Different Types of Insurance and Policies – The word “Insurance” is certainly familiar to many people’s ears. Although the term “Insurance” is already famous, most Indonesian people still do not have insurance.
Referring to data from the Financial Services Authority, Indonesian people’s understanding of insurance and its use is minimal.
This condition is caused by public misunderstanding when buying policies and insurance claims. Another reason is also 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 about the benefits of each insurance offered.
Before knowing the benefits of insurance, let’s understand together about insurance. Referring to the Financial Services Authority website, insurance is an agreement between an insurance service provider (as an insurer) and the public (as a policyholder).
Types of Insurance and Policies That Are Much Interested in the Community
The rights and obligations between insurance services and policyholders have been regulated. The Policyholder is entitled to compensation protection for the insurance service provider’s loss, damage, and death. However, this right will be obtained when the Policyholder undertakes the obligation to pay premiums to the insurance company.
Main Benefits of Insurance
Insurance offers good benefits in minimizing the risk of uncertainty that comes unexpectedly. At least there are five insurance benefits that you can get, namely:
- Protect income from sudden risks.
- Protect the money saved to realize plans.
- Protect the family’s future when death comes.
- Protects physical and mental health in the event of a risk of an accident.
- Provides future protection from investments.
So that the insurance benefits are as you expect, before choosing and paying for a policy, first identify the types of insurance available.
Here are the types of insurance that you can choose:
- Life Insurance
This type of insurance will provide 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, first, understand the systems and methods offered. There are insurance providers that implement a payment system after death. However, some allow the Policyholder to claim funds before his end.
- Health Insurance
Health insurance is one of the most popular insurance products. Health insurance takes care of health problems and protects you financially by covering costs ranging from treating the illness you suffer to recovery. The types of diseases that this insurance can cover include disability, condition, and death.
To choose the type of policy to be taken, you can adjust it according to your financial capabilities. For example, if you want to buy a health insurance product, you can choose one that only covers inpatient or outpatient care.
- 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 educational insurance offered: endowment insurance and unit link insurance. Endowment insurance is a life protection product combined with market instruments such as time deposits. This type of insurance will protect the child’s education costs if the parents suddenly die or are completely disabled so they can no longer 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 child’s education level.
- Investment Insurance
You can get insurance and investment, also known as unit link insurance. As the name implies, unit link insurance provides benefits in the form of protection and cash value obtained from the development of investment funds in accordance with the available investment options.
As the name implies, unit link insurance offers two benefits, namely, the protection and cash value obtained from the development of investment funds. So, from the total premium paid by the policyholder, some funds are allocated for protection costs and partly for investment.
Unit link insurance protects the form of life, health, accident, and critical illness protection. At the same time, the cash value contained in unit link insurance can later be used 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.
- Vehicle Insurance
Vehicles also need to be protected from things that are not desirable, 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 more competitive.
- Accident Insurance
Generally, people don’t pay much attention to accident insurance because they think the company they work for protects against work accidents.
But try to review your activities and working conditions. You should buy accident insurance products if your job is included in the accident-prone category. This is because risks can occur anytime and anywhere, on the road or at work.
- Company Insurance
Corporate insurance is group insurance that protects employees of a company. Companies generally provide company insurance to protect employees as a valuable asset for business continuity.
Insurance companies offer various benefits. Some popular corporate insurance types are group life insurance and group health insurance. Because this insurance protects employees of a corporation or company, the policyholder’s participation only lasts as long as he is still an employee at the corporation.
- Old Age Insurance
Old age insurance is an insurance product that provides protection and guarantees to policyholders when they enter 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 for retirement in old age, especially for those who don’t get retirement money from your workplace.
So, what is the difference between old-age savings and old-age InsuranceInsurance? Old age insurance provides more benefits than regular savings. You can plan your retirement with old-age InsuranceInsurance. You can also choose according to your financial capabilities for the amount of the premium.
After knowing the type and benefits of InsuranceInsurance you need, it’s good if you also understand the process of disbursing insurance claims. Understand all your rights and obligations as a consumer and the insurance company that will issue your policy in the future.
It would help if you double-checked the name of the Insured, the amount of Premium, Sum Insured (UP), insurance period, 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 policy disbursement. Each Insurance has a different method of disbursement. Tips for you, before agreeing with an insurance company, you should study it carefully first.