Types of Insurance – Simply put insurance is an agreement that applies between two parties. One party will be obliged to pay a sum of money or premium, while the other party will bear the risk.
In general, the greater the premium paid, the more protection the insured will receive. As is well known that there are many types of insurance in Indonesia. This is because not all insurance benefits everyone. Insurance is only useful for those who are really in a condition that has a big risk.
So insurance must be in accordance with the needs and objectives. For example, home or property insurance will have benefits for someone who is still renting a house. Therefore if someone does not have a high risk of loss then you should not buy insurance that provides protection for that risk. This time we will provide information about the types of insurance in Indonesia that you need to know. The explanation is below.
1. Life insurance
Life insurance is important to have. If you have people who depend financially on you. If you die unexpectedly, then if you are no longer able to cover ordinary household expenses, such as paying electricity bills, paying for daily needs. Then it can be ensured that your family will suffer financial hardship, as a result the point of life insurance is designed to cover these costs during your absence, and to alleviate the financial burden experienced by your family at a very difficult time when you were left behind.
Most insurance companies recommend that you take cover about 10 times your annual income. When calculating exactly how much coverage you need you need to take into account rent payments and other living expenses such as loan and credit card payments, there are two main types of life insurance policies that you can choose from, namely lifetime and term policies. For a lifetime policy you will pay for the policy until you die. The risk that can be protected from life insurance is death and a condition where you can not make a living anymore. Of course, by completing yourself with life insurance, then you will be more calm through life and do not need to worry about financial problems.
2. Health insurance
This is a type of insurance that is popular in Indonesia. There are many people who use public health insurance, especially workers. What will be covered by health insurance are all risks related to health. In general, medium to large scale companies always provide health insurance to each employee. There is a health insurance in the form of outpatient inpatient but there is also only cover inpatient only.
In addition to getting from a company where health insurance works, it can also be owned individually for yourself or family. Almost all insurance companies must have insurance like this. As for the risks covered by health insurance there are various kinds such as illness, injury, death resulting from work accidents. The benefit that can be taken from this health insurance is the existence of full or partial cost compensation due to experiencing health-related risks.
3. Vehicle insurance
For those who do not have a vehicle certainly do not need to buy this type. The most insured vehicle is usually a car. This vehicle insurance itself has a risk protection function for an event that occurs in a vehicle that has been insured. For car insurance there are two types, namely total loss only insurance and all risk. TLO Insurance will only protect from the risk of loss or total damage to the vehicle. If your car only has blisters or minor damage then we will not be covered by total loss only insurance. As for the type of insurance all risk will cover all the losses that may occur including small blisters on your car in general, the type of total loss only insurance is more widely used for old cars. All risk insurance is usually used for new cars, especially if the purchase is made on credit.
4. Property insurance
Houses are valued as valuable assets and therefore many people will protect their homes and assets with this property insurance. Property insurance will provide protection for the risk of loss or damage that can occur on the personal items of the insured. In addition to property houses that can be protected with this insurance is a building. If your property is in a location that is prone to theft or fire insurance, you need to consider. By owning this property insurance, you will receive compensation benefits due to risks to the property.
5. Travel insurance
The next type of insurance is travel insurance. This insurance is very useful for those who have a hobby of traveling. This is a protection service for risks that can occur when someone is on a trip. In a number of countries such as Europe they require people who will enter the country to have travel insurance. If you do not have this trip then a visa to go to that country will not be issued. Risks that may occur while traveling, for example, your bag is suddenly lost when at the airport when going abroad, your flight is delayed, or more serious events such as you suddenly get sick during a vacation or an accident. The benefit you can take from this travel insurance is that the costs for the loss you experience become lighter.
6. Business insurance
The next types of insurance in Indonesia are business insurance. Business insurance can be owned by business owners. Starting from the micro class to multinational corporation companies. Business insurance will provide protection to business assets ranging from work tools to employees from the risks that befall those assets. Employees will usually get health insurance. The benefits that you can get as a business owner by having this business insurance is to be able to prevent action if your business is substandard and it can also be an attraction for employees who will work in your company.
7. Educational insurance
One thing that is important for the future is education. For this reason there is what is called education insurance in Indonesia. This education insurance will provide benefits that will protect certainty about the education of children in a family. With the high cost of education which is increasing every year resulting in insurance education is much in demand by the community. This education insurance can also be used for children’s education plans ranging from low to highest levels of education or abroad. When you have this education insurance, the expenses for children’s education become lighter and more planned.
8. Disability insurance
This type of insurance does not seem to be always needed for all people with disability insurance is insurance that provides protection for someone from a risk that causes a person to become disabled or disabled. Those who most need this insurance are those who work at high risk. If the police owner suddenly experiences an incident that causes him to become disabled then he will receive an insurance sum for his financial protection.
9. Marine Insurance
This insurance is insurance that is related to all activities at sea, such as shipping logistics by ship. If the ship owner has a marine insurance policy then the activity is protected. Likewise with those who work as fishermen. The fishermen will get insurance that was launched by the government specifically for fishermen when fishing. This will also protect against unforeseen natural risks that make it difficult for fishermen to go to sea due to storms.
10. Credit insurance
Knowing other types of insurance in Indonesia, this is a type of insurance that will protect two parties, namely the policy owner and the bank that distributes credit point credit insurance is insurance that will protect a person or business entity from the risk of being unable to pay or pay off credit. It usually happens for bad credit that befell the borrower. This insurance company will provide insurance money to the borrower to pay off the credit, but there is also only a part because it all depends on the policy that has been purchased. With this insurance the credit policy holder will be slightly raised and the bank will also receive repayment of the credit.
11. Pension fund insurance
This insurance is insurance that will protect the actual retirement. This is not purely a service provided by an insurance company. Apart from insurance, there are also financial institutions that have this type of insurance, for example Bank Rakyat Indonesia. The benefit that can be taken from this pension insurance is ah ah when retirement arrives then it will certainly be sufficient in living life.
Now that’s the types of insurance in Indonesia that you might need to know. Usually insurance companies will offer more than one type of insurance, but many also only focus on certain types of insurance. Make sure you buy insurance at an insurance company registered with OJK.
Protect yourself and your family immediately with health insurance before it’s too late!