According To Needs And Ability To Pay, Here's How To Choose The Right Insurance

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JAKARTA - As people get older, many people begin to realize the importance of applying for insurance. The reasons are various, ranging from awareness regarding the risk of disease that can occur at any time, accidents, to death. Although the government has provided BPJS health services, through insurance, various risks and problems in life can be anticipated, especially related to the large financial burden that must be borne to overcome them.

However, there are still not many people who understand how to choose the right insurance product. As a result, some customers may apply for insurance with premiums that are too expensive, or the protection benefits tend to be suboptimal.

Well, to anticipate this, you need to find out how to choose the right insurance product, as well as how to use it. Here are tips for choosing insurance that suits your needs and ability to pay so that the benefits can be obtained optimally.

1. Know in advance what kind of protection is needed

In choosing insurance, be sure to adjust it to the benefits of protection needed. This is important to understand because in fact, not a few people choose insurance because they are interested in promos and prizes that can be obtained. In addition, because they do not pay attention to the needs of themselves and their families, some insurance customers also apply for these products from scratch.

If necessary, so as not to make the wrong choice, first consult with parties who understand insurance and how it works. Especially before choosing health or life insurance. That way, you can assess which insurance product is worth choosing because it is able to meet all needs at an affordable premium cost.

2. Check Insurance Agent Professionalism

Insurance offers often come from agents or sales. Do not just accept the invitation to apply for insurance, you need to first ensure the professionalism of the agent. The reason is, not a few agents or insurance sales do not even understand the benefits and drawbacks of the products they offer.

In addition, make sure the agent is able to assist you in taking care of the insurance application from start to finish. To ensure the professionalism and quality of the agent's performance, you can ask him to show his agency certification and explain in detail about the insurance products offered.

3. Learn More about Insurance Provider Capacity

No less important, you also have to know more about the capacity of the insurance provider. Specifically regarding the coverage of protection provided, the ease of processing benefit claims, and various other services and features. Information related to the capacity of this insurance provider can be easily obtained via the internet or by relatives who have become customers.

4. Fill in the SPPA or SPAJ honestly, completely, and clearly

In applying for any type of insurance, prospective customers are required to fill out a document called an SPPA or a letter of request for insurance coverage, as well as an SPAJ or a letter of application for life insurance. The file must be filled in honestly, completely, and clearly by the prospective customer.

The reason is, that the information in it will be used as consideration by the insurance company regarding the services that will be provided. If there is only one piece of information that is blank or filled in dishonestly, it is likely that the insurance application will be rejected or can make the protection claim process difficult in the future.

5. Understand the Premium and Nominal Payment Process

No less important, also know the time or maturity required to pay premiums. In order to still get insurance benefits and avoid the risk of paying fines, make sure to always pay them on time.

Also, check whether the cost of the premium can be borne by the finances smoothly or not. Ideally, the insurance budget is around 5 to 10 percent of salary so that other important needs can still be met smoothly.

Usually, there are about 14 days for insurance customers to reconsider whether the product is worth preparing or not. Be sure to take advantage of this moment to assess the feasibility and suitability of the protection benefits provided by insurance with the premium costs.

6. Ensure the Credibility and Legality of the Insurance Company

The last thing to ensure when choosing insurance is to ensure the credibility and legality of the provider company. One of the main characteristics of an official and trusted insurance company is having a registered status and a business license from the OJK or the Financial Services Authority and associations. To check it, you can see the OJK official website or ask the customer service directly.

In addition, if you want to be more convincing, check the financial condition of the insurance company and make sure the conditions are conducive. This can be indicated by a Risk Base Capital value of at least 120 percent, as well as the condition of its liabilities and assets which can be identified through financial reports published by the media.

Always Pay Attention to Financial Needs and Conditions when Choosing Insurance

Apart from the tips and how to choose insurance above, you must pay attention to what kind of protection is needed and make sure your financial condition is able to bear the premium costs.

That way, then the insurance product that you choose can provide optimal protection benefits without excessively disrupting financial flows.