Insurance has a vital role in our lives. This financial product can be a lifesaver when we are stuck in an emergency, such as a lost vehicle, an accident or even a lack of education costs. Various types of insurance ranging from life insurance, vehicle insurance, health insurance to education can protect our lives now and in the future. So of the many insurances, what type of insurance should be purchased? It all depends on the needs and financial condition of each. Therefore you must consider various things that must be considered before applying for insurance. So as not to choose the wrong product. Remember insurance is a long-term product that costs a lot of money.
You have to carefully consider several things that must be considered before applying for insurance, so you don't regret it in the future. So what are these things?
Things to Pay Attention to Before Applying for Insurance
Understanding the details of the selected insurance
Be it life, health, vehicle and education insurance, they offer more than one type of insurance. Life and health insurance, for example, divides it into several classes, while vehicle insurance usually offers two products such as All Risk and Total Loss Only (TLO). Well, all of these products have different benefits.
The most important thing is that each product has a premium with a different amount and various coverages. Do not be tempted by promotions that are temporary but ultimately burden your finances. Remember, insurance is not a liquid savings account and you can use it at any time.
Some of the details that must be studied are the amount of premium, the minimum period of payment, coverage and how to claim. If you feel something doesn't fit, don't hesitate to cancel.
Understanding Family Needs
As the head of the family or the backbone, you actually have to be protected by life insurance. So that when things happen that are not desirable, such as a sudden accident and death, there are a number of inheritances that can be given to the heirs, especially to pay off various debts.
But not everyone agrees on that, right? There are also backbones who prefer to buy life insurance because they feel it has more benefits. If life insurance can only be disbursed when the policyholder dies, health insurance does not take long.
Usually six months from the installment period can be used for inpatient and outpatient treatment.
Or do you feel that you are already prosperous in life and physically and mentally healthy, but have doubts about the cost of your child's education in the future? Maybe education insurance can block that loss.
So knowing what to pay attention to before applying for insurance will make it easier for you to prioritize and choose what type of insurance is most needed.
Choosing the Right Insurance Company
There are many insurance companies operating in Indonesia with similar product offerings. But of the many there is always a difference that could be suitable for your needs.
For example, a small premium or a large coverage. But besides that you also have to pay attention to the credibility of the insurance company.
Try to check the track record by looking for as many online reviews as possible. Usually there are special forums that talk about the insurance. Compare which one is the most rational to provide protection, so that it can make your life more calm.
Or if you are still confused, you can ask for help from a financial consultant. They will provide recommendations for the right insurance products according to your risk profile and wishes.
Financial consultants will also be happy to explain things to consider before applying for insurance.
Long Term Profit
Actually insurance is not an investment that can multiply money many times over.
This is just a protection with our own funds. That's why we need to make sure that the premiums paid every month will not just disappear, except for the case of vehicle insurance which will indeed be forfeited if not used.
Determine the premium to be paid and calculate it to the maximum limit. Then comparing it with the sum assured that will be obtained is one form of measuring long-term profits. Do you think it is in line with expectations or not.
Remember that some insurance products also offer unit-linked insurance, with some funds allocated for other investment products such as mutual funds and stocks.
So there is an additional benefit at the end of the premium payment later.
Understand the Risk Factors
Because insurance is not guaranteed by the government, any loss or fraud will be your own loss.
Therefore, before making a choice, you should first understand the various risk factors, such as funds that cannot be disbursed or the sum insured that does not meet expectations (on average due to lack of knowledge of the policyholder).
For example, you buy car insurance for a period of one year for Rp. 5 million. It turns out that in one year your car is fine, never experienced any defects.
Then at the end of the policy payment period the sum insured becomes the property of the company. You have to accept it with a legowo when each year you do not feel the benefits of these funds.
Or when you buy insurance premiums for dengue fever. Already paid around hundred thousand for one year protection.
In fact, you have never contracted dengue fever, so the money that has gone into this insurance company can't be taken back either.
Those are some things that must be considered before applying for insurance for both life, health, vehicle and education insurance needs.
When we talk about some things that must be considered before applying for insurance, perku also discusses some details about taking insurance claims.
Steps for Submitting Insurance Claims
Kalin insurance cannot be obtained just like that when you need it. A number of efforts, such as completing documents and making police reports, are mandatory to get the sum assured.
It's a bit of a burden, especially if you're in a period of mourning or sadness. However, if it is not immediately taken care of, the sum assured can float.
So what are the steps to submit an insurance claim?
First, contact the insurance company
When, for example, you lose a motor vehicle, immediately contact the insurance company and ask the details of what you have to do to be able to cash out the claim.
Some types of insurance can be dissolved if you do not take care of it immediately. Loss of a vehicle has up to two days after the event of loss.
If you are late in making a claim, or exceeding the time limit specified by your policy, it cannot be withdrawn. This was stated at the time of signing the agreement.
Record and Collect Proof of Loss
This evidence is also an important factor whether or not the claim can be disbursed. When you have an accident that causes serious damage to the car, do not rush to take it to the repair shop.
Wait for the insurance to do a survey so you can get free repairs.
Or when you suffer from certain illnesses that force you to be hospitalized or even undergo surgery. Keep all proof of payment because this will be strong evidence for the claim process.
The existence of proof of payment in the form of a receipt with an official hospital stamp is a justification that your illness is real, not fake.
Filling out a Claim Report
When visiting an insurance company and want to make a claim. You will first be asked to fill out a claim report, especially in the event of a vehicle loss, a letter of loss from the police is required.
We recommend that you complete all the documents first before submitting a claim so that the process does not take long.
Bargaining Claim Amount
If by chance the claim you want to disburse is vehicle insurance, then the process of bidding on the amount of the claim with the insurance company is quite difficult.
Especially if you have an accident caused by yourself, for example, you are caught driving while using a cellphone. In addition to potentially not getting an overall repair, it also has the potential to not get a claim at all.
It hurts too, if the doctor's diagnosis is not convincing, the insurance will delay the time of the claim, until you provide strong evidence about the doctor's diagnosis.
Usually at the insurance office you can bargain to get a commensurate claim. But, of course, the maximum amount is adjusted to the amount of premium you chose from the start.
Liquid Claim
After a tough debate with the insurance company, and the claim signing is done, you only need to wait for the claim to be disbursed. No later than 7 days after filing a claim (for vehicle loss).
Things to Look For Before Applying for Unit-Link Insurance
Unit-link insurance is currently on the rise, this type of protection that can be used as an investment draws people's attention because it offers a lot of money.
Their promise is that within a few years of paying premiums, there will be additional profits for policyholders. But not a few also complained that it was just a promise.
Because in practice, the value of their investment never goes up and even the funds cannot be disbursed at all. That's why before buying uni link insurance there are several things that must be considered, namely:
Big unit link insurance risk
If all you have in mind about unit link insurance is profit alone, be prepared to be disappointed.
This unit-linked insurance scheme works where half of your funds are recorded in a savings book and the other half is invested in various high-risk instruments such as stocks, bonds and debt securities.
Not only the profit you get, you also have the potential to lose and lose all your money if the insurance company is not good at channeling funds to various investment products.
Cannot be considered as savings
Let's say you apply for unit-linked insurance with the hope that in the next 10 years you will disburse it and think you will earn big interest. But the reality is not that simple.
Because it is placed in a risky investment instrument, there may be a condition that you don't get a dime and even lose because by chance the stock price is falling. This is where the position of insurance that can not be used as savings.
Additional administration fee
Because your insurance gets an additional advantage, namely investment, it takes professionals in their field to manage your finances.
Now the cost of these financial professionals will be charged to the policyholder as a monthly administration fee.
Of course, this has an impact on the number of installments that swell, but the insurance value that will be obtained does not increase.
There is premium leave
The bias is that within 10 years you will get premium leave, ie not paying premiums within a certain period of time but the sum insured does not decrease.
But actually you still pay the premium every month, this money is taken from the investment profits that you have channeled to various instruments.
But because these benefits continue to be paid to cover premium leave. Then your investment cannot grow or be added.
