10 Benefits of Participating in Life Insurance
Insurance is a form of risk control that is carried out by transferring risk from one party to an insurance company.
The benefits of using insurance have many benefits depending on the type, of course the main benefit is to provide protection and minimize the risk that threatens at any time that is potentially harmful.
One type of insurance that can be chosen is life insurance. According to AAJI (Indonesian Life Insurance Association), life insurance is a protection program in the form of economic risk for the death or life of an insured person. This life insurance is in the form of a written protection contract or policy.
The policy contains an agreement that has been approved by the policy owner and the insurance company. The policy owner will be required to pay premiums periodically to benefit from the provisions written in the selected life insurance policy.
The following are some of the benefits of life insurance that you will get if you follow life insurance services.
1. Protection from the risk of death
Death is an unpredictable event, therefore it is important to have life insurance because you get protection for the accident from the life insurance that you follow.
For example, someone who acts as the head of the family or the backbone of the family has an accident and dies, then the source of income for the family will automatically disappear.
By having life insurance, the insurance company can pay coverage according to the applicable policy, so that the policyholder's family still gets a temporary source of income.
2. Compensation for permanent total disability or partial disability
Various unpredictable disasters can threaten anyone, such as the occurrence of permanent total permanent disability or partial disability. Life insurance against this disaster will help to provide coverage for the risk of the disaster.
The life insurance company will pay the insurance benefits (100% of the sum insured or according to the agreed policy) and then the insurance will end if the insured suffers total permanent disability due to an accident. Generally, the amount of coverage will be provided with a lump sum payment system.
3. Help manage finances more planned
In preparing a healthy family financial plan, life insurance is an important part that must be included in the plan. Unexpected risks in the future can be protected by a more stable financial condition using life insurance.
By following life insurance, indirectly, you will be forced to commit to leaving a nominal amount of income in order to be able to pay for life insurance in a disciplined manner.
In other words, it will be more efficient and wise in managing income and expenses.
4. Manage finances properly
Managing finances properly is certainly financial planning for the future too, so life insurance will be very helpful in this case because it will help allocate funds for the future.
If you have a lifestyle that tends to be extravagant, then life insurance can help you save and set aside some of your income to pay insurance premiums on a regular basis.
Of course, this is more useful because you can get insurance benefits to prevent various financial losses in the future. So that it can be considered immediately for the sake of yourself and your family.
5. Prevent the risk of big losses
The next benefit of life insurance is to help minimize the risk of loss or prevent the risk of a large loss. The insurer will be played by the insurance with the amount of money that will be given in accordance with the agreed policy.
Therefore, there is no need to worry about financial conditions if the policyholder experiences a critical illness because they can focus more on healing physical losses. Or if you want to focus more on preventing big losses, you can use loss insurance.
6. Preparing for retirement
When entering retirement, of course, you don't want to think about many burdensome things. So having life insurance will help policyholders to accumulate retirement preparation funds.
Life insurance can also be used as a means of saving, so it will help prepare for retirement. Thus retirement will be calmer and safer.
7. Ensure the survival of the family or heirs
Life insurance plays an important role in ensuring the survival of other family members if the head of the family is not helped. This will certainly help prepare the future family members of the policyholder financially, such as the continuity of costs in educating children and family life in a safer future.
Purchasing life insurance protects family and loved ones from the risk of financial loss and reduces the burden on loved ones, which can be difficult for heirs. Therefore, the advantage of life insurance is to maintain the continuity of family ownership or property.
8. Gives a sense of calm and security
There is no disaster such as an accident or death that can be predicted with certainty, so having life insurance means preparing to deal with all possible disasters that can occur.
In other words, it will provide a sense of calm and security because there is life insurance that will cover financial losses. The family will also feel calm and safe from this life insurance.
9. Additional benefits that can be obtained in the form of investment
Then specifically for unit-linked life insurance products, policyholders can not only pay insurance premiums but also get life insurance benefits in the form of capital participation.
Therefore, the insurance amount paid to the heirs will be added to the investment return that the policyholder has.
However, the benefits of this investment are only one option. If the policyholder wants protection focused on overall performance, then pure life insurance may be a better choice.
10. Ensure that other long-term needs are more organized
Everyone has plans for long-term needs, such as the cost of children's education and the cost of caring for a retired parent. To manage unwanted risks, all parents can certainly consider life insurance products.
For the future of the family, generally the goal is to be able to receive life insurance claims for children's education. If you want to focus more on that goal, parents can use education insurance products.
Life insurance not only helps in covering the child's education, but also to meet the needs of loved ones.
For example, in the event of a disaster or other unwanted risk. The life of a retired parent can be covered by compensation from life insurance.
There are many benefits that can be obtained by taking life insurance. Preparing everything in advance before the risk of unwanted things will certainly be a better thing for financial conditions.
So taking life insurance would be better to help minimize all the risks that exist. Consider carefully before choosing each insurance product.
Make sure it is in accordance with the financial plan, the benefits obtained, and consideration of the risks that may occur in the future.