The word "Insurance" is certainly not foreign to the ears of many people.
Although the term "Insurance" is already popular, the majority of
Indonesians still don't have insurance.
This is from the level of penetration or ownership by the community. Based
on OJK data quoted from Bisnis Indonesia, July 2021, the insurance
penetration rate in 2019 reached 2.81%.
This figure increases to 2.92% in 2020 and 3.11% in June 2021.
This condition is caused by the public's misunderstanding when buying the
policy and claiming the insurance. Another reason is triggered by the
various types of insurance offered by insurance companies.
As a result, many people, especially those who are new to insurance, are
confused in understanding the benefits of each insurance offered.
Before finding out the benefits of insurance, let's understand together
about insurance.
Referring to the OJK website, insurance is an agreement between insurance
service providers (as insurers) and the public (as policy holders).
The rights and obligations between insurance services and policyholders have
been regulated. Where the policyholder is entitled to protection against
loss, damage, to death from the insurance service provider.
However, the right will be obtained when the policyholder performs the
obligation to pay premiums to the insurance company.
Basically, insurance offers good benefits in minimizing the risk of
uncertainty that will come without being forgotten.
at least, there are five insurance benefits that you can get, namely:
- Protect income from sudden risks.
- Protect the money saved to realize future plans.
- Protect the future of the family when death comes.
- Protects physical and mental health in the event of an accident risk.
- Provides a period of protection from investment.
So that the insurance benefits are as you expect, then before choosing and
paying for the policy, first identify the types of insurance that you can
choose
Here are the types of insurance that you can choose
1. Life Insurance
This type of insurance will provide financial benefits in the event of
death, sudden illness, or permanent or partial disability due to an accident
or illness.
Before choosing life insurance, understand the systems and methods offered.
There are insurance providers that apply a payment system after death.
However, there are also those who allow the Policyholder to claim funds
before his death.
2. Health Insurance
Health insurance is one of the most popular insurance products. Health
insurance takes care of health problems and protects you financially in
covering costs starting from the process of treating the illness you suffer
to recovering.
In general, the types of diseases that can be covered by this insurance
include disability, illness, and death.
To choose the type of policy to be taken, you may adjust it according to
your financial ability. For example, if you want to buy a health insurance
product, you may choose a health insurance product that includes only
inpatient care or only outpatient care.
3. Education Insurance
Setting up an education fund early on 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 link insurance. Dual-purpose insurance, is a combined
product of life protection combined with market instruments such as
deposits.
This type of insurance will protect the child's education costs if the
parents suddenly die or are completely disabled until they are no longer
able to earn a living.
Unit-linked education insurance is a combination of life and investment
insurance. The profit from the investment component is divided according to
the level of education of the child.
4. Investment Insurance
You can get insurance as well as investment which is also known as unit link
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 the available investment options.
As the name implies, unit link insurance offers two benefits, namely
protection and cash value from the development of investment funds. So, from
the total premium deposited by the policyholder, some funds are allocated
for protection costs and some are allocated for investment.
Unit link insurance provides protection in the form of life, health,
accident and critical illness protection. Meanwhile, the cash value
contained in unit-linked insurance can be used later to pay insurance
premiums when the policyholder has retired or has no income.
Thus, the Insurance policy remains active. In addition, the cash value of
unit link insurance can also be used for other financial purposes.
5. 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 your car's selling price
position more competitive.
6. Accident Insurance
Generally, people don't look at accident insurance much because they think
the company they work for has provided protection against accidents at work.
But try to review your activities and working conditions. If your job falls
into the category of accident risk-prone, you should buy an accident
insurance product. This is because risks can occur anytime and anywhere,
whether on the road or at work.
7. Corporate Insurance
Corporate insurance is a group insurance that provides protection to
employees of a corporation. Companies generally provide corporate insurance
to maintain employees as a valuable asset for business continuity.
There are various benefits offered by corporate insurance. Some of the
popular types of corporate insurance are group life insurance and group
health insurance. Because this insurance offers protection to employees of a
corporation or company, the policyholder's participation only lasts while he
is still an employee at the corporation.
8. Old Age Insurance
Old age insurance is an insurance product that offers protection and
guarantees to policyholders when they are of retirement age. Retirement age
is when you are no longer productive and can no longer make money.
By buying an old-age insurance policy early on, it will help you prepare
your retirement fund for old age, especially for those of you who don't get
retirement money from your workplace.
So, what is the difference between old-age savings and old-age insurance?
Old age insurance provides more benefits than ordinary savings. You can plan
your retirement with old-age insurance. For the amount of premium, you can
also choose according to your financial ability.
Research Claims
After knowing the type and benefits of insurance that you need, it is better
if you also understand the process of disbursing insurance claims.
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 Premium, Sum
Insured (UP), duration of insurance, insurance costs, investment instruments
and other facilities according to the agreement between the insurance
service provider and the policy holder.
Also learn about the waiting period for policy disbursement. Each Insurance
has a different method of disbursement.
Tips for you, before making an agreement with an insurance company, you
should study it carefully first. You don't need to rush, because, according
to Financial Services Authority Regulation Number 69/POJK.05/2016,
prospective policyholders have the right to study the policy (cooling down
period/freelook period). The time given is at least 14 (fourteen) days since
the policy is received.
So, what are you waiting for, let's get insurance that suits your needs and
profile. Later, you will be free from anxiety in the future.