4 Reasons Why You Need To Have Insurance


In running life, we can not escape from risk. If we are now healthy, someday we may fall ill, so will the age of humans who have a deadline. The same is true of goods or assets that we own, such as cars or homes.


Various risks that include life both that can happen to ourselves and to the assets that we have, often also cause financial or financial impact. For example, when you suddenly fall ill and require medical expenses to go to the hospital, like it or not you have to pay a number of health costs. Likewise, when your car suddenly stalled because the engine has a problem, like it or not you have to spend to get service from a customer repair shop.

Costs incurred are included in the category of financial risk. If the costs involved can still be borne by your emergency funds, that might not be a problem. However, often what happens, the costs incurred turned out to be far greater than the emergency funds prepared.

You will often find stories where a person falls ill and costs so much that he must be willing to sell his assets. This is called financial risk. In fact, you can manage these risks better through insurance products.

Through insurance, you transfer the financial risk to a third party, namely the insurance company. So, when a risk occurs later, the costs associated with the risk are borne by the insurance provider. To get these insurance benefits, you only need to pay a premium in accordance with the provisions of the insurance policy that you buy.

But, right, if there is no risk, the premium will be forfeited and wasteful? Maybe that thought was shared by many Indonesians. Basically, yes, there is no waste because the premium you pay is likely to be far less than the benefits you can get later when financial losses occur. Through insurance, you can better control the risk of loss in the form of fixed premiums.

If so important is the existence of insurance to support financial management okay, what are the benefits of health insurance that we need to understand? The following is for a more detailed explanation

1. Reducing financial risk

As explained above, every time we face various risks that can give birth to financial losses. For example, falling ill to drain medical expenses, and so on.

By having insurance, you can manage finances more calmly. So that at any time you need money or financial losses, personal financial condition is not affected because there is insurance to cover it.

You do not need to worry if at any time something unexpected happens such as illness or an accident. This insurance benefit helps you in reducing unexpected expenses. Daily routine expenses are not disrupted. Because, there is a guarantor who gives compensation.

2. More freely invest

Good financial management should pay attention to the adequacy of two things, namely emergency funds and life insurance as well as health insurance. After the two main posts are safe, you can be free to start preparations for the future by investing in financial products. For example in mutual funds, stocks, or bonds.

What if you first invest in conditions that do not have emergency funds and insurance? This is not recommended by financial planners. Why? Investing has a risk that is equivalent to the prospect of return or profit.

If profits are obtained, then that doesn't matter. However, if what happens is a loss, where it is open enough to happen, you might run out of money and get into debt or loan problems.

3. Can at the same time save or investment (but must be observant in choosing a product)

There are several insurance functions that provide investment or savings services for the future. You who have been registered as a customer of an insurance service provider can get a guarantee in the form of return on investment at the end of the contract.

In insurance that is intended for investment there is a period of coverage that is flexible. There are three coverage periods that you can choose from 5 years, 10 years, and 20 years. That's when you have a commitment to pay a premium while investing.

However, before deciding to choose a useful insurance product or unit link like that, always calculate the premium you pay and the benefits you will receive. Do not let you pay too much premium but little benefit you receive.


4. Sign of love for family

When you have dependents like a child or spouse, you certainly want their lives to always be prosperous, at least financially. You can express your love for your family by buying a life insurance policy, one of the priority insurance products that needs to be owned by the breadwinner.

With life insurance, when there is a risk of dying to the breadwinner, the family left behind does not need to bear financial difficulties due to the cessation of income.

Provision of life insurance money can be used as provision to continue the life of the family left behind. After life insurance, health insurance and education insurance are insurance products that every family needs to have to protect their financial goals.


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