How to Choose the Right Insurance Product for Your Family

How to Choose the Right Insurance Product for Your Family

Mostly for people who have a family, an insurance product has become an obligation that must be fulfilled. This is because if a family has insurance either for future survival or intended for health, it will not have difficulty in running it. You must choose the right insurance and tailored to existing needs, so that the insurance you use can be utilized appropriately and maximally.

Tips to Choose Right Insurance Product for Your Family

For those who want to have an insurance product, here are some ways to choose the right insurance for you and your family :

1. Make sure the Seller of Insurance Products has Licensed Agent

This first way, becomes an important tip to confirm whether the insurance seller is an official agent who has registered or just a broker. What makes something like this important? If a person becomes an official agent then he will have a great responsibility for the insurance products he sells.

Moreover, it is responsible for the client or participant who is dependent. If the person is not an official agent and does not have certification then the motivation in selling insurance products will be questioned.

The most important thing is if he is a person who has no experience in his field aka broker most likely you as a client will be difficult if there is a claim because he can not help you directly, and obviously this is very detrimental to yourself who has already chosen the insurance product.

So there is nothing wrong if you ask for their membership if you are offered insurance products, in anticipation of things that you do not want in the future. The most important thing is to make sure that the agent offering the insurance product can later help you in case of a claim or take care of administration and everything else.

2. Know Your Needs and Abilities First

Often you do not know the need exactly in buying something. Buying insurance products is not the same as buying tangible products (can be seen, touched) such as cars, houses and others. Because basically insurance products include intangibles (can not be seen, touched) but the effect can be felt for life.

Therefore, the initial considerations carried out carefully are very decisive, because if it is not right in choosing then the loss will be felt by yourself for life. However, you can stop at any time to cover the insurance policy. If that happens, losses will await you.

When deciding to consider buying an insurance policy from an insurance company, the first thing you do is determine the needs first for example, for example, as follows:

Rian has a family and has 2 children, he has a net income per month of USD 10 million, he plans to buy insurance products to protect himself and his family. What products are right for Rian and his family ?

After the interview that Rian wanted: all family members when they died, all family members protected or protected when experiencing illness for hospitalization, all family members protected when critically ill, all family members protected when they had an accident. On the other hand, Rian wants premiums that are not lost and even the value continues to grow.

Seeing Rian's needs, of course, only with insurance products that can handle all these needs. But when looking at his income of only USD 3 million per month the important question that arises is how much funds can be provided to pay premiums per month, after all daily needs are fulfilled? Well at this time let's just say Rian wants to save his funds of USD 500 thousand per month.

You need to know that life insurance contains basic insurance elements, namely death insurance and permanent disability insurance. So that all life insurance products can be ascertained to have this clause (or better known as sum insured). It is certain that other protection is only as additional insurance.

In fact, basic insurance and additional insurance has costs that must be paid within a predetermined period of time. Usually this fee will be deducted from the premium paid. This means if we look at the problems faced by Rian above who wants the cash value of premiums not reduced means there is an investment / savings aspect of the desired insurance. So he had to sacrifice some of his desire to get all the protection.

If Rian wants all his family members protected, then it is certain that the monthly insurance costs will be higher and mean it will reduce the cash value obtained because the planned premium is only USD 5thousand. Different if the premium deposited amounting to Rp5 million then it can be ascertained that all the desired protection can be obtained.

With the cash value decreasing due to the burden of additional insurance costs, it is feared that funds are not enough until the deadline has been determined. It can even suffer losses twice that the cash value of protection stops.

If Rian wants the cash value of that insurance to be more than protection then a good alternative path is to throw away some additional protection, choose some of the right ones, not include the entire family member in the insurance program but choose the one that really needs to be insured. So that later the investment that has been done will be felt to the maximum.

3. Get to Know Insurance Companies That Offer Products

You do not need to be hasty and confused when buying insurance products, but also do not take too long, because insurance protection is needed in this unpredictable world, you do not know when sick or experiencing disaster or even worse death. To determine the credibility of the company is not an easy matter, but the things below are worth noting.

The age of the company determines the credibility of a company because it proves the existence of a company that continues to run in the run of various economic difficulties over time. It's just that often the age of the company is not directly proportional to the service and quality of the product, because there is a long time but is tied to the old management model so that it does not develop in the end, but at least this is the first thing you need to question.

The award obtained, the credibility of a company is supported by the company's ability to obtain awards. The involvement of insurance companies in the competition is very important because the basis of the insurance business is a service.

So the commitment to serve customers well is a testament to the company's earnestness in maintaining customer trust. Capital, there are many opinions that non-local insurance is stronger when compared to local insurance. This assumption is not wrong, but it is not accurate. Indeed, in fact there are local insurance companies that go out of business because of capital that is not strong and only as a conglomerate of existing companies.

But if we look at not a few local insurance companies that survive for a long period of time, even whenever they can exist continuously.

Here are some tips to choose the right insurance. Hope it helps for you.
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