Many people feel they do not need insurance. However, insurance is a financial safety net. Without insurance, your personal financial condition can easily be shaken if a financial risk occurs.
In addition, choosing the types of insurance that are suitable for you is also not an easy thing. You must be able to consider various factors, such as the premium price to be paid, the benefits received, and whether the protection is suitable for your needs.
What is Insurance, Why is it Important?
Insurance is an agreement between the Insurer (the insurance company) and the Insured (the customer whose risk is borne).
The agreement states that the insured is obliged to pay contributions (premiums) to the insurer, and if there is a financial risk, the insurer will give a large amount of sum insured to the insured. All of this is regulated in the insurance policy.
Insurance is important because its function is to transfer financial risks that might happen to you. That way, you don't need to have liquid funds other than an emergency fund. Insurance also guarantees the economic stability of the individual who has it.
7 Types of Insurance You May Need
There are various types of insurance. However, the type of insurance needed depends on various factors. For example, age, marital status, and the risks you have to bear.
We will explain the following 7 types of basic insurance.
1. Health Insurance
Health insurance is insurance that covers health risks, such as hospital bills. This type of insurance is considered one of the basic insurances that all groups must have. Because anyone, young or old, can be at risk for disease.
Health insurance benefits can be in the form of :
- Reimbursement of outpatient bills;
- Daily compensation for hospitalization costs;
- Coverage for operating costs;
- Coverage for death.
Suitable for : Everyone.
Of course, there are various types of health insurance. Therefore, you must first study which health insurance is right for you.
2. Life Insurance
Life insurance is a type of insurance that covers the risk of death. Everyone will definitely die one day. However, the risk of sudden death, especially to the breadwinner, can result in a loss of income for a family.
Therefore, the function of life insurance is to provide financial support if a person can no longer support his family, whether due to death or otherwise.
Life insurance benefits can be in the form of :
- Money given when there is a risk of death, or
- Money given if the Insured is no longer able to work due to the risk of Total and Permanent Disability.
Suitable for : You who are married, Breadwinners.
3. Education Insurance
Education insurance is insurance that guarantees the provision of money for your child's schooling. Because education continues to increase, there's nothing wrong with you starting planning with education insurance.
Benefits provided:
- Cash at a set time, usually it can be arranged according to when your child starts school.
Best Suited For : New parents, couples with kids.
4. Accident Insurance
Personal accident insurance is insurance that covers the financial risk of an accident, whether it's operating bills or coverage for accidental death. Usually this accident insurance only covers people, not vehicles.
Benefits provided :
- Cash for the risk of death due to an accident;
- Reimbursement of operating costs or other hospital bills due to injury.
Suitable for : Young people, especially those who often travel or ride motorbikes.
5. Travel Insurance
Travel insurance is insurance that protects you from the risks that exist while on a trip. This insurance is usually paid only once, not routinely per month like other insurances.
In addition, usually this one insurance is included in a package with the travel ticket that you bought. Whether it's a plane or a train, of course there are options with travel insurance.
Benefits:
- Guarantees for the safety of baggage;
- Guaranteed on-time departure;
- Cash if there is a risk of an accident;
- Reimbursement of emergency medical expenses.
Suitable for : You who need to travel far.
6. Vehicle Insurance
Vehicle insurance is a general type of insurance that protects the financial risks of your personal vehicle. Whether it's a car or motorbike.
Usually this vehicle insurance is offered together with the purchase of a vehicle. However, you can also buy them separately to weigh which one suits your needs.
The benefits provided are in the form of coverage for vehicle damage costs for :
- Accident risk;
- Risk of burglary / theft;
- Risk of natural disasters (floods, hail, and others);
- Risk of terrorism, riots, riots, and others.
Suitable for : Owners of private vehicles.
7. Critical Illness Insurance
Critical illness insurance is a type of insurance that protects you from the risk of critical illness, such as cancer, heart attack and stroke. Unlike health insurance, critical illness insurance only protects you from certain risks of illness.
Usually the coverage is in the form of a large amount of cash given at once (lump sum payment) or full coverage of medical expenses until recovered.
These benefits are provided when :
- The insured is diagnosed with a critical illness;
- The insured must undergo critical illness treatment;
- The insured dies due to a critical illness.
Suitable for : You who have major risk factors for critical illness, especially if there is a family history. Even though you are young, you can anticipate heart attacks, stroke symptoms, and cancer.
So how? Have you found the right insurance for you? Share if you find this article useful.
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