What You Need to do First, Do You Need Life Insurance or Health Insurance? 

Queenews.com- Having insurance is one of the important foundations of a person’s finances. The reason is that we are constantly faced with various life risks that are difficult to avoid.

Beginning with illness, accidents, and death, these events often have significant economic consequences. For example, if you get sick, you may incur medical and medical expenses.

Without adequate financial provisions, having to pay maintenance costs can put pressure on your family budget.

However, events that can lead to financial stress can actually be foreseen by insurance.

Insurance transfers the risk of economic loss from us to the insurer. If you do get sick, you don’t have to worry because the medical expenses will be covered by your health insurance. So the question is, what kind of insurance should take precedence over life or health insurance?

If you are at risk, you need insurance

Insurance is basically the simplest financial risk management mechanism. Anything that poses a risk to a person’s financial situation should be insured. Not everything can be insured, but there are at least two very important types of insurance. They are life insurance and health insurance.

These two types of protection are often neglected because young people do not perceive the risks of illness and death as great. For older people who are already married, life and health protection can be seen as a necessity. Of course, this assumption is incorrect because no one can predict the risk of illness or death.

So, as to which insurance is more important, the answer is that having life insurance and having health insurance are both equally important. However, if you are in a situation where you still need to prioritize your premium spending, you can use Manulife Her Indonesia Life Her Planner to explore your options.

Mandatory life insurance for breadwinners

Life insurance or life insurance is not about death. It is about how the family will live after the breadwinner dies.

For example, let’s say the father who was supporting the family died. The incident automatically weakened the family’s financial strength.

If you have a life insurance policy, you can minimize this impact by providing financial security for your surviving family members as the policy pays out the sum insured (UP). 

Here’s what you need to know about life insurance.

  1. Life insurance offers a wide range of coverage types that can be selected according to needs, from term insurance to whole life insurance to endowment insurance.
  2. The Amount Insured (UP) can be adjusted as needed and the Amount Insured (UP) can be set to provide for the heirs in the event of the insured person’s death.
  3. The following additional coverage (rider) can be added to life insurance. B. Have health insurance or an investment function
  4. If you do not have additional insurance. For example, if you have health insurance, the benefits of life insurance are not directly felt while the insured person is alive.
  5. Life insurance premiums must continue to be paid even in the event of financial difficulties, unless additional security (rider) such as premium exemption is added.

Everyone needs health insurance

According to Willis Tower Watson’s 2020 Global Healthcare Trends Survey report, Indonesia’s healthcare cost inflation rose nearly 10% year-on-year in 2019, and the figure is expected to continue rising.

With health insurance, you can live with peace of mind and concentrate on your treatment without worrying about financial problems caused by soaring medical costs.

Since 2014, Indonesians have introduced social insurance schemes in the medical field through BPJS Health. However, with medical costs soaring, it is a wise decision to take out private health insurance.

Here’s what you need to know about health insurance.

  1. There are different types of health insurance and health care, and you can choose according to your needs.
  2. reimbursement for hospital services or medical expenses, and hospital cash plans or medical expenses to cover loss of income during illness
  3. Most medical plans offer a card-based cashless billing system, so you don’t have to worry about setting up a medical plan if you need medical care right away
  4. Health protection allows private, convenient and fast treatment, even in foreign medical institutions, without complex queues and bureaucratic procedures.
  5. Health protection provides benefits for outpatient, hospital, surgical and maternity care.
  6. The amount of health insurance premiums varies depending on the insured person’s age, health condition, and coverage services.

Therefore, it is best to get health insurance when you are young and healthy.

Both life insurance and health insurance are important, but if you have to decide first, get health insurance, especially if you don’t have the right insurance at work. Meeting your protection needs can protect your financial security against future unpredictable spending shocks. Come on, spirit of insurance! 

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