There are various kinds of financial products in Indonesia, such as bank accounts, credit cards and insurance. Many people are very familiar with opening bank accounts and credit cards, but not insurance. In fact, this protection product can be a lifesaver when you are hit by the risk of unplanned financial loss.
The public’s lack of understanding of self-protection makes them feel reluctant and often think twice when offered guaranteed protection products. Indeed, if you look at the insurance concept where every customer is required to regularly pay premiums, this financial product seems detrimental. However, if you look at the protection side against life risks that cause you the potential to lose financially in an instant, of course this product is very profitable. The following explains the reasons that answer your question about why you should have an insurance product.
Can Minimize Losses After having a policy and paying the premium, you are entitled to Sum Assured from the insurance company for risks such as illness, accident or death. Did you know that the insurance coverage that insurance companies can afford is very large? Not just millions, but can reach hundreds of millions to billions of rupiah. So it is not surprising to say that insurance can save a person’s financial condition when they are exposed to risk.
If one day you suffer illness and have to be treated in hospital abroad for four days, the approximate costs that will be paid by the insurance company are:
4 day hospitalization costs: IDR 6,000,000,-
Consultation with Dr. Specialist: IDR 1,000,000,-
Consultation with Dr. General: IDR 750,000,-
Other costs (medicine, laboratory, etc.): IDR 15,000,000
The total costs that must be spent in 4 days can reach IDR 22,750,000. But don’t worry, with the help of insurance, you don’t need to bother going here and there looking for the money. All treatment costs, regardless of the amount, will be paid according to the Sum Insured option agreed in your insurance policy.
Can be used as savings. Are you someone who finds it difficult to save because you can’t stop yourself from always spending your monthly income? If yes, then insurance is a financial product that you can take advantage of.
Types of protection products that can be used for saving purposes include term-life insurance, or endowment or dual-purpose.
Effective for financial planning
Planning family finances is indeed difficult and easy. For example, planning to prepare education funds for children. It is not uncommon for many parents to not have proper preparation so they are always faced with confusion every time their child wants to go to school. Are you like that too?
So, with the help of education insurance you have additional funds to help prepare your child’s school fees.
Can be used as a form of investment
Insurance can be used as a form of investment in unit link products.
Has convenient benefits other than the Sum Insured
Insurance is a product that has various benefits apart from the Sum Insured. For example, with health care products, you will not only receive reimbursement for your treatment costs, but you will also be provided with facilities for inpatient treatment at selected partner hospitals both at home and abroad.