Insurance Protection Triangle: Benefits and Functions of Each Insurance

Queenews.com- Whoever you are, whatever your job, age, and marital status, you will never escape life’s risks. As the saying goes, life is like a spinning wheel, sometimes you are happy, but sometimes you can experience difficulties.

Bad things that happen can have a negative effect on your physical, mental, and even financial condition. Financial risks can occur when you experience:

  1. Natural disasters, such as earthquakes that damage your home and valuables
  2. Illness, which makes you have to pay for medicine and hospitalization
  3. Criminal acts, such as theft of valuables
  4. Loss of livelihood, due to Termination of Employment or death

We can’t be sure when bad things can happen. However, you can prepare yourself from now on by having an insurance product. Insurance functions to protect all assets that you have, including yourself and your family from financial risks in the future.

Unfortunately, many do not understand the benefits of insurance, especially health insurance, critical illness insurance and life insurance.

These three insurances are an important part of the Insurance Protection Triangle which provides maximum protection for every stage of life. Actually, what is meant by the Insurance Protection Triangle and what is its function?

Find Out About the Insurance Protection Triangle Below

As with the financial planning pyramid, the insurance protection triangle also starts from the bottom, namely health insurance

1.Health Insurance

Health insurance is the first and most important stage of protection that protects your health. No one wants to get sick or injured, but when this happens, you will usually need medical attention and a hospital stay.

Without health insurance, you have to reach into your pocket to pay for treatment. Not to mention if you are forced to take time off from your job during the recovery process. This will have a negative impact on your financial condition.

With health insurance, you no longer need to worry when you fall sick or have an accident. Health insurance will protect you from high and unexpected medical expenses. You can also get free preventive care such as vaccinations and health checks.

Most importantly, you can buy health insurance products for yourself and your family, such as your spouse, parents or children. So, you are not only protecting your own health, but also guaranteeing the health conditions of your loved ones.

Health insurance is located at the very bottom of the insurance triangle. That is, this is a fundamental protection that you must have in the early stages of life. While you are young and excited about pursuing a career, sign up for health insurance so that you are more focused and more financially stable.

2.Critical Illness Insurance

After having health insurance, the next stage of protection is critical illness insurance. This is because health insurance will cover the initial costs of examination, treatment and hospitalization, but not up to the follow-up treatment needed for critical illnesses.

Critical illness is a type of illness that requires further treatment and takes a long time to heal. Critical illness is usually caused by an unhealthy lifestyle, for example stroke, cancer, diabetes, heart disease, kidney failure and so on.

Based on WHO 2020 data, critical illness is included in the top 10 causes of death in the world, which claim up to 55.4 million lives every year. In Indonesia alone, this disease is also the biggest cause of death according to BPS data.

With critical illness insurance, you can get additional protection for medical emergencies that cost more. Because these costs are generally not covered by regular health insurance. By adding critical illness insurance, you can protect yourself from financial risks through the benefits offered.

You should have critical illness insurance if you already have health insurance. Get to know your financial and health conditions. Critical illness insurance usually has higher premiums than regular health insurance, therefore, make sure that the income you have is able to cover the amount. Check for hereditary critical illness. If there are signs of a hereditary disease, then you should immediately get critical illness protection.

3.Life Insurance

Life insurance is a further step at the very top of the insurance protection triangle. This insurance is needed to provide financial protection for your family in the event of a risk of death during the insurance coverage period, so that loved ones can continue it’s his life.

If you have a family, life insurance can replace your role in protecting your family after you die. Life insurance provides your family with benefits in the form of a lump sum in the event of death during the insurance coverage period. Lump sum itself is a lump sum payment at one time. With this money, your family will still be able to continue their lives even if they lose their main breadwinner.

If you are single and don’t have a family, life insurance can provide a valuable legacy for your parents and siblings to help them move on with life.

The Importance of Understanding the Insurance Protection Triangle

Up here, you already understand the importance of insurance and the insurance protection triangle to protect yourself and your family from the risk of financial loss that may occur and can determine priorities for the type of insurance that needs to be owned first.

Including insurance in your financial plan will help you to be better prepared to face all possibilities if life risks occur. With insurance, you can take care of yourself, maintain the standard of living of loved ones, and help shape the future you want. Therefore, consider if you currently do not have insurance to support your life.

Choose insurance according to your financial condition and future plans that you want to aim for. If you are still confused about insurance options, see What Are Your Future Plans? from Manulife Indonesia to help you make the best decision.

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