept of “the law of large numbers” Insurance or protection is needed when someone realizes that there is a looming risk. Because, in essence, risk is always present in every human life. But we also need to realize, the level of risk faced by one person with another is different.
Those who have to work in the open, have contact with many people, or travel from one place to another, will have a higher risk of work accidents than those who work in offices all day long.
In more scientific terms, the more often we observe or carry out an event, the higher the inherent risk of that event. Actuarial experts call this kind of trend the concept of the law of large numbers. The law of large numbers in everyday life can be likened to the tossing of a coin. With one toss, the chance the coin will face up is 50%. The same possibilities apply to the opposite.
Well, the more often the coin is … Read More


