How to choose the right insurance product
December 18, 2018 Add Comment
Most people who are married, have insurance products become obligations that must be fulfilled. This is because if a family has insurance, whether it is for survival in the future or that is intended for health, it will not experience difficulties in carrying it out.
You have to choose the right insurance and adapt it to your needs, so that the insurance you use can be utilized properly and maximally, said the Executive Director of the Indonesian Life Insurance Association (Benny Waworuntu). Quoted from the official website cermati.com
For those who want to have insurance products, here are some ways to choose the right insurance for you and your family:
1. Make sure the Seller of the Insurance Product is a Licensed Agent
The first way, important tips to confirm whether the insurance seller is an official agent that has been registered or just a broker. What makes things like this important? if someone becomes an official agent then he will have a big responsibility for the insurance product he sells.
Moreover, it is responsible for the clients or participants who are the dependents. If the person is not an official agent and does not have certification, the motivation in selling insurance products will be questioned.
The most important thing is if he is a person who does not have experience in his field, chances are that you as his client will have difficulties if there is a claim because he cannot help you directly, and obviously this is very detrimental to you who have chosen insurance products that is.
How do we ensure that the insurance agent is official? For example in Indonesia, that is by asking about the membership of the AAJI (Indonesian Life Insurance Association). Every Indonesian official agent must have been registered and has an AAJI card that is either temporary or fully licensed.
So there is nothing wrong if you ask for their membership if you are offered an insurance product, to anticipate things that are not desired by you in the future. The most important thing is to ensure that the agent offering the insurance product will be able to help you in the event of a claim or taking care of administration and others.
If the agent is not licensed then the first impression that will appear to you is feeling doubtful about the agent's ability and credibility.
2. Get to know your needs and abilities first
Often you don't know the exact needs of buying something. Buying insurance products is not the same as buying tangible products (can be seen, touched) for example such as cars, houses and others. Because insurance products are basically intangible (can't be seen, touched), but the effect can be felt for life.
Therefore, early consideration is done carefully, because if you are not right in choosing the loss will be felt by yourself for life. Even so, you can stop at any time to close the insurance policy. But if this happens then the loss will await you.
When deciding to consider buying an insurance policy for a product from an insurance company, the first thing you do is determine your needs first, for example, as follows:
Rian has a family and has 2 children, he has a monthly income of Rp.3.5 million, he plans to buy insurance products to protect himself and his family. What products would be right for Rian and his family?
After an interview that Rian wanted: all family members when they died, all family members were protected or protected when they were sick to be hospitalized, all family members were protected when experiencing critical illness, all family members were protected when having an accident. On the other hand, Rian wants premiums that are not lost and even the value continues to increase.
Seeing Rian's needs, of course only with insurance products that can handle all those needs. But when he saw his income was only Rp.3.5 million per month, the important question that arose was how much money could be provided to pay premiums per month, after all the daily needs were met? okay at this point, just assume that Rian wants to save Rp500 thousand per month.
You need to know that life insurance contains basic insurance elements, namely death insurance and permanent disability insurance. So that all life insurance products can be assured of having a sum insured. It is certain that the other protection is only as additional insurance.
The essence of basic insurance and additional insurance has costs to be paid within a predetermined period of time.
Usually this fee will be deducted from the premium paid. This means that if we look at the problems faced by Rian above who want the cash value of the premium does not decrease, it means that there is an aspect of investment / savings from the desired insurance. So he had to sacrifice some of his desire to get all the protection.
If Rian wants all members of his family to be protected, then it can be ascertained that the monthly insurance costs will be higher and means that it will reduce the cash value obtained because the planned premium is only Rp500 thousand. Different if the premium paid is IDR 5 million, we can be sure all the desired protection can be obtained.
With the cash value decreasing due to the extra burden of additional insurance costs, it is feared that funds will not be sufficient until the specified time limit. It can even suffer a loss twice, the cash value is stopped protecting it.
If Rian wants the cash value of insurance to be more than protection then a good alternative way is to get rid of some additional protection, choose the right one, not include the entire family member in the insurance program but choose the one who really needs to be insured. So that later the investment that has been made will be felt optimally.
3. Get to know insurance companies that offer products
You don't need to be rushed and confused when buying insurance products, but also not too long, because insurance protection is very necessary in this unpredictable world, you don't know when you are sick or have an accident or even worse die. To determine the credibility of a company is not an easy matter, but the things below are worthy of attention.
The age of the company greatly determines the credibility of a company because it proves the existence of a company that continues to run in the face of various economic difficulties from time to time. It's just that often the age of the company is not directly proportional to service and product quality, because there are some that are old but are tied to the old management model so that eventually it doesn't develop, but at least this is the first thing you need to question.
Awards obtained, the credibility of a company is also supported by the company's ability to obtain awards. The involvement of insurance companies in the competition is very important because the insurance business base is services. So the commitment to serve customers well is proof of the company's sincerity in maintaining customer trust.
Capital, there are many opinions that non-local insurance is stronger compared to local insurance. This assumption is indeed not wrong but not right. Indeed, in reality there is local insurance that goes bankrupt because of capital that is not strong and only as a conglomerate of existing companies. But if we see not a few also local insurance companies that survive for a long period of time, even at any time can continue to exist.
4. Compare Products with Other Insurance
For this method, you usually volunteer to go to an insurance agent, because comparing the product is the right of the consumer, so it is better to get the best insurance product from the existing one. No need to rush, ask some insurance companies to make illustrations and start studying the insurance product. Of course the comparison made is inseparable from the knowledge of the previous tips, so that when getting the most appropriate insurance product it is the result of careful consideration.
5. Consider Well
By carefully studying a number of things that you should consider before choosing an insurance product that will be used, it will certainly help you choose the right insurance product and according to your needs. For this reason, consider well before choosing.