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10 Roles of Insurance in General, and Its Benefits

Millennials increasingly understand the importance of financial protection from disease. As a result, many began to consider buying insurance products. But among the many people who are literate in this health investment, many are wondering what the importance of insurance is. To answer this question, consider what the role of insurance is in the following review.

Insurance Role

1. The Role of Insurance for Society and Individuals

The benefit of insurance for the community or individual is to transfer financial risk as a form of protection for oneself and one’s family. Another role is to make individuals become accustomed to managing finances.
Good financial management itself can lead the individual to prepare for a financially free future. In addition, insurance is useful as a cross-subsidies between one person and another. Given that the premium money paid can also be used for the care of others.

2. The Role of Insurance for Companies or the Business World

Not provide direct benefits to the community, insurance also has a role for companies or the business world. This role can be felt by employees who are insured through the BPJS Employment program or through private companies. For employees, they will get maximum health care.
This allows employees to be productive again, and improves company performance. Even the loyalty of insured employees can also increase, because they feel more cared for by employees. So that the company can maintain one of the important assets of the business or in this case the workers.
On the other hand, the company itself is actually much more efficient and saves on insurance products. Because organizations no longer need to take full responsibility for managing employee health funds. Moreover, the premiums deposited can also be cross-managed by the insurance company.

3. The Role of Insurance for the Economy

Role can also be seen for the state and the nation’s economy. Although it is not directly felt, the existence of active people with insurance in a country can actually make the state order better.
You may be wondering, why is that so.
So, this insurance can be a source of capital for development because the funds deposited will be managed in certain instruments. In addition, insurance is also a source of state income and taxes that can be used for several state needs.
Insurance that can reduce the number of unemployed as well as prevent the nation from backwardness. This is because people are used to managing their money to avoid certain financial risks. As a result, people will not feel surprised if one day the country is forced to experience inflation or even a recession.

Insurance Benefits By Type

1. Health Insurance

If one day you fall sick, then the role of health insurance will be seen in Because the cost of health bills that continue to soar can be covered if you have health insurance products. Which health insurance itself does provide benefits in the form of coverage for hospital health costs.
However, the cost of coverage provided by the insurance provider company can usually vary, depending on the product chosen by the policyholder. For example, there are those who cover outpatient care, inpatient care, as well as ICU care. The amount of coverage given can also be different depending on the policy you choose.

2. Life Insurance

Life insurance is arguably one of the most basic types of insurance, where the benefit is to protect the life of the insured from the risk of death. More precisely, this product is intended for people who bear unexpected financial losses due to the risk of death or the risk of living too long.
The use of life insurance products can provide benefits to policyholders to replace the government’s social safety net program. Reason for use This insurance helps to maintain the stability of society as well as being a source of finance. Many people also make this insurance product as an inheritance to their wife or children if they later die.
The person who acts as the insured on a life insurance policy is usually the head of the family or the breadwinner of the family. So that after the only breadwinner in a family dies, the family left behind will not experience financial difficulties to survive day to day.

3. Education Insurance

Education insurance products provide benefits in the form of guaranteed education costs for children up to college level. But of course it also depends on the education insurance product you choose.
Interestingly, usually various education insurance products have taken into account the factor of increasing education costs. This is certainly an important thing to help parents prepare for inflation in the cost of education per year. that education is getting higher day by day it seems the cost is getting higher, of course the product is worth considering.

4. Travel Insurance

Generally, travel insurance can be provided together with the purchase of transportation tickets such as planes, trains, or ships. The purpose of travel insurance is to provide various types of compensation for the risks that occur when you are traveling. For example travel delays, risk of accidents, to loss or damage to baggage. And this product only works during the trip.

5. Vehicle Insurance

Not only humans, exclusive items such as motorized vehicles that are not cheap can also be insured. The role of this insurance is to compensate for damage to the vehicle you have in the event of a risk, be it an accident or burglary and so on.
The benefits of this product are focused on the vehicle you own. So even if the driver or passenger of the vehicle is not injured Even in an accident, the benefits of vehicle insurance can still be felt. This guarantee can be purchased separately or together with the purchase of the related vehicle.

6. Personal Accident Insurance

Personal accident insurance products can help protect you from the risk of accidents that can occur. Like life insurance, the benefits can be in the form of sum assured if there is a risk of total and permanent disability or death due to an accident. But the benefits can also be in the form of medical costs and treatment for accidents that occur.

7. Property Insurance

Although less popular in the country, the role of property insurance of course still has its own fans. Because important assets such as houses or buildings that are owned now are also considered necessary to get more protection. So you will get a guarantee of compensation in the event of a disaster that can result in the loss or damage of the property’s assets.
Although it has an important role, insurance is different from which role or benefits you can see in the review above. However, of course you can’t just rely on insurance for financial provisions in the future. But it is also important to carry out saving activities and various other investments, to be financially free.