Insurance is an important guarantee that you should consider in the midst of difficult times like today.
However, because there are many types, not a few people are confused about the types of insurance that exist in Indonesia. The article below may be very helpful regarding the types of insurance in general.
Types of Insurance in Indonesia
Insurance companies in Indonesia are very diverse. This aims to provide comprehensive protection and compensation, not only to people but also objects. Here are some types of insurance in Indonesia:
1. Life Insurance
Life insurance has the function of providing guaranteed protection to the family left behind when the policyholder experiences bad things at some time.
Life insurance itself consists of two types, namely Term Life and Whole life. These two types have significant differences.
Term Life insurance is a type of protection for policyholders with a period of 1.5 to 10 years.
Whole life insurance guarantees protection to policyholders for the rest of their lives.
2. Health Insurance
The second type of insurance is health insurance, either for personal use or provided by a company agency to its employees.
This insurance aims to provide guarantees to the insured regarding medical treatment costs due to illness, injury, disability and death due to accidents.
Types of health insurance themselves usually exist in various categories, one of which is cashless insurance.
This type of insurance is fairly easy because you only need to show your insurance card and reimbursement when making a claim.
Well, one of the leading insurance products of this type is BCA health insurance. By weighing the pros and cons, you can decide for yourself whether the insurance is suitable for you or not.
3. Travel Insurance
As the name implies, travel insurance has benefits for someone who likes traveling.
With this insurance, your travel will be much more secure and minimize the risks during the trip.
Not only that, travel insurance is also important and mandatory when you want to travel abroad. For example, when you want to go to Europe, everyone is required to have travel insurance to issue a travel visa.
4. Property Insurance
The purpose of this property insurance is to provide guarantees for valuable assets owned such as a house, either part of the house such as a kitchen, bathroom, or the whole house, valuables to the company in case of damage or loss.
Including factory property, land and so on. This type of insurance is very useful for those of you who have residential locations or company buildings prone to disasters or theft.
So that later if something unwanted happens, the loss will be fully guaranteed by the insurance company.
5. Vehicle Insurance
As the name implies, this type of insurance aims to provide protection for vehicles in the event of problems such as damage.
Vehicle insurance generally consists of two types of products, namely All Risk Insurance and Total Loss Only Insurance.
By following vehicle insurance, you are much more guaranteed protection from various kinds of risks such as damage, theft to natural disasters.
For those who have high mobility with vehicles, choosing this insurance is the right decision.
6. Education Insurance
In Indonesia, there are two types of education insurance. The first is Unit Link Insurance where the premium paid is not only for education protection but can also be used as a mutual fund investment.
While the second is Dwiguna Insurance which aims to guarantee all education costs when the child’s guardian dies or is totally disabled and does not earn a living.
This education insurance is effective because money market instruments can provide tangible results.
7. Accident Insurance
The next type of insurance is accident insurance where the main purpose is to provide protection against the risk of accidents.
The types of accidents are traffic accidents, work accidents or personal accidents.
In terms of benefits, this insurance is almost similar to life insurance. Where you will be given liability money when the insured has an accident until death or total disability.
8. Business Insurance
The establishment of business insurance aims to provide guarantees for losses experienced by the company.
The loss itself can be caused by damage due to natural disasters, loss due to theft and so on.
Business insurance can be used for all business owners ranging from small entrepreneurs or SMEs, large companies to multinational companies.
The insurance also provides benefits such as health insurance, severance pay and protection of company assets.
9. Disability Insurance
As the name suggests, this insurance aims to provide coverage to people who are at risk of becoming disabled.
This kind of insurance is usually needed for those who work or are in areas prone to disasters, wars or accidents.
In Indonesia, the insurance that dares to provide this kind of guarantee is Asabri insurance. This government insurance product is specifically intended for members of the TNI and POLRI who are still on active duty.
10. Pension Fund Insurance
The last type of insurance is pension fund insurance or what is often called the Financial Institution Pension Fund.
This insurance product aims to provide financial security when the policyholder has retired.
With pension fund insurance, it is expected that you can still live properly even though you are no longer actively working.
There are various examples of pension fund insurance products such as BRI Life, Manulife, AXA Mandiri and Allianz.
Apart from the ten types of insurance above, there are actually many other insurance products in Indonesia such as Animal Insurance, Money Insurance,
Liability Insurance, Project and Construction Insurance, Social Insurance, Marine Insurance, Credit Insurance and Fire Insurance.
Each has the same purpose and benefits, which is to provide guaranteed protection against bad things that happen in the future.
In addition, the amount of premium paid also varies and depends on the insurance company’s policy.
Benefits of Using Insurance Products
After knowing the various types of insurance in Indonesia, the next discussion is the benefits of using insurance products. Here are some of the benefits of using insurance protection:
Can Provide a Sense of Security and Calm
One never knows what will happen in the future, whether related to work, health, education or finance.
This sometimes makes people worry so that they think the wrong thing.
But when you have insurance in any form, that worry might be slightly reduced.
Because at least you have a guarantee of protection against what will happen in the future.
Provides Risk Assurance for a Loss
From some of the above, it can be concluded that insurance does not only provide protection.
But it can also provide risk guarantees for a loss experienced by the insured party.
If in the future the customer experiences events or things that cause loss of life, finance, health or assets, the insurance company is willing to bear all the costs of the loss. Of course, according to the type of insurance owned.
Insurance as a means of investment
The last benefit of insurance is as a means of investment for the long term. By registering as an insurance company customer, you will have the opportunity to get a return on investment at the end of the contract.
In addition, insurance products are also intended as investments that provide flexibility and leeway to choose the period of coverage.
Customers can even choose this coverage period according to their ability and needs.
Tips for Choosing Insurance Products for Beginners
For those of you who are starting to think about using one of the types of insurance above, make sure the insurance company chosen has been registered with the Financial Services Authority (OJK). Don’t forget to choose an insurance premium that suits your ability.
In addition, make sure not to delay buying insurance products because we don’t know what will happen in the future. So instead of regretting it in the future, it’s better to prepare from now on.
Finally, you also have to be observant in choosing insurance products from various companies. Choose a product that does have many additional stay first benefits that will benefit customers in the future.
That is the discussion about various kinds of insurance complete with benefits and how to choose the right insurance product. So how, are you ready to use one of the insurance products above?
