Before buying an insurance product, we must know clearly what benefits will be obtained from the product. In fact, we are often negligent or don’t even pay attention to all the contents in the insurance policy that we are going to buy. Not only you, most people who use insurance services often experience it.
Lack of attention can cost you money for inappropriate needs. Moreover, the amount is not small because most people will take a number of policies whose value is large enough for various insurance services. Avoid that risk because every penny of your money is worth it. That’s why it’s so important that you know where the money is going.
Need for an Additional Insurance (Riders)
Not only in basic insurance, but some people have also made mistakes when buying additional insurance policies. Additional insurance or what we know as riders is an additional feature/service in the main insurance that you use. This means that this feature may or may not be used by you, depending on the needs and completeness of the insurance you use.
Misunderstanding the various benefits and advantages that you will get in additional insurance, of course, will make you spend an extra amount of money that does not suit your needs.
Many people use additional insurance services without knowing exactly what coverage and benefits they will get. In the end, some have realized that these features are really not what they need. Their money went out for nothing.
In order to avoid this case, you should clearly study and know what additional insurance is. The following are some types of additional insurance that you often encounter in insurance services.
One of the types of additional insurance that is most often added to basic insurance services. Even though every insurance company understands it differently, broadly speaking a premium waiver can be interpreted as a service that will guarantee premium exemption due to the total incapacity of the insurance policyholder.
What you need to pay attention to is the total disability mentioned above. Know clearly the details set out by the insurance company. Is total disability related to conditions where you are incapacitated due to certain diseases or just injury? Or it could be both.
You are also required to pay attention to other provisions made by the insurance company. For example, the waiting period for the validity of the riders if at any time you are in a situation of total disability. Usually, insurance companies determine that claiming for new riders can be done after six months of submission. This means that for six months you are required to pay the policy as usual. The number of riders may be small, but it is very important for you to know the benefits and conditions before deciding to buy.
These riders are almost the same as premium waivers. Made to bear the risk of the insurer’s total incapacity. The difference is, payor benefits are intended for other dependents, for example, family members that you insure. While the premium waiver is only you who will be covered. Therefore, payor benefits are usually taken as children’s education insurance or something similar depending on the fulfillment of the needs you are looking for.
What you need to look at from payor benefits is the concept, which is somewhat unusual. For example, parents as policy payers die, their children who are made insured will not get an amount of insurance coverage. The insurance company actually pays/continues the child insurance policy until the payment period is complete. And the policy can be used by the child.
It might sound so helpful and fix the problem appropriately. In fact, not everyone thinks so. Because some people will think why the insurance fund is not just handed over directly to the child? Which later, these funds can be invested in other investment instruments that are much more profitable.
Health Insurance Riders
One of the riders that are often added to basic insurance. Unfortunately, most people do not understand and understand what and how actually the benefits will be obtained from these riders.
For those of you who need health insurance, you should just buy this insurance without including life insurance in it. However, many people are mistaken. They actually buy life insurance policies that have health insurance riders in them. This is tantamount to wasting money for nothing.
Health insurance that is used as riders in life insurance is basically almost the same as inpatient insurance that you can buy directly. Moreover, you may not necessarily be able to extend the health insurance riders when their time is over. For example, because your risk is quite high and you have frequently made claims in the past year, your health insurance riders are declared non-renewable. Or the insurance company will charge a high premium because of your high risk.
Riders Critical Illness
Also including one of the riders that many people misunderstood. Basically, rider critical illness is coverage for the risk of various “critical illnesses” that policyholders may suffer. However, the definition of critical illness referred to by insurance companies is often understood differently by policyholders.
Generally, insurance policyholders are of the opinion that if they are diagnosed with a number of diseases that are included in the coverage, they will get compensation. However, in reality, the insurance company will only pay claims if you are in a critical condition as a result of this “critical illness”. That is, if you have only recently been diagnosed, the insurance company will not provide compensation for it.
Pay Attention Before Buying
Each person’s needs for an insurance service are certainly different. That is why some additional insurance/riders are provided by insurance companies. Unfortunately, there are often cases where customers buy the wrong riders. This occurs due to a lack of understanding of the contents of the policy being used. Therefore, first look at your needs and the riders offered. Just decide which one you want to buy.
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