Guide to Determining the Right Types of Insurance

 Having insurance today is a common thing. The presence of insurance can be one of the optimal efforts in reducing risks that lead to losses, be it loss in the form of property, there are many kinds of insurance. Among the many types of insurance, several types of insurance are well known by the wider community, for example life insurance, health insurance, education insurance, to sharia insurance.

Choosing the Right Types of Insurance
Choosing the Right Types of Insurance

Before discussing more about the various types of insurance , it's good for you to know a basic understanding of insurance itself. 

The term insurance is taken from the English word, insurance which means coverage. In providing coverage in the various types of insurance available, it usually occurs in an agreement between two or more parties that aims to provide guarantees for the things promised.

The two parties who agree to the existence of the insurance are divided into the insurer and the insured. The insurer is a body or institution that is responsible for bearing the results of the agreement of the insured party. 

While the insured is a person or more who insures themselves and/or other elements in their lives to the insurer. Furthermore, after the agreement between the two parties regarding this insurance takes place, the insured party will later need to meet the requirements through a premium. 

The premium is a cost incurred by the insured on a regular basis to the insurer in order to keep the insurance agreement going well.

Get to know the different types of insurance

After understanding the basics of insurance, then you will find out why there are various types of insurance available today. 

The presence of various types of insurance available or offered as insurance products is intended to be able to meet the needs of everyone in maintaining what is considered valuable. 

The various categories of insurance are analyzed based on focus and risk to determine the policies or benefits that will be obtained by the customer or the insured party. So that you get a clearer picture, here are the various types of insurance that are currently available.

Life insurance

Life insurance is one of the most popular types of insurance. The purpose of life insurance is to provide financial strength to the insured party which will later be distributed to his heirs or family upon his death. As one of the many types of insurance available, life insurance can be intended for self-protection or for a third person. 

The claim or payment system of life insurance is also quite diverse. There are several insurance providers who provide insurance payments or claims after death. There are also insurance companies that provide an opportunity for the insured to make a claim before death.

Health Insurance

In addition to life insurance, health insurance is also one of the various types of insurance that are quite popular among the public. 

As the name implies, this insurance focuses on providing protection against the health of the customer or the insured. 

Generally, one of these types of insurance provides coverage in the form of financing from customers who need health care, such as treatment. Similar to life insurance, health insurance can also be provided for your own needs or for a third person.

Vehicle insurance

For those of you who have just started owning a private vehicle, maybe you need to consider the presence of vehicle insurance. One of the products from these various types of insurance is an underwriting service that is quite useful in providing protection for your vehicle. 

If you are the insured party using vehicle insurance services, you will basically benefit when you are injured in an accident or require repairs to your vehicle. In addition, vehicle insurance also provides protection that can be used as a payment for the loss of your personal vehicle.

Home and property insurance

Homes and other properties are one of the most valuable assets in your life. Therefore, home and property ownership insurance can be a good choice in maintaining the assets you have.

One of the various insurance products available today focuses on providing protection against loss or damage to your home or property. 

In addition, home and property ownership insurance also ensures that you provide relief from repair costs when your home or property is damaged by an accident, such as a fire.

Education insurance

Given that education is an important element and its costs are increasing every year, education insurance can be an alternative for you to ensure your child gets access and the best educational environment in the future. 

The premium that must be paid for one of the various insurance products available is also quite diverse, depending on the level of education you choose for your child's academic level in the future. Having education insurance will give you financial relief to meet your child's educational needs in the future.

General insurance

Other types of insurance that are quite popular among the people of Indonesia are general insurance. This general insurance is a measure of protection against loss or loss of benefits and legal liability to third parties. 

Unlike other types of insurance, general insurance usually has a relatively short term, usually one year. General insurance is also grouped into several types, including:

Social security (social insurance)

Social security is a type of insurance that must be owned by everyone in order to provide protection related to old age insurance. Social security is usually done when you work in a company. 

Premium payments for this social security generally deduct a few percent of the amount of your monthly income.

Voluntary insurance

As the name implies, this insurance is run voluntarily. Usually, voluntary insurance is still divided into two classifications, namely government insurance and commercial insurance. 

Government insurance is an insurance offered by the government to provide protection in people's lives. While commercial insurance is insurance that is often offered by insurance providers in order to provide protection to a person or family due to unexpected events.

Travel insurance

Travel insurance falls into the category of various types of short-term insurance. This insurance aims to provide protection for someone who is on a trip. 

The premium cost of this travel insurance is usually already listed in the travel costs that must be incurred, such as on a travel ticket. 

The premium paid can later be converted as a form of dependents in paying medical expenses or compensation due to travel accidents.

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