The biggest benefit, of course, self-protection against any risks that can occur suddenly. There are many types of insurance products offered by insurance companies, such as life insurance, vehicle insurance, health insurance, education insurance, and many more.
Each of these insurance products certainly has its own benefits. One of them is the most important insurance product that can be chosen for self and family protection. Even so, before choosing any insurance product, of course, you must understand the importance of an insurance policy.
When you apply for insurance, you must know that there are rights and obligations in the insurance policy. Well, the following are the various benefits that you can get by having an insurance product:
Risk Transfer Instrument
Insurance can serve as a risk transfer tool. By having insurance, you can shift the burden of financial risk so that your finances are not compromised when something untoward happens.
For example, with health insurance, you don’t have to pay hospital fees in full. Part of the hospital bill will be covered by the health insurance you have.
In fact, there are insurance companies that are willing to fully cover the costs, so you don’t spend a single dollar.
Health insurance and life insurance can cover your life and that of your family. If you are the main breadwinner in the family, these two insurance products can be of great help.
Having health insurance or life insurance can ensure that your family’s life continues to run when risks occur to you, such as illness or death.
With this, you can fortify yourself and your family from various risks that may occur unexpectedly.
One of the insurance products is Tugu Pratama Insurance, which has a variety of health insurance and life insurance products that suit your needs.
Reduces the Burden of Anxiety
The Journal of Development Economics published research that states that insurance can help calm the mind and reduce anxiety and stress. So, it can be said that having insurance is not only financially beneficial, but also beneficial for mental health.
The reason is that when you have insurance, you know that you have protection in the future.
As already said before, insurance can be a risk transfer tool. Because part or even the entire risk has been transferred to the insurance company, you can minimize the losses that occur.
For example, if there is damage to your car, vehicle insurance can cover the cost of repairs and repairs. So, you don’t have to go into debt or take your savings money for the cost of the repair.
In this way, having insurance can help your financial management. You can estimate the losses you will have to pay in case of unforeseen risks.
Providing Security for the Future
Knowing that you have protection for the future against things and risks that could happen unexpectedly means that you are providing security for your future and that of your family.
You can become more confident knowing that the risk can be transferred to the insurance company, your financial condition can become more stable and you can become more confident. Because your financial condition can be managed properly, you can be bolder and more confident if you want to start a business.
As a Form of Investment
Investment is the right choice if you want to prepare for the future better. However, getting investment returns can not be done quickly and easily.
For example, if you’re investing in a property, it certainly takes some time for your property to sell. Or if you invest in stocks, of course you don’t want to sell them when the stock price is low.
And insurance can be the solution to this problem. You can get insurance benefits immediately after submitting a claim. If you want to have insurance that also functions as an investment, you can choose a link insurance product or dual-purpose insurance.
Those were the benefits that you can get if you have insurance. There are many other insurance benefits, such as providing compensation to policyholders.
Make sure you understand those rights and obligations to get the best protection.