Let's Understand Pre-Admission on Health Benefits in Your Policy to Get Guaranteed Early Coverage from Insurance Providers
When the COVID-19 pandemic occurs, it
is very important to have additional protection such as insurance. Even so, the
public's sense of trust and awareness of the importance of insurance is still
too minimal. At least in 2020, as reported by Bisnis.com (30/07/21), the
insurance penetration rate in Indonesia is still relatively low at only 3.03
percent.
One of the causes of the low level of
insurance penetration in Indonesia is that there are still many misconceptions
about insurance circulating in the community. There are many misunderstandings
about insurance that spread quickly by word of mouth even though what is stated
has not been proven true.
Misunderstanding of the Most Common Insurance
Here are 3 misconceptions about
insurance that are often circulated in the community:
1. Expensive insurance premiums
Many people consider insurance
premiums expensive. Whereas the nominal premium for each individual is not the
same because the nominal premium is determined based on several factors, such
as age, gender, health condition, and lifestyle.
In general, the younger a person's
age, the nominal insurance premium will be cheaper and vice versa, namely the
older a person is, the more expensive the insurance premium will be. This is
because the determination of the nominal premium is based on the conditions of
each individual and their needs.
If you are in good health and have
never suffered from any disease, it is likely that the premiums to be paid will
be more affordable. So it can be concluded that the nominal premium is not
always expensive and relative because it refers to various aspects.
2. Assuming insurance is the same as savings
People often expect to get 'savings results' from the insurance premiums they pay every month.
If we look at the basic concepts of
insurance and savings, then this assumption is not correct. The reason is the
first, insurance aims to provide protection to a person from unexpected
financial risks so that financial goals can still be achieved despite
experiencing risks in the course of time. While savings themselves have various
purposes, such as savings, emergency funds, and others.
Furthermore, insurance can be 'liquid'
or used to protect a person when exposed to financial risks, such as critical
illness, accident, and disability so that it is not expected to interfere with
other financial goals, such as buying a house, children's education, and
retirement funds.
By looking at the concept above, it
can be concluded that insurance and savings are different financial
instruments. This is because insurance does not function to prepare funds to
achieve financial goals that customers can take for granted. But insurance is
here to provide protection and a sense of security from financial risks that
have the potential to cause big losses.
3. Claims must be accepted
Many people think that whatever claims
they put forward must be accepted, even though this point is not quite right.
Please note that when someone submits
a claim to an insurance company, there are several things that become the basis
for making a decision whether the claim will be granted or rejected.
In general, there are 3 factors that
form the basis of decision making. The first is pre-existing conditions. If
someone submits a claim that turns out to be in a pre-existing condition or
conditions that existed before having insurance, the insurance company is not
entitled to pay the claim.
The second is the waiting period.
Let's take an example, if someone submits a claim for cancer that is still
included in the 90-day waiting period, then he/she can only file the claim if
the 90-day waiting period has expired. If the cancer claim is submitted before
the waiting period is over, the claim will be rejected.
One important thing to know is that
the claim will also be rejected even if it is submitted after the waiting
period is over if the cancer is related to a pre-existing condition.
The third is the exception. On the exception, each insurance company has different points. If we take an example, if someone files an injury claim caused by a criminal act or crime, then the insurance company is not entitled to pay the claim.
To avoid misunderstandings about
insurance above, here are some tips that one should do before choosing
insurance.
4 Tips for Choosing Insurance to Avoid Misunderstanding
1. Choose insurance according to your needs
To avoid misunderstandings about
expensive insurance premiums, you must choose an insurance plan according to
your needs. Be sure to review the financial flow so that the premiums paid do
not interfere with your finances.
For example, when you choose health
insurance and want to benefit from coverage areas other than Indonesia, the
premium paid will certainly be much more expensive than insurance with coverage
areas in Indonesia alone. Therefore, understand your needs well before choosing
insurance.
2. Intend to choose insurance for protection
The second is the intention to choose
insurance as protection. What this means is that instead of expecting to get
disbursement of funds from insurance, you should use other financial instruments
namely savings to achieve financial goals such as raising an emergency fund,
education fund, or investment.
This must be done because the basic
concept of insurance is to function as protection that will protect you from
financial risks such as critical illness, accidents, and disabilities that will
cause financial losses in the future.
3. Understand the policy well
The policy does have thick pages and
takes time to understand. Even so, you still have to read and understand the
policy carefully. This is done in order to avoid misunderstandings and to know
some important points, such as exceptions, a list of special illnesses during
the waiting period, and claims conditions.
4. Always discuss with Marketers
If you have any questions regarding
insurance, claim methods, benefit details, and so on, don't hesitate to discuss
them with a Salesperson. Send questions to the sales force so that all your
doubts are answered and you can choose insurance according to your needs.
To find out whether your Marketing Personnel
is licensed or not, you can check on the AAJI website.
Those are 3 misconceptions about
insurance and the tips you should do when choosing insurance. Be sure to follow
the tips above to get the best protection for you and your family.