A good company usually already has a protection system for its employees, at least for health protection in the form of health insurance. Especially at this time, there are government regulations in several countries that require companies to participate in the government health insurance program. Some companies even provide additional insurance from private insurance companies for their employees.
If even this is not enough, then there’s nothing wrong with starting to look at additional insurance to protect yourself. There are at least two insurance products to consider, namely health and life insurance. What considerations need to be considered before taking out additional insurance products? The reviews below will help you.
Important Considerations Before Taking Additional Insurance Products
If at this time you have joined the health insurance program or other additional insurance and feel that something is still missing, then there’s nothing wrong with taking out additional insurance. The following considerations are one of them:
The existing insurance coverage or service class is out of expectation
Health insurance has its own class of service according to the premium paid. If you feel that the class of service provided is not as expected, there’s nothing wrong with looking for additional insurance. Likewise with life insurance, whether the sum insured given is large enough or not. Adjust as needed, covering at least USD 1 million coverage. If it is not enough, you can take additional insurance outside the office.
Uncomfortable with Insurance Services from the Office
One of the most uncomfortable things about joining an insurance program is the claim mechanism. If insurance from the current office is a hassle, for example, hospital services are limited, or your mobility is high while the claim process is difficult and troublesome, then it’s a good idea to consider taking other additional insurance.
What is the Budget for Purchasing Additional Insurance?
This factor is most important to be the main reference. Do not force yourself to join additional insurance which will burden your monthly expenses to make you often stressed.
Know the following types of life insurance so you don’t take the wrong protection
Life insurance is less attractive because it looks identical to death protection that cannot be enjoyed by the insured himself. Even though this is not the case. Life insurance provides financial guarantees if a person is too old or suffers from a disability or dies and cannot provide for his family.
The insurance company itself has finally developed this life insurance product into 4 types so that it is easier for potential customers to accept according to their needs, as follows:
Term Life Insurance – The Cheapest Among Other Types of Life Insurance
This type of life insurance provides protection to policyholders for a certain period of time according to the agreement, for example, 5, 10, 20 years. Beyond that, the protection period will end (expired). Suitable for use for those who want maximum protection with a limited budget and within the desired timeframe. This insurance premium is the cheapest compared to others, but the risk is that if there is no claim, the total premium that has been paid will be forfeited.
Characteristics of Term Life Insurance
- If there is a risk, such as an accident or death during the contract period, the insurer will provide the beneficiaries with an amount in accordance with the provisions of the policy.
- If the insured does not experience the risk until the end of the contract period, the insured will lose the money that has been paid to the insurance company. It’s just that the customer does not need to feel sorry for this, instead, he should be grateful that he is still given health until the contract is over. So the principle is more in case of risks that cannot be borne by yourself.
Pros and Cons of Term Life Insurance
- The cost of this insurance premium is lower than other types of life insurance, usually USD 250 per month or according to financial capacity.
- The sum insured obtained is quite large, even reaching millions of dollars, and will only be provided by the insurance company if the insured cannot support the family due to health problems or dies during the active contract period.
Whole Life Insurance
Whole Life Insurance is intended for customers who want to get protection for life. Actually, more precisely for the period of protection until the age of 99 or 100 years in accordance with the provisions in the policy.
Characteristics of Lifetime Life Insurance
- Whole life insurance can provide cash value from policies that have been paid for within a certain period, according to the agreement in the policy.
- The premium that has been previously paid can be used to pay premiums for the following months if the customer experiences financial constraints.
- Insurance premiums will not be forfeited if there are no claims and can be taken in full if the contract period ends according to the agreement in the policy.
- The premium paid is relatively high
This type of insurance is suitable for customers who want to get protection for life but still get cash benefits so that it can be an alternative to savings, even though the value is not large.
This type of life insurance offers 2 benefits, namely term insurance, and savings. This product combines term life insurance and savings which can be withdrawn at any time before the contract period ends, according to the agreement.
Characteristics of Endowment Life Insurance
- This dual-purpose life insurance product has many variations.
- Usually packaged as children’s education insurance, pension insurance, and so on.
- There are many choices of contract terms with a nominal agreement for disbursement of the value of the savings and the nominal amount of the sum insured
- This type of insurance has 2 benefits, namely life benefits and death benefits. This means that the sum insured will be given if the customer dies or is still alive but the policy contract has ended.
- Suitable for savings as well as life protection
- The premium cost is relatively high because of the more flexible refunds and savings benefits that you can use for urgent needs.
Life Insurance Unit Linked-Insurance Plus Investment
This type of insurance is the newest product from an insurance company that combines insurance and investment which is the answer to the needs of customers who are interested in investment and want to continue to receive life and health protection.
Unit Linked Insurance Characteristics
- The premium is expensive, the customer will still bear the investment gain or loss.
- The return on investment is used to pay additional insurance costs if there is a premium leave facility.
- Return on investment can be taken when urgent needs such as education or retirement.
- Practical for customers who want both protection and insurance in the same product
- The investment yield can be withdrawn within a certain time.
- The investment value is not as big as a pure investment, likewise, the value of protection is not as big as pure life insurance
Consider carefully before deciding to take a link unit, because this is a long-term investment and insurance product. If you stop in the middle of the road, you will lose.
In accordance with Financial Capability
Understanding each insurance product is important to do before deciding. If you feel that insurance protection from the office is still lacking, then the alternative insurance products above can be an attractive option. The condition is, you have enough budget to pay the premium. Do not let it become a burden on your own long-term financial plan.
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