If we are aware, insurance is an important thing in life that aims to protect something against the existence of risks that can have a negative impact on finances. As time goes by, many insurance companies are innovating in marketing their products. This insurance has many types, you can read articles on the types of insurance in Indonesia. One problem faced by clients is that sometimes the insurance products they use do not meet their expectations. The problem is not entirely the fault of the insurance company, there is a possibility that the clients themselves are not too familiar with the insurance products they use.
There are 2 products offered by insurance companies, life insurance and general insurance. What is the difference for these two insurance products? Let's see the discussion.
1. Life Insurance
Life insurance is one insurance product that focuses on protecting clients or customers. The risk that is protected is death or fatal circumstances so that they can no longer make a living (eg total disability). The benefit of this life insurance is to protect the financial future if the breadwinner in the family cannot make a living anymore (death / total disability).
Life insurance has 3 types of groups:
- Lifetime Insurance ( Whole Life )
Namely life insurance that provides protection until the age of the client reaches 99 years. The advantages of this insurance are in the nominal cash that continues to grow even though the premium payment period is over or exhausted.
- Term Insurance ( Term Life )
That is the only insurance that has no nominal cash and has an annual deadline. The drawback, premiums cannot be taken if the period expires. In addition, term insurance is the only one that does not have a savings feature compared to the other three types of life insurance.
Some of the benefits of term insurance (Term Life), namely:
- Affordable Premium
Due to the nature of the premium that can be forfeited, the price of this insurance is very affordable.
- Nominal Amount Paid is quite large
The nominal paid for this insurance is almost similar to other types of insurance.
- The Protection Period is Free and Adjustable
The deadline for protection can be tailored to client needs.
- Dual-use Insurance ( Endowment )
Namely insurance that provides benefits in the form of cash payments within the period specified according to the agreed agreement. Examples are education insurance and pension fund insurance.
2. General Insurance
There are more types of general insurance than life insurance, meaning that general insurance is not only limited to death. In addition, in terms of insurance payments to clients, general insurance is charged in the form of money and some is in the form of compensation. Based on the object, general insurance is divided into two, namely:
- Air and Sea Insurance
namely insurance that guarantees coverage against the risk of accidents occurring on land and at sea.
- Non Air and Sea Insurance
namely insurance that covers health insurance, vehicle insurance, home and property insurance, travel insurance, education insurance, business insurance, and so on.
Read: Difference between Health Insurance and Life Insurance, Difference between Pure and Unit Link Insurance, Difference in Sharia Insurance and Conventional Insurance