Insurance is Beneficial or Even Makes Loss

    Hello everyone. See you again, Luna. Welcome to the Talking Money Channel. When we talk about insurance, especially health insurance, we often hear two different sides. You may feel the same way I did on the first page, but I often hear sweet talk from relatives, friends, or insurance agents. The insurance company will cover the cost.

Insurance is Beneficial or Even Makes Loss

(Not an Insurance Sales article)

  On the other hand, it is not uncommon to hear disturbing stories from insurance customers.

    There is a story about a father who has been insured since 2012 and has been paying tens of millions of dollars in premiums each year.

    Just in 2017 he was diagnosed with lymphoma and his insurance claim was denied by his insurance company. some customers get it.

    After a few years, the investment did not increase and suffered very heavy losses.

    Some customers even call the police and claim damages. If you look closely, you can see that there are many organizations that have received complaints from customers that they were hurt by insurance on some SNS such as Facebook.

    Why? There are many sweet stories that they were saved by using insurance, but on the other hand, there are also people who are losing money. So does insurance make sense? Do you really need insurance, or should you save up for yourself? Well, in this video, I'd like to talk about a few things related to insurance.

    First, I would like to talk about insurance, especially health insurance. We will also discuss some important considerations before purchasing health insurance.

    If you are thinking about enrolling in health insurance, we hope that this information will be of some help. One of my promises in this content is that I promise not to promote insurance companies in this video and to provide only neutral information. Well, first I would like to talk about health insurance.

    The big concept is that health insurance covers the cost of various treatments if there are health risks. So, if you do get sick, your treatment costs will be covered by your health insurance company and covered in full or in part.

    To receive these benefits, you must pay a premium. Monthly and yearly amounts vary widely.

    Well, these insurers usually have very different policies and differ from each other. Starting with the details of the coverage, we will introduce how to proceed with the application procedure and the types of health insurance. Let's start from the beginning.

    Let's start with the protective cover. Different insurers have different coverages, some cover only inpatient treatment, some cover both hospital and outpatient treatment, and some cover critical illness.

    Also, some only cover treatments in Indonesia, others cover overseas treatments, and so on. All this coverage depends on the type of product you choose and how much premium you want to pay.It is very important here to determine your own needs and not rely solely on the offers of your insurance agent.Instead, you should be able to determine your need for insurance. Now let's talk about the billing process. For example, in case of illnessthere is insurance that directly pays medical/treatment costs, and now this type is usually called non-cash. will check with your insurance company.

Your health insurance company will automatically cover the cost of your covered treatment. The second claim method is a refund. So if you get sick, you can pay for or take over your treatment first, and later apply for reimbursement from your health insurance company.details the types of insurance. Basically, health insurance can be divided into two categories. The first is conventional or Shariah. Traditional insurance is a common system that we are all familiar with.

    You are purchasing a warranty/risk protection for a specific period of time. In Shariah insurance, the system follows Shariah principles based on mutual protection and mutual assistance of potentially vulnerable customers. The second category is pure or traditional insurance and unit-linked insurance.

    With conventional insurance, premiums paid by us are valid for insurance and normally if there is no risk the premiums paid will be forfeited. Unit-linked insurance is insurance + investment, so part of the money is used for insurance premiums and the rest is used for mutual fund investment vehicles.

    Well, that's the general system of health insurance. Now I would like to explain how to get the really best benefit from insurance. What are some tips for avoiding unscrupulous insurance agents who offer insurance products that do not meet our needs?

    The first tip is to choose a reputable insurance company. how do you know? Easily browse insurance company names, social media, letters to the editor, or online news.If you pay attention, you can easily find the names of insurance companies that often receive complaints, problems and protests from their customers. It is usually the name of the insurance company in question. Yes, that's all.

    Do you have a good insurance company? There is! And it's usually good insurance, with few complaints.Second, choose an insurance agent that we know well. Why is it so? Yes, because if we are sick, it is this insurance agent who will stand by and help us. Even if it is not someone we know well, try that the agent really has a good track record.

    Third tip, before you meet with an insurance agent, you should know your insurance needs first. how are you? For example, do you want insurance that also covers serious illnesses? Do you want to enroll in insurance not only for inpatients but also for outpatients? Basically, we know and understand our needs best, so we decide what type of insurance product we want to choose. why is that? After all, insurance agents are certainly interested in receiving a commission from the type of services they sell. I'm not saying all insurance agents are bad. Yes, we also have many insurance agents that offer products suitable for our needs.

    But basically it's better for us to understand what our needs are and what are these last tips related to insurance and investments or unit connections. Unit linking requires you to be extra careful with unit linking offers from insurance agents. Wow why is that? Honestly, because there are so many unscrupulous insurance brokers who do not provide complete or detailed information to prospective clients and end up misleading a lot.

    You should know that there are quite a few unscrupulous insurance agents who package this unit tie as an investment vehicle promising a certain return. In fact, yes, the hidden costs of unit-linked insurance can range from acquisition costs, administration, investment unit purchase costs, and operating costs, not to mention the cost of the premium itself. Wondering what many of our customers are ultimately thinking is, why could an investment in a unit link end up losing so much after so many years? Why am I actually losing money? You should also know that Unit Link is not the ideal place to invest.

    If you want to invest, such as in an investment that you can monitor and liquidate flexibly. B. Deposits in Banks, Mutual Funds, or Stocks. Insurance and financial investment have different purposes and functions, financial investment should increase wealth and insurance should protect us from possible risks in the future. Both are good and useful, but don't mix them.

    So this unit link has no function? It's real, but it's definitely not for investment. Shared links can be used as reserve funds. If one day we are unable to pay the premium due to certain circumstances, we can use some of the funds from that shared link to pay the premium.

    Funds from this unit linkage are also used to keep our annual premium payments constant and not constantly increasing. Now the question is, do you really need insurance? Personally, I think health insurance is essential. Relatively cheap minimal BPJS health. The reason is simple.

    The cost of treating illness, especially serious illness, is very high. Our years of savings can quickly deplete for treatment after an illness or accident. On the other hand, it must also be admitted that there are indeed many questionable insurance agents who do not provide accurate information to prospective customers. Some insurers are unreliable and have poor financial controls.

    That's why we need to be more careful when making financial decisions, including choosing insurance. I hope that what I have said here is helpful to you. See you in next article.

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