Difference Between Life Insurance And General Insurance – infomediaku.net
Insurance, this term is friendly enough we hear in everyday life. The progress of the times accompanied by advances in education made some people aware of the importance of insurance for their lives.
Insurance benefits on average emphasize the security or protection of clients against risks that can have a negative impact on finances.
No doubt, insurance companies are innovating in marketing their newest products. Some clients sometimes complain that insurance products are not what they expected.
This incident was not entirely the fault of the insurance company. It could be that the client himself does not understand the company’s insurance product.
There are two insurance products that are generally often offered. What are they? Here is the explanation.
Difference Between Life Insurance and General Insurance
1. Life Insurance
This insurance product focuses on client or customer protection. If at any time the client dies (due to an accident or health problem), the family will receive an amount according to the coverage scheme at the beginning of the agreement.
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Life insurance is grouped into three, namely:
a) Lifetime Insurance (Whole Life)
This life insurance provides protection until the client’s age reaches 99 years. The advantage of this insurance is in the nominal cash which continues to increase even though the premium payment period has ended or has expired.
b) Term Insurance
The only insurance that has no nominal cash and has an annual deadline. The drawback is that the premium money cannot be taken if the period runs out. In addition, term insurance is the only one that does not have a savings feature compared to the other three types of life insurance.
However, term insurance has advantages, namely:
- Affordable PremiumDue to the pervasive nature of premiums, this insurance price is very affordable.
- The sum insured paid is quite largeThe nominal paid by this insurance is almost similar to other types of insurance.
- The Protection Period is Free and Can Be Adjusted
Protection deadlines can be adjusted according to client needs. Starting from 1-70 years. What must be remembered when setting deadlines, consider the risk protection that is prioritized when you are entering the productive period at work.
c) Endowment Insurance
Insurance that provides benefits in the form of cash payments within a specified period according to the agreed agreement. For example, education insurance and pension fund insurance.
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2. General Insurance
In fact, general insurance is not too different from life insurance. It’s just that the object that is protected is wider, not just limited to death. In addition, in terms of insurance payments to clients, it is imposed in the form of money and some in the form of compensation.
In general insurance, you are not only limited to life protection, but property or inanimate objects can also be insured, such as vehicles, buildings, and others. Based on the object, general insurance can be divided into two:
a) Air and Sea Insurance
Provides insurance coverage against the risk of accidents that occur on land and at sea.
b) Non-Air and Marine Insurance
Includes property insurance, personal accident insurance, health insurance, fire insurance, vehicle insurance, construction or building insurance, residential insurance, natural disaster insurance, and so on.
Online Insurance
The existence of the internet is seen as a positive thing by insurance companies. Today many insurance products are marketed online. This is beneficial for those who want to take out insurance.
Because they can easily find out or get information about insurance products without the need to meet face to face or to an insurance company.
There are several things that need to be considered before deciding to register online for insurance.
1. Security and Privacy Guarantee Check
It’s not just a crowded online shop. Insurance websites are also widely found. You have to really know how well the insurance company maintains the security and privacy of its customers.
Surely no client would want their identity to be easily accessible to strangers. Choose several insurances and then compare one by one how they maintain security and privacy.
2. Review Insurance-Related Policies
If you have found a suitable insurance company, the next step is to review it via email regarding information related to insurance policies in detail. Some insurance sites will definitely ask for your email address to provide access to certain information, including products, promos, or informative articles.
3. Enrich the Information Related to the Insurance Company
The final step, try to find out about the shortcomings of the insurance company you choose (related to things that are not covered). In addition to accessing related information, you can consult your colleagues or via the company’s hotline.
For those of you who are unfamiliar with insurance products, these tips can help you choose insurance.
1. Consider the Amount of Dependent Value
There are simple steps to determine the amount of sum insured, namely through the life value method by calculating your current income multiplied by the money prepared for family coverage or insured items.
2. Pay attention to your financial ability to make premium payments
You must be absolutely sure you can pay off your premium coverage. Don’t let the premium be forfeited because you cannot afford to pay the installments each month.
No need to want a large nominal. Just pay attention to your financial capabilities and set it aside carefully. In general, a good premium range is 10% of your income per month (maybe higher).
3. Understand the Company Terms and Conditions
Sometimes because we have been tempted by insurance products, we will skip the instructions to read the terms and conditions that apply. A trivial step that is fatal if not done.
Understand thoroughly because it will be useful someday if you make a complaint about something that doesn’t suit or disappoint you related to the insurance feature.
Adjust to Financial Needs and Capabilities
Looking for insurance is arguably easy to bother. There are many things that must be considered carefully in insurance. Starting from insurance products, terms, conditions, advantages, disadvantages, to the insurance company profile.
The reviews described above can be used as a reference in getting insurance. The most important thing is to adjust the insurance product with your financial needs and capabilities so that you really feel the true benefits of insurance.
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