"An agreement between the insurer and the insured, which requires the insured to pay a certain amount of premium to provide reimbursem*nt for the risk of loss, damage, death, or loss of expected profit, which may be suffered due to an unexpected event (insurance)."
"Liability (agreement between two parties, one party is obliged to pay dues and the other party is obliged to provide full guarantee to the payer of dues in the event that something happens to the first party or his or her property in accordance with the agreement made)."
Insurance is an agreement between two or more persons in which the insured party pays dues/contributions/premiums to be reimbursed for the risk of loss, damage, or loss, which may occur as a result of an unexpected event. The term insurance itself comes from the English, namely "insurance" and Dutch, assurantie or verzekering.
Insurance cannot eliminate the risk of unexpected events, but insurance can reduce the impact of losses that arise from such events, either on a small or large scale. Now insurance has become part of financial planning for some people for the long term. Elements in Insurance
Premium. Premium is an obligation paid by the insured to the insurer (insurance service provider) as a risk transfer service. Payment of this premium must be repaid by the insured party to be able to use the insurance benefits when needed.
Insurance policy. Insurance policy is a legal document that becomes the legal basis of the relationship between the insured party (customer) and the insurer (service provider / insurance company). The policy acts as a basis for paying compensation costs for damages or losses suffered by the insured party. The policy is made by agreement and must be made in writing.
Claim. Insurance claim is an official application submitted by the customer against the insurance company to make payment as a form of compensation for damages or losses under the provisions of the insurance policy. Before making the payment, the insurance company will check the validity of the claim first.
Types of Insurance:
Health insurance. Health insurance provides protection with guaranteed health costs and care for the insured party if you have an accident or fall ill. This type of insurance is widely provided by companies or agencies where a person works.
Life insurance. Life insurance covers a person's death by providing financial benefits to the insured for his death. When the insured party dies, the policyholder will receive the sum insured from life insurance.
Education Insurance. Education insurance can be said to be savings for the future to ensure the education of children from policyholders (insured parties). This insurance became popular because of the higher cost of education from year to year so it is not uncommon for parents who now have education insurance.
General Insurance. General insurance is protection against the risk of loss and loss experienced by policyholders. One of the most well-known general insurance is Motor Vehicle Insurance. This type of insurance is usually short-term.
Health Insurance
Health insurance is a type of coverage that finances health care.
Let's check out how to register:
The type of insurance does vary, one of which is health insurance. This insurance can provide comprehensive protection for the health of yourself and your family.
The protection covers medical expenses such as hospitalization costs, surgical operations, and others as stated on the insurance policy. So, you do not need to worry anymore about the cost of hospitals that are quite expensive.
So, how do you list and cost health insurance itself? Is this type of insurance useful enough? Find the answer here.
Understanding health insurance
Health insurance is a type of insurance that guarantees and is responsible for medical, surgical and other health care costs. The cost covered by this insurance depends on the initial agreement of the policy.
So, there are several types of policies that you can choose when you want to register for insurance. The following types of policies depend on the deposit per month.
Generally, the higher the insurance payment, the greater the service provided by the insurance to the customer.
For example, the insured party does not need to spend a penny when undergoing medical treatment, because the insurance company as the issuer of the policy that must cover the payment.
However, there is one thing to note, especially when you sign up for the following insurance. Make sure you understand what costs are covered. Because not all health costs can be covered by the insurance.
6 Benefits of health insurance
Health is a very valuable investment. However, the arrival of the disease is unexpected. Therefore, you need to anticipate it by utilizing health insurance. Where later you will have the opportunity to get some of the following benefits.
Giving a Sense of Calm
By registering insurance, it will create a sense of calm and peace because it already has health protection guarantees that can be utilized at any time you need it.
If you are suddenly sick and need medical treatment, you do not need to be confused looking for or setting up a health fund. Because the insurance will cover all these costs.
Giving Efficient Time
When unexpected pain strikes, you don't have to bother looking for a loan for treatment funds.
This provides time efficiency. So you can get faster handling and avoid worse odds. The insurance fund claims system for health is also very easy.
Just by showing a member card or cashless to the hospital, then the insurance that takes care of all financing. You just focus on healing and restoring your health.
Regular Financial Management
Signing up for insurance products makes you required to pay premiums on a regular basis. This requires you to manage your finances regularly. So that the insurance budget that must be paid does not reduce other fixed expenses.
Future Savings Investments
Certain insurance companies make a policy to refund when the validity period of the policy has expired.
With the terms and conditions that have been mutually agreed, if you have not used the insurance product because it is not sick and experienced unexpected events, then some premium money can be refunded.
It's like buying a future savings investment product. You get health protection guarantees.
Getting Proper Health Care
The benefits of having other health insurance lie in a decent health service for the patient. Health care will be adjusted to the cost of premiums paid regularly.
You should choose an insurance product according to your needs. Therefore, it is important at the beginning to know the features and services offered by each insurance product.
Various types of health insurance
The types of health insurance that you can choose, including:
Insurance for individual health
It's a personal type of insurance. So when going to cover the cost of treatment, the insurance will see who is covered by the insurance.
Because the guarantee of protection and benefits provided by insurance only reaches one person who is the insured in the policy rules. As a result, the use of this type of insurance cannot be used by others.
Family health insurance
Is a type of insurance that provides health protection for families. This means that the insurance will cover all health protection costs in one family.
So any family member who needs health-related expenses, such as accidents, hospitalizations, and the like, will be covered by insurance. Usually the premium cost of this type of insurance is more expensive compared to insurance for individuals.
Family health insurance covers more than one person. Especially if family members are more and more, the cost of premiums is higher as well. Registered family members usually consist of health insurance for parents, children, grandparents.
Children's health insurance
Child health insurance is a type of insurance that covers all costs related to child health. So it's only for children. With the insurance for children's health, make parents become calmer.
Moreover, toddlers and children still have a low immune system. So that it is susceptible to disease. They also need vaccines or immunizations.
To save expenses and avoid unexpected future events in children, children should be enrolled in insurance. So that all costs related to children's health will be covered by the insurance.
Online health insurance registration
Learn how to sign up for health insurance online. Check out the following steps.
Determining Insurance Products for Health Based on Needs
The first step before signing up is knowing and determining an insurance product for health. There are many types of health insurance. Make sure you choose the type of insurance that suits your needs and conditions.
If you have a family, it is advisable to choose insurance that covers the entire health of the family and children. But if you do not have a family, you should choose insurance for individuals.
In addition, each type of insurance has a variety of packages. Choose a health package based on your needs and funds. Find out also the advantages and disadvantages of each insurance product in circulation.
Set up the Required Registration File
Once you have determined the type and product of insurance for health. Next prepare all files and administrative requirements to register the insurance product.
The requirements of the file that must be met are usually self-identity identification marks such as ID cards, Family Cards, insured birth certificates, NPWP, and so on. Because the registration is done online then you have to scan the file.
Open a registration site and Fill in Personal Data
Please open the registration site or through the application if provided. Each insurance product has a different site and app features. You can customize based on the selected insurance product.
After opening the registration page, please fill out a form that includes personal data, insurance package options offered, health facilities with a choice of selected agencies as a reference place, and upload scans of the requirements files that have been prepared.
Choosing Premium Costs
If the registration form has been filled out correctly, the following you will be directed to the menu to choose the premium fee. Premium fees are paid regularly every month or every year. Choose the cost of premiums according to your budget and needs.
Usually the cost of different premiums will affect the health facilities and features offered by the insurance.
Making Payments
After saving the data that has been filled in, then there will be a reply to the notification of the registration number via registered e-mail. Print or print a virtual sheet of a payment account.
Then make a payment through a bank that has been appointed by the insurance company.
Proof of Payment and Confirmation from the Insurance Party
After making the payment according to the virtual number, you will obtain proof of payment. The insurance will process your registration within a few days of the business day. Later you will receive confirmation from the insurance.
Life Insurance
Life insurance has different benefits. Therefore, there are several types of life insurance that we need to know.
Life insurance has different benefits. Therefore, there are several types of life insurance that we need to know. Let's take a look at the following types of life insurance:
1. Term Life Insurance
All term life insurance products provide coverage for one specific period of time called the policy term. The benefits of this insurance policy can be paid only when:
(1) The insured died within the specified period of time, and
(2) The police are still in force when the Insured dies.
If the Insured is still alive until the expiration of the stipulated period of time, then the policy will give the policyholder the right to continue life insurance coverage. If the policyholder does not continue the coverage, then the policy will expire and the insurance company is not obliged to provide further coverage.
The types of life insurance coverage are:
a. Term Life Insurance with Fixed Sum Insured (Level Term Life Insurance) which provides the same amount of death benefit during the term of the policy.
b. Term Life Insurance With Decreased Coverage (Decreasing Term Life Insurance) which provides death benefits whose value decreases during the coverage period. The benefits of this policy start with a predetermined coverage value and then decrease over the period of coverage according to the method described in the policy.
c. Life Insurance With Increased Term Life Insurance provides a death benefit that starts at a value and increases by a certain value or percentage at a predetermined interval during the term of the policy.
2. Whole Life Insurance
This insurance has 2 (two) characteristics, namely:
1.Provide lifelong coverage to the Insured as long as the policy is still valid (in force); and
Provide insurance coverage and contain an element of savings.
The types of life insurance coverage are:
Traditional Whole Life Insurance
This type of insurance provides lifetime coverage with a fixed premium rate (premium rate) that does not increase in line with the age of the Insured.
This type of insurance is also referred to as second-to-die life insurance, which is a type of combined lifetime life insurance where the benefits of the policy are only paid after the two insureds die. This life insurance premium is only paid until the first Insured dies or the premium can be paid until both Insureds die. This insurance is specifically designed to provide coverage to married couples who want to have funds to pay estate taxes imposed after they die.
c. Joint Whole Life Insurance
This type of insurance has the same features and benefits as lifetime life insurance for individuals except that this insurance covers two lives in the same policy, often called first-to-die life insurance because after the death of one of the Insured, the death benefit in the policy will be paid to the surviving Insured and the policy coverage expires.
3. Dwiguna Life Insurance (Endowment Insurance)
This type of insurance provides a certain amount of benefits whether the Insured lives until the end of the coverage period or dies during the coverage period. Each dual life insurance policy has a maturity date, which is the date of payment of sum insured by the insurance company to the policyholder if the Insured is still alive. The due date will be reached at the end of a predetermined period of time, or when the Insured reaches the predetermined age.
Unit link insurance is an insurance that combines the benefits of insurance with investment. Premiums paid will be allocated into two separate management mechanisms, namely basic premium management for the benefit of protection and investment premium management. Investment Premium is managed by the Investment Manager or investment expert of the company. By buying unit link products, an Insured can get the benefits of insurance protection as well as returns on investment unit link products in Indonesia generally organized by life insurance companies.
That's the types of life insurance found in Indonesia, quite varied, right? Of course, it is necessary for us to remember that before buying a life insurance policy, you must first understand the life insurance product to be selected. In addition, make sure that the insurance company you choose has been registered and supervised by OJK so that you do not experience unwanted losses.
Car Insurance
Car Insurance – Owning a car is everyone's dream. The car we have must always be maintained so that it can be driven safely and comfortably. But the danger of accidents can happen anytime and anywhere. That's why we need car insurance, so as not to worry about accidents. There are many vehicle insurance providers who are ready to provide their best services with competitive premium rates and various attractive insurance services.
There are many benefits that we get if we follow car insurance, such as avoiding losses during accidents and losses when cars are stolen. To get the service, of course, we have to pay a monthly fee according to the insurance services we follow. In line there are several types of vehicle flares that we can choose from, including TLO (Total Lost Only) car insurance, All Risk car insurance, and combination insurance that combines All Risk and TLO.
Total Loss Only (TLO) car insurance is insurance that provides a guarantee when the vehicle is stolen and damage occurs with a repair value equal to or more than 75 percent of the price of the vehicle at that time. So if the damage to the car is less than 75% of the total price of the vehicle before the damage occurs, then the application of insurance claims that we do will be rejected. For example, if the price of the car we have is 100 million and the cost of damage reaches 80 million, then the cost of repairs can be delegated to the insurance. But if the repair cost is only 60 million, then we cannot make an insurance claim.
Then for all risk or comprehensive car insurance will provide full protection and financing when the car we have suffered damage large or small. One of the best mobi insurance services also provides protection when the car is lost stolen, but with certain conditions. Unfortunately, the cost of premiums deferred every month is greater than TLO insurance.
Sharia Insurance
Understanding Sharia Insurance and Its Differences with Conventional Insurance
Today, there are many types and benefits offered by insurance, where each insurance company has a variety of features and advantages on each of the products they issue. But as a prospective user, it is natural if we understand and know well the insurance that we will choose and use. This will help us to get maximum benefits and benefits for such use.
Over the past few years, Sharia insurance has become one of the insurance products that are widely discussed among the public. This insurance is present to meet the interests and desires of many people who expect a halal insurance product and in accordance with sharia provisions.
According to the National Sharia Council, Sharia insurance is an effort to protect each other and help each other among a number of people, where this is done through investments in assets (tabarru) that provide a pattern of return to face certain risks through sharia-compliant agreements. In Sharia insurance, a system is put in place, where participants will be given some or all of the contributions that will be used to pay claims if any participant experiences a disaster. In other words, it can be said that, in Sharia insurance, the role of insurance companies is only limited to operational management and investment from a number of funds received only.
Difference between Sharia and Conventional Insurance
In its development, Sharia insurance has many advantages and advantages when compared to conventional insurance. This, of course, makes a fundamental difference between the two types of insurance. The following are the differences between Sharia insurance and conventional insurance:
1. Risk Management
Basically, in Sharia insurance a group of people will help each other and help each other, guarantee each other and cooperate by collecting grant funds (tabarru). That way it can be said that the risk management carried out in Sharia insurance is using the principle of sharing of risk, where the risk is charged / shared with the company and the insurance participants themselves.
While in conventional insurance applies a transfer of risk system, where the risk is transferred / charged by the insured (insurance participant) to the insurance company acting as the insurer in the insurance agreement.
2. Fund Management
The management of funds carried out in Sharia insurance is transparent and used as much as possible to bring benefits to the insurance policyholders themselves.
In conventional insurance, the insurance company will determine the amount of premiums and various other costs aimed at generating the largest income and profits for the company itself.
3. Treaty System
In Sharia insurance only used grant agreements (tabarru) which is based on sharia system and ensured halal. While in conventional insurance the contract that is done tends to be the same as the buying and selling agreement.
4. Ownership of Funds
In accordance with the agreement used, then in sharia insurance the insurance fund is a joint property (all insurance participants), where the insurance company only acts as a fund manager only. This does not apply in conventional insurance, because the premium paid to the insurance company belongs to the insurance company, in which case the insurance company will have full authority over the management and allocation of insurance funds.
5. Profit Sharing
In Sharia insurance, all profits obtained by the company related to insurance funds, will be distributed to all participants of the insurance. But it will be different from conventional insurance companies, where all profits obtained will be the property of the insurance company.
Sharia insurance companies require their participants to pay zakat which amount will be adjusted to the amount of profit obtained by the company. This is not the case in conventional insurance.
7. Claims and Services
In Sharia insurance, participants can take advantage of hospitalization fee protection for all family members. Here is applied the system of using cards (cashless) and paying all bills that arise.
One insurance policy is used for all family members, so the premiums imposed by Sharia insurance will also be lighter. This is not the case in conventional insurance, where everyone will have their own policy and the premiums charged will certainly be higher.
Sharia insurance also allows us to be able to do double claims, so we will still get the claims we file even though we have obtained them through our other insurance.
In Sharia insurance, supervision is carried out strictly and implemented by the National Sharia Council (DSN) which is formed directly by the Indonesian Ulema Council (MUI) and given the task of overseeing all forms of implementation of sharia economic principles in Indonesia, including issuing fatwas or laws governing them. In every Islamic financial institution, there must be a Sharia Supervisory Board (DPS) that serves as a supervisor. This DPS is a representative of the DSN in charge of ensuring the institution has implemented sharia principles correctly.
DSN is then tasked to conduct supervision of all forms of operations carried out in Sharia insurance, including weighing all forms of property insured by insurance participants, where it must be halal and free from haram elements. This will be seen from the origin and source of the treasure and the benefits produced by it.
Unlike the case with conventional insurance, where the origin of the insured object is not a problem, because what is seen by the company is the value and premiums that will be set in the insurance agreement.
9. Investment Instruments
This is also a big difference in Sharia and conventional insurance. In Sharia insurance, investment cannot be made in various business activities that are contrary to sharia principles and contain haram elements in their activities. Included in this activity are:
Gambling and games that belong to gambling. Trade that is prohibited according to Sharia, among others: trade that is not accompanied by the delivery of goods / services, and trade with false supply / demand. Ribawi financial services, among others: interest-based banks, and interest-based financing companies. Buying and selling risks that contain elements of uncertainty (gharar) and/or gambling (maisir).
Producing, distributing, trading and/or providing various goods, such as: illegal goods or services of the substance (haram li-dzatihi), illegal goods or services not because of the substance (haram li-ghairihi) stipulated by DSN-MUI. Make transactions that contain elements of bribery (risywah).
This provision certainly does not apply in conventional insurance, because basically in conventional insurance the company will make various investments in various instruments aimed at bringing maximum profits to the company. This can be done without using / considering the haram or not the chosen investment instrument, because basically in conventional insurance the funds that are attached are actually funds belonging to the company and not belonging to the insurance policy holder, so that the company has full authority in the use of the funds, including in choosing the type of investment to be used.
In some types of insurance issued by conventional insurance companies, we know the term "forfeited funds" which occurs in unclaimed insurance (e.g. life insurance whose policyholders do not die until the coverage period ends). But this does not apply in Sharia insurance, because funds can still be taken even though there is a small portion that is sincere.
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