Know the Types of Insurance and their Benefits
Friend do you know what types of insurance? Insurance is a form of agreement between two parties. The parties in question are the insurer and the insured. Here the insured party must pay contributions or so-called insurance premiums regularly.
For the insurer, it is the duty to pay funds from routine premiums when there is a risk that is borne at any time. Here there are many benefits of insurance that need to be known because there are still people who think that insurance is detrimental.
Insurance benefits and benefits in general
Insurance provides benefits that are quite good for the lives of the people who use it. The following are the benefits of insurance when viewed in general or general.
- Risk Transfer Tool
The first benefit is to transfer financial risk. Insurance can transfer the burden of financial risk owned by its users. For example, if there is a health insurance policy owner, the benefit obtained is that the insurance user does not need to make full payment when undergoing treatment in a hospital. Users can be free from treatment costs while in a hospital or pay only part of it. Because the one who bears the cost of treatment is the insurance company.
- Minimize Losses
The next benefit is a reduction in financial losses. For example, a customer or policy user has a condition where he needs to spend a certain amount of money to cover the financial risk. This does not need to be done because the insurance company will bear all the costs of losses from sudden conditions.
Funds that would have been paid to cover financial risks can be used for other more useful things such as saving or investing. Because part or all of the risk is covered by insurance.
- Providing Security for the Future
Insurance is also useful for securing the future. Unpredictable financial conditions can be more stable in the future. This will make the user’s financial condition clearer.
Insurance in general is designed to help customers reduce the cost of unexpected losses. In addition, people who find it difficult to save long-term, for example for retirement money or children’s education funds, can take advantage of this insurance.
Types of Insurance to Understand
In addition to having general and general benefits, types of insurance also have their benefits. Each type has useful benefits for customers. The types of insurance are quite diverse, and can be selected, and adapted to customer needs. Here, we will explain the benefits of each type of insurance that is most sought after by the Indonesian people:
- Life Insurance
There are many types of insurance. One of them is life insurance. This is the most basic insurance. The benefit of life insurance is to provide protection or customer protection from the risk of death. It can be said, this life insurance is an inheritance for family members who are left behind, such as children or wives.
This life insurance is quite important because it becomes one of the solutions for the backbone of the family if at any time you die. The family left behind will not feel confused about their livelihood when suddenly the breadwinner is left at home.
- Health Insurance
Health Insurance
Other types of insurance that are quite important are health insurance. This is insurance that can help customers pay bills for treatment at the hospital. When a customer is suddenly sick and has to be hospitalized, the insurance company will cover part or all of the cost of treatment while in hospital.
The benefits of this insurance are very large considering that health costs always increase every year. Make sure when choosing health insurance you understand the contents of the policy. Each health insurance product has a different policy. Some bear part of the cost of care and treatment while in the ICU only. Some cover the entire cost of care and treatment during hospital stays, and so on.
- Critical Illness Insurance
Then there is critical illness insurance. This is also still one of the insurance products related to health problems. It’s just that this type of insurance provides benefits to customers, namely medical costs. These costs can be given directly when the customer is diagnosed with a disease or when undergoing treatment in a hospital.
So, customers will get an amount of money according to the policy when diagnosed with a critical illness. It is also possible to experience insurance benefits only when customers undergo treatment and care.
- Personal Accident Insurance
The next type of insurance is personal accident insurance. This is an insurance product that protects customers from the risk of accidents. If there is an accident while driving or while on the road, this insurance can be used.
The benefits that can be obtained can be in the form of covering medical costs such as surgery, it can also be in the form of a sum assured if there is a risk of total disability to death due to an accident.
- Vehicle Insurance
Vehicle Insurance
This type of insurance is useful for users who experience damage to their vehicle or other risks occur such as accidents, burglaries, to loss. Usually, vehicle insurance can be purchased separately or some provide it in a package with the customer’s vehicle.
The benefits of vehicle insurance are not the same as motor accident insurance. In vehicle insurance that get protection from the insurance are the goods or motor vehicles. While the motor accident insurance that gets protection is a person who drives a vehicle or who sits as a passenger.
- Travel Insurance
Many types of insurance can be chosen as needed, one of which is quite a lot to look for is travel insurance. This insurance is useful for customers who like to travel or have a tendency to travel frequently.
Usually, the benefits of this insurance include those related to travel delays or delays, the loss or damage to baggage, the risk of accidents, and medical expenses.
This type of insurance is often purchased together with the airline, boat, or train tickets. This travel insurance can only be claimed during the trip. If the risk occurs after the trip then the insurance does not work.
- Education Insurance
The most sought-after type of insurance is education insurance. Many parents are aware that the cost of education in Indonesia is increasing every year. The plan to send children to the highest level will be a little difficult if you don’t use insurance.
This education insurance provides benefits in the form of guaranteed tuition fees up to the undergraduate or college level. This insurance is also useful for parents who prepare education funds that inflation occurs every year.
Those are the types of insurance that are often and much sought after. Each type has benefits that can help customers or policy owners to suppress or minimize financial losses. Insurance itself can be regarded as a form of long-term investment. If you have trouble saving money to be able to realize one of your dreams in the future, insurance is the most appropriate way to take it. Choose the type of insurance according to your needs and ability to pay the premiums.