Insurance is one of the non-bank financial institutions to minimize the risk of unexpected events, besides that insurance is also known as a good investment alternative. For some people in Indonesia, this insurance is considered a tertiary need. Though it must be realized that this insurance is very important to protect themselves and assets from various risks that will occur in the future.

According to the Financial Services Authority (OJK), Insurance is an agreement between an insurance service provider as a guarantor and the public who holds a policy and is known as an insured who is required to pay a premium amount in order to provide compensation for the risk of loss, damage, death and loss of profits. expected, which might occur for an unexpected event. In other words, the purpose of this insurance is to provide protection against a risk threat in the future. If the policyholder community experiences an unexpected thing and that thing is classified as something insured (stated in the contract), then the community can submit an insurance claim.

Note: premium is the amount of funds paid in a certain period to the insurance. In general, the greater the premiums paid, the more extensive protection or coverage provided by the insurance.

This insurance is very necessary, if possible early on it needs to be planned. The insurance needs of each community must vary according to need, therefore insurance must be tailored to the needs of each community.

Insurance is divided into several types and grouped according to focus and risk. This grouping will determine the risk to be borne according to the type of insurance company policy to anticipate potential losses. In addition, to determine the level of premiums offered according to the type of insurance each. In Indonesia there are several types of insurance that you need to know about, including:

1. Life Insurance

Life insurance is a product of insurance that provides coverage or protection against unexpected financial losses, for example the death of a person or conditions when someone cannot make a living (accidents and total disability). This insurance can be claimed by the insured which is often a family member of the policyholder. But there are insurance companies that offer insurance can be claimed by the insured before his death. As an illustration, suppose a father can buy life insurance for himself that will provide mafaat to his son and wife after his death.

Risk Protection:

  • Dead,
  • Fatal circumstances that can no longer make a living (for example: total disability).

The benefits: 

  • Protect the financial future if the breadwinner in the family cannot make a living anymore (death / total disability).

2. Health Insurance

Health insurance is a product of insurance that deals with the health problem of the insured due to an illness, besides this insurance also covers the costs of the treatment process. It is recommended to start buying from a young age so that the funds owned are large.

Risk Protection:

  • Injury, disability, pain,
  • Death due to work accident or work-related.

The Benefits: 

  • Partial or full reimbursement of costs incurred, for example hospital fees to hospitalization costs.

3. Venhicle Insurance

Vehicles that are usually insured are cars. This vehicle insurance serves to protect the risk of damage to the vehicle owned by the insured, especially if the vehicle is quite expensive and luxurious. This insurance is a solution to ensure assets are safe, if there is damage or loss involving a vehicle, this insurance can be claimed. This insurance can also cover the loss or damage to the insured motor vehicle. Car vehicle insurance has two types, namely total loss only insurance (loss and total damage to vehicles) and all risk (scratches or blisters on the vehicle).

Risk Protection:

  • Damage or loss of vehicle.

The Benefits:

  • Reducing losses due to something that causes the vehicle to be damaged or something that involves the vehicle.

4. Home and Property Insurance

Home and property insurance provides protection against loss or damage that may occur to certain personal items of the insured. In addition, this insurance also protects and provides relief if the insured's house or property experiences a disaster such as fire, lightning, earthquake, flood, and others.

Risk Protection:

  • Kerusakan atau kehilangan aset properti.

The Benefits:

  • Reducing losses due to disasters that befall homes and property.

5. Travel Insurance

This travel insurance is highly recommended for those of you who like to travel. This travel insurance is a protection service against risks that occur when a person is on a trip.

Risk Protection:

  • Sick, lost goods, accident, died, plane delay.

The Benefits:

  • Reducing costs incurred due to something that happens on the way.

6. Education Insurance 

This education insurance is one solution for parents to prepare their children's education funds early. Education insurance is a good alternative that can guarantee a better life for children's educational assets. The premium fee paid to the insurance company will be different for each community who buys this insurance, depending on the level of education they want to obtain. It is better to buy this insurance from an early age, because usually the earlier the age of the child, the premiums paid will be cheaper.

Risk Protection:

  • Cost of education.

The Benefits:

  • Reducing spending to finance education to the desired level.

7. Business Insurance

Business insurance is a product of insurance that provides protection services against damage, loss, or loss in large numbers that may occur in a person's business or company. The business is from micro level to multinational companies.

Risk Protection:

  • Damage, loss or loss of company assets resulting in influence in business.

The Benefits:

  • Reducing risk if business is not smooth,
  • Protect employees as business assets, employees are given health insurance and life insurance,
  • Investment and business protection,
  • Can be an attraction so that employees calm at work.

The conclusion is that each individual has different insurance needs according to their needs. The advice is buy insurance according to your needs.

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