What Is Life Insurance? Definition and Benefits for You – infomediaku.net
The insurance may be familiar to your hearing, but that does not mean it makes you understand clearly what and how the concept is actually applied in insurance.
There are many people who actually become disappointed and feel disadvantaged after using insurance. Where basically this arises due to a lack of understanding of the agreement and benefits contained in the insurance policy.
Things like this can of course are prevented and avoided if only from the start you took the time and studied the insurance policy that you were going to use carefully and fully understood every article in it.
Of the many types of insurance provided by insurance companies, life insurance is one of the most widely used types of insurance by the public. This shows that people’s awareness of the safety and interests of their families is quite good.
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What is Life Insurance?
Life insurance is an insurance service that is used as a form of protection against financial loss or loss of income for a person or family due to the death of a family member (the insured) who is usually the source of income for the family.
This is intended as a form of anticipation for the families who are left behind, where they need financial support due to the death which of course can cause the family to lose income and experience economic hardship for years to come.
When a family member dies, especially one who is a source of income for the family, it is certain that the family’s finances will experience a shock and even this can last for a long time (forever). To anticipate this, it would be wise to use life insurance from the start.
This aims to ensure the financial continuity of the family, education of children, health, and worthiness of family members left behind.
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Life Insurance Benefits Should You Know
Some people might say, that as a believer you don’t need to worry too much about many things, including the safety of your soul. Where people with this kind of thinking will think that the Creator has a plan and always guarantees the safety of his people.
This is certainly not wrong, but it is also not always true, where as a resourceful creature you will also consider all kinds of risks that can happen at any time and befall you anywhere.
You certainly don’t want bad things to happen to anyone, but if it turns out that one day something bad happens to you, then it’s only natural for you to have protection or security for the family you left behind, right?
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Having life insurance is a smart choice, where you can get many benefits from it. Here are some of the benefits of life insurance:
1. Calming the Mind
As mentioned above, that loss due to death will not only leave sorrow for the family left behind, but it can also have a very bad impact on the family’s finances due to the loss of income.
This risk can certainly be avoided by buying an insurance policy, where family life can still run and finances after facing the death of a family member are still in a safe condition.
2. Ensuring Children’s Education
This will be very helpful if it turns out that you already have dependents (children) who are still studying, especially those who are in childhood. Where the path of education they have to take is still very far away and requires a lot of money to continue. You don’t want the kids you left behind to quit school and stop having high goals, right?
You can also use insurance as a form of savings and anticipate bad things that can happen to you and your family at any time.
When and Who Needs Life Insurance?
Basically, people who have life insurance are those who care and want to protect and provide financial security for their families when they have passed away. This is done as a form of responsibility and affection for the family, where at any time you experience leaving them forever.
Everyone certainly has special considerations regarding the best time to have life insurance. Most people will buy insurance when they get married and start a new family, but several other people also have had life insurance since they were single and have not been married.
If you ask about when is the most appropriate time to have life insurance, then this must already be owned when you have dependents in your life. That way, those who are your dependents will not experience financial difficulties if at any time you die.
It can be said that those who need life insurance the most are those who have dependents in their life. What is meant by dependents, in this case, are those who are your responsibility and basically don’t have some income in their life so you act as the breadwinner or backbone in their midst? It can refer to your children, parents, or other relatives and relatives who benefit your life for you.
Life Insurance Premiums and Claims
When you are going to buy an insurance product, in addition to the benefits you will get, you will also really take into account the amount of premium you have to pay to the insurance company.
This becomes very important, considering that insurance is an expensive component that will be in your finances for a long period of time or even for the rest of your life, so it is very important to take it into account from the start.
Basically, the premium set by the insurance company will be collected on a monthly, quarterly, or even yearly basis, depending on the policy of the insurance company and the contract you have entered into with them.
There are several things that will affect the amount of premium set by the insurance company, which is generally influenced by several factors, such as:
In insurance, the older the insured, the higher the premium that will be charged by the insurance company, this is because of the high risk that will be borne by them, of course.
2. Medical History
When you apply for insurance, the insurance company will ask for your medical history as a requirement in your filing. This aims to calculate the amount of risk that will be borne by the insurance company.
3. Hobbies and Habits
Insurance companies will also apply higher premiums to people who have dangerous hobbies or professions, such as skydiving or scuba diving, which they consider to have a high risk to the safety of policyholders. Even a smoker will usually be charged a premium rate that is double that of a non-smoker.
When taking out a life insurance policy, the family member left behind must fill out an official insurance claim. In addition, several supporting documents will be required such as a death certificate or proof of death showing the date, location, and cause of death. The original insurance policy is also often a mandatory thing that must be brought at the time of claim.
This claim will be settled in one lump sum payment to the person named in the policy contract and acting as the beneficiary.
However, in some cases, claims may be rejected by the insurance company if there are irregularities or indications of fraud in the death that occurred.
Protect Yourself and Your Family
Life insurance is a form of protection and cares for you to your family and loved ones, there’s nothing wrong with having it as a form of anticipation for bad things that could happen, especially for those of you who have dependents.