Various risks that include life both of which can occur 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 some health costs.
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 following the provisions of the insurance policy that you buy. 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, the 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. Can simultaneously save or invest (but must be careful when choosing products)
Several insurance functions 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 commit to paying 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.