The word “insurance” is certainly familiar to many people. However, despite its popularity, the majority of Indonesians still do not have insurance.
Before discovering the benefits of insurance, let’s understand together what insurance is. Insurance is an agreement between insurance service providers (as insurers) and the public (as policyholders).
The rights and obligations between insurance services and policyholders have been regulated. The policyholder is entitled to protection for compensation for loss, damage, or death from insurance service providers. However, the right will be obtained only when the policyholder fulfills the obligation to pay the premium to the insurance company.
Insurance offers good benefits in minimizing the risk of unexpected uncertainties.
There are at least five insurance benefits that you can get, namely:
- Protecting income from unexpected risks.
- Protecting money saved to realize plans.
- Protecting the future of the family when death comes.
- Protecting physical and mental health when there is a risk of an accident.
- Provides future protection of investment.
To ensure that the insurance benefits are in line with what you expect, you should first identify the types of insurance that you need.
Here Are The Types Of Insurance That You Can Choose From
Life Insurance
This type of insurance provides financial benefits in the event of death, sudden illness, or total or partial permanent disability due to an accident or illness.
Before choosing life insurance, it is important to understand the system and methods offered. Some insurance provider services apply a payment system after death, while others allow policyholders to claim funds before their death.
Health Insurance
Health insurance is one of the most popular insurance products. It handles health problems and protects you financially in bearing costs starting from the process of treating the illness you suffer until you recover. In general, the types of illnesses that can be covered by this insurance include disability, illness, and death.
To choose the type of policy to take, you may adjust it according to your financial capabilities. For example, if you want to buy a health insurance product, you may choose a health insurance product that covers only inpatient care or only outpatient care.
Education Insurance
Setting up an education fund from an early age is a way to protect your child’s future. Education insurance is one option that provides protection benefits for education.
There are two types of education insurance offered, namely endowment insurance and unit-linked insurance. Endowment insurance is a product that combines life protection with market instruments such as deposits. This type of insurance will protect children’s education costs if a parent suddenly dies or becomes disabled and is no longer able to make a living.
Unit-linked education insurance is a combination of life insurance and investment. Profits from the investment component are divided according to the child’s education level.
Investment Insurance
You can get insurance as well as an investment, which is also known as unit-linked insurance. As the name implies, unit link insurance provides benefits in the form of protection and cash value derived from the development of investment funds according to available investment options.
Unit-linked insurance offers two benefits, namely the protection and cash value that comes from developing investment funds. Of the total premiums deposited by policyholders, some funds are allocated for protection costs and some are allocated for investment.
Unit link insurance protects the form protection for life, health, accidents, and critical illness. Meanwhile, the cash value contained in unit-linked insurance can be used later to pay insurance premiums when the policyholder is retired or has no income. Thus, the insurance policy remains active. In addition, the cash value of unit-linked insurance can also be used for other financial purposes.
Vehicle Insurance
Vehicles also need to be protected from unwanted things, such as loss or damage. The benefit of buying a vehicle insurance premium is that it provides protection and a sense of financial peace if we are faced with the risk of vehicle damage.
In addition, having vehicle insurance also makes the selling price of your car more competitive.
Accident Insurance
Generally, people do not pay much attention to accident insurance because they think that the company where they work already protects against accidents while working.
But try to look back at your activities and working conditions. If your work is included in the accident-prone category, you should buy an accident insurance product. This is because risks can occur anytime and anywhere, both on the road and at work.
Corporate Insurance
Corporate insurance is group insurance that protects employees of a corporation. Companies generally provide corporate insurance to maintain employees as valuable assets for business continuity.
There are various benefits offered by corporate insurance. Some popular types of corporate insurance include group life insurance and group health insurance. Because this insurance offers protection to corporate or company employees, the policyholder’s membership only lasts when they are still an employee of the corporation.
Old Age Insurance
Old age insurance is an insurance product that offers protection and guarantees to policyholders when they reach retirement age. Retirement age is when you are no longer productive and can no longer make money.
Buying an old age insurance policy early on will help you prepare a retirement fund for old age, especially for those of you who do not receive pension money from your place of work.
So, what is the difference between old age savings and old age insurance? Old age insurance provides more benefits than regular savings. You can plan for retirement with old-age insurance. For the amount of premium, you can also choose according to your financial capabilities.
Examine Claim Matters
After knowing the type and benefits of insurance that you need, it is a good idea to also understand the insurance claim disbursement process. Understand all your rights and obligations as a consumer and also understand the insurance company that will issue your policy in the future.
You must check again the name of the insured, the amount of the premium, the sum insured, the duration of insurance, insurance costs, investment instruments, and other facilities according to the agreement between the insurance service provider and the policyholder.
Also, learn about the waiting period for disbursement of the policy. Each insurance has a different disbursement method.