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.
Referring to data from the Financial Services Authority (OJK), Indonesian people's understanding of insurance and its use is still minimal.
This is reflected in the level of penetration or ownership of insurance by the Indonesian people. Based on OJK data quoted by 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 the insurance claim process. 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 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 policy holder is entitled to protection for compensation for loss, damage, and death from insurance service providers. However, rights will be obtained when the policy holder performs the obligation to pay premiums to the insurance company.
Basically, 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 money saved to realize future plans.
- Protect the family's future when death comes.
- Protects physical and mental health in the event of an accident risk.
- Provides future protection from investments.
So that the insurance benefits are as you expect, then before choosing and paying for a policy, first identify the types of insurance that are available
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 total or partial permanent 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 that 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.
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 (POJK) 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.