Get to Know the Types of Insurance for Your Needs

The word "Insurance" is certainly familiar to many people. 

This condition is caused by the incomprehension of the community when buying the policy and the insurance claim process. 

Another reason is also triggered by the variety of 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.

The rights and obligations between the insurance service and the policyholder are already regulated. Where the policyholder is entitled to protection against reimbursement for loss, damage, and death from the insurance service provider. However, the right will be obtained when the policyholder makes a premium payment obligation 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:

• Protecting income from risks that come suddenly.
• Protecting the money saved to realize future plans.
• Protecting the future of the family when death comes.
• Protects physical and mental health when there is a risk of accident.
• Provides future protection from investments.

In order for the insurance benefits to be as you expect, then before choosing and paying the policy, first recognize the types of insurance:

Here are the Types of Insurance You Can Choose

1. Life Insurance

This type of insurance will provide financial benefits when death comes, sudden illness, or suffers from a total or partial permanent disability due to an accident or illness.

Before choosing Life insurance, understand the system and methods offered. There are insurance provider services that enforce 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 popular insurance products. Health insurance handles health problems and protects your finances in covering costs ranging from the treatment process of illness suffered to recovery.  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 to your financial capabilities. For example, if you want to buy health insurance products, you can choose health insurance products that include hospitalization only or only outpatient.

3. Education Insurance

Preparing education funds early on becomes a way to protect your child's future. Education insurance is one of the options that provide the advantage of protecting education.

There are two types of educational insurance offered, namely dual-purpose insurance and unit-linked insurance. Dual-purpose insurance, is a combined product of life protection combined with market instruments such as deposits. 

This type of insurance will cover the child's education costs if the parents suddenly die or are completely disabled to the point of no longer being able to make a living.

Unit link education insurance, is a combination of life insurance and investment. 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 derived from the development of investment funds. So, of the total premiums deposited by the policyholder, there are some funds allocated for protection costs and some are allocated for investment. 

Unit link insurance provides protection in the form of life protection, health, accidents, to critical illnesses. Meanwhile, the cash value contained in unit-linked insurance can be used in the future to pay Insurance Premiums when the policyholder is retired or does not earn. 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 the selling price position of your car 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 for accidents while working.

But try to look back at your activities and working conditions. If your work falls into the category of prone to accident risk, you should purchase an accident insurance product. Because, risks can occur anytime and anywhere both on the road and while working.

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 valuable assets for the sustainability of their business.

There are various benefits offered by corporate insurance. Some types of corporate insurance are popular for example 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 when he is still an employee in the corporation.

8. Old Age Insurance

Old age insurance is an insurance product that offers protection and guarantee to policyholders when at 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 in preparing a pension fund for old age, especially for those of you who do not get pension money from work.

So, what is the difference between old age savings and old age insurance? Old-age insurance provides more benefits than regular savings. You can plan for retirement with old age insurance. For the amount of premium, you can also choose according to your financial ability.

Scrutinize the Claims

After knowing the types and benefits of insurance that you need, it's a good idea 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 double-check the name of the Insured, the amount of Premium, Sum Insured (UP), the duration of insurance, 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 disbursement method. 

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