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8 Important Benefits of Insurance for the Community

8 Important Benefits of Insurance for the Community

In life nothing is done without risk. Every time you do a job or own goods, even in your daily activities, there is a risk. Like the risk of an accident at work, the risk of losing things, the risk of falling ill at an unexpected time. The existence of this risk makes us worry because the risks that exist are closely related to the losses that will be experienced. So that makes most people want to have protection in the event of a loss due to an unexpected disaster.

Currently there is a protection service from possible risks that occur in the future, which is called insurance. Insurance has a way of working as protection not to prevent someone from being free from a risk but to help replace losses caused by unexpected disasters or damage. Insurance will be responsible by recognizing three mechanisms

  • The premium is the designation of the payment obligation that must be made.
  • The policy is a contractual agreement that contains everything that will be borne by the insurance service provider.
  • Claims are requests for compensation that have been experienced.

From the mechanism above, there are risk criteria that will be borne by the insurer, these criteria must be understood first before choosing an insurance service so that you get the right risk protection service as needed. The types of insurance that exist generally include

  • Health insurance that protects against the possibility of falling ill in the future
  • Life insurance that will provide benefits in the event of death of the person taking the insurance.
  • Vehicle Insurance that will provide compensation if the vehicle is in an accident or stolen.
  • Education Insurance, education insurance benefits will provide an alternative and education guarantee for the insured person.
  • Travel Insurance will provide protection and compensation in the event of an accident during the trip.
  • Credit Insurance will protect credit activities if the debtor fails to pay off his debt.
  • Home insurance will provide protection and compensation in the event of a disaster at home such as a fire.

Of the types of insurance above, there are many institutions that provide insurance programs as well as various kinds of advantages and benefits in general. The benefits of insurance for customers who use insurance are as follows.

Provide protection
Insurance will cover all losses that you have incurred to the insurance provider, so it is very clear that participating in an insurance program will provide protection. The protection in question is protection to get help if an unwanted problem occurs. An example of using vehicle insurance will get you financial assistance in the event of unexpected damage from an accident or loss due to accidents

Reducing the risk of loss
If an unexpected problem or disaster occurs that makes you suffer a lot of losses, if you don't join the insurance program, you will bear all the burden of the loss. If you take part in an insurance program, you will receive insurance benefits to cover some or even all of the losses that you experience due to an unexpected disaster.

From the two examples of insurance benefits for users above, there are benefits obtained by insurance for the community in general, namely

1. Companion social security program

Indonesia as a country that guarantees people's welfare. The government creates a social security program for all people in need. So far, the social security program has been provided free of charge and the burden of the program has been on the state budget, however, with increasing public awareness and ability to take part in the insurance program, social welfare issues have begun to show development because the community has been able to use insurance so that the burden of funds in the state budget for social security programs will be reduced.

2. Creating Jobs

Until now, unemployment is a social problem that must be handled properly. Through various programs that have been carried out by the government, there are still many unemployed people with fresh graduates who are always increasing every year. The existence of an insurance service institution will absorb the surrounding workforce. This is an important benefit because insurance services when setting up a branch service office will require labor, besides that workers in marketing and insurance consultants often require more workers such as offering jobs as insurance agents so this will help reduce unemployment.

3. Investment

Insurance that offers benefits and assistance to protect against future risks can be used as a way of investment for the wider community. Insurance users in general will pay obligations according to premiums so that users set aside money regularly and the money collected will become a future investment. If while using insurance it turns out that no disaster has been experienced or not claimed, then the insurance money can be returned according to the conditions set at that time.

 4. Provide Health Protection

Further benefits come from the existence of health insurance which guarantees health services for users so that if many people use health insurance then when they fall sick they will get proper health services, so far the government has provided people from certain classes to get health insurance for free. On the other hand, people who are not recipients of government health insurance will use health insurance. The benefits of Health Insurance are providing proper health services so as to increase the life chances of Indonesian people.

5. Minimizing Losses

The benefits of using insurance can minimize any losses experienced by the community from several disasters that can occur. This can be assumed when a lot of people use asset protection insurance services and then when an unexpected disaster occurs, the losses experienced by the community will be borne by the service provider so that they are no longer worried about the damage to their assets. Protection that can be minimized is a general insurance benefit and can be applied to users and the general public.

6. Source of funds

Insurance companies in the community can provide a source of funds for startup businesses. Benefits as a source of funds are associated with the ability of insurance companies to also channel some of the funds for development carried out by the government. In addition to providing funds, insurance companies will offer credit protection services for these companies so that when there is a failure to pay off debts, they can be covered by insurance.

7. As an added value

The general public who wish to apply for credit secured by assets or property such as houses or vehicles will have added value if the assets pledged to the bank have insurance. The existence of this insurance will make the bank have a small risk of loss because the collateralized assets are damaged, this will be the responsibility of the insurance provider.

8. Appreciation for the working community

A company that absorbs a lot of workers is currently required to enroll each of its workers in an insurance program. This has benefits for workers as protection in the event of a work accident and as a reward for contributing to the company. The company will also benefit in this case by having a good image in the eyes of the public because it has guaranteed its workers with an insurance program.

From some of the explanations above, insurance has many benefits for good in the future. So don't hesitate to start joining an insurance program.

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