Know the Types of Insurance for Your Needs

Posted on

Certainly, many individuals are familiar with the term “insurance.” Even if “insurance” is currently a common term, the majority of Indonesians still lack it.
According to data from the Financial Services Authority (OJK), Indonesians still have a limited grasp of and usage for insurance.

This is demonstrated by the degree to which Indonesians have purchased insurance. According to OJK data cited by Bisnis Indonesia in July 2021, the penetration rate for insurance in 2019 was 2.81%. By June 2021, this number will have risen to 3.11% from 2.92% in June 2020.

The public’s ignorance of the insurance claim process and the policy purchase process is to blame for this problem. The numerous forms of insurance that insurance firms provide is another factor. As a result, many consumers, particularly those who are unfamiliar with insurance, struggle to appreciate the advantages of each insurance product.

Let’s first learn what insurance is in order to discover its advantages. According to the OJK website, insurance is a contract between people and insurance service providers (also known as insurers) (as policy holders).

Insurance services’ and policyholders’ rights and responsibilities have been regulated. where the policyholder is entitled to protection from insurance service providers for compensation for loss, damage, and death. However, when the policyholder fulfills the requirement to pay premiums to the insurance provider, the right will be acquired.

In general, insurance provides good advantages in reducing the risk of unforeseen uncertainty.

There are at least five insurance benefits available to you, including:

1.Shield your income from unforeseen threats.

2.Save money to accomplish future goals; keep it safe.

3.When death does happen, safeguard the family’s future.

4.safeguarding one’s bodily and emotional health in case of accident risk.

5.offers protection from investments in the future.

Before picking and paying for a policy, identify the many types of insurance that are available so that the insurance benefits are as you anticipate.