TYPES OF INSURANCE COVERAGE AROUND THE WORLD
Insurance is known as an alternative investment that is quite good and minimizes the risk of unexpected events. The definition of insurance according to the website of the Financial Services Authority is an agreement between the insurance service provider as the insurer and the public who holds the policy and is known as the insured who is required to pay a premium to provide compensation for the risk of loss, damage, death, and loss of expected profits. , which may occur due to unforeseen events.
This term describes any action taken to protect against risk threats. The policyholder should pay a sum of money called a premium to the insurance company, which in turn agrees to provide compensation and protection against future losses that may befall the policyholder from the insurance company. When the policyholder or insurance participant or the insured experiences an accident and suffers a loss or damage as stated in the contract, the insured has the right to file an insurance claim. The recipient of this insurance is not only the insured whose name is listed as the policyholder of the insurance company but can also be another person appointed directly by the insured.
Insurance itself is known in various types or types and is grouped according to focus and risk. It is this focus and risk that determines the measure of uniformity in the risk borne according to the type of policy. This will be used by insurance companies to anticipate potential losses and determine the premium level offered according to each type 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 money saved to realize 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, before choosing and paying for a policy, first identify the types of insurance, here are some types of insurance:
1. Life Insurance
This insurance will provide financial benefits in the event of death, sudden illness, or total or partial permanent disability due to an accident or illness.
There are various payment systems for life insurance. There are insurance companies that provide after-death payments and others may allow the insured to claim funds before death. Life insurance can be purchased for personal use and on behalf of the insured only or purchased for the benefit of a third person. Even life insurance is also known to be purchased in other people's lives. As an illustration, suppose a husband
can buy life insurance that will provide benefits to him after the death of his wife. Parents can also insure themselves against the death of the child.
Before choosing life insurance, understand the systems and methods offered. There are insurance providers that apply a payment system after death. However, some allow the Policyholder to claim funds before his death.
2. Health Insurance
This type of insurance is also well known by the people of Indonesia. Health insurance is an insurance product that handles the insured's health problems due to an illness and bears the cost of the treatment process. Generally, the causes of the insured's illness whose costs can be borne by the insurance company are injury, disability, illness, to death due to an accident. Health insurance is also known to be purchased for the benefit of the insured only or the benefit of a third person.
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.
This is the most popular insurance and a favorite of policyholders. Education insurance is the best alternative and solution to guarantee a better life, especially for children's educational assets. The premium to be paid by the insured to the insurance company varies according to the level of education that will be obtained later.
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 an 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 the 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 protects 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.
Vehicle insurance is a general insurance product. This type of insurance became a boom during the May 1998 riots because the incident made people's interest in the ownership of protection for private vehicles increase drastically.
6. Accident Insurance
Generally, people don't look at accident insurance much because they think the company they work for has protected 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 protects 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.