2 Things That can keep an Insurance Policy active

The pandemic, which has been going on for almost two years, has increased public awareness of the importance of insurance.

The pandemic, which has been going on for almost two years, has increased public awareness of the importance of insurance.

This is reflected in OJK data which shows that as of July 2021, insurance penetration or ownership among Indonesian people reached 3.11%. Increase compared to the end of 2020 of 2.92%.

With insurance, a person can manage the risk of financial loss that may arise due to certain events. Some basic things that need to be met include a steady income, especially if you are the breadwinner, because your income can be used for medical expenses if you are sick or have an accident, as well as protecting your assets. there is no risk of loss or damage.

To enjoy insurance benefits, insurance buyers must fulfill a number of obligations. Starting from the most basic, namely paying insurance premiums according to the provisions of the insurance contract. Therefore, to continue protecting your insurance policy, follow these simple steps

1. Pay your insurance premiums on time

Insurance premiums are a number of payments agreed by the policy holder to be paid to the insurance company as the risk bearer.

The insurance value is clearly stated in the insurance contract. Insurance premiums are the result of a risk transfer agreement signed between the policy holder and the insurance company, within the framework of ordinary insurance (risk transfer). Meanwhile, sharia insurance applies a risk sharing system.

In order for the insurance contract to remain valid, pay the insurance premium according to the terms of the contract. Premiums can usually be paid monthly, quarterly, semi-annually and annually.

The insurance contract can end (perish) if you do not pay the premium after the free premium payment period according to the applicable insurance product provisions. What happens if the policyholder cannot pay the premium on time? Usually, insurance contracts provide a free premium payment period (grace period) of 45 days from the due date.

Thus, insurance protection remains valid until the grace period ends. Your insurance policy will be forfeited if the premium is not paid before the grace period ends. Therefore, make sure you pay your insurance premiums on time according to the provisions to avoid confiscation.

2. Ensure investment value is available and complete.

For life insurance with investment returns such as bond units, the investment value is formed by the investment allocation of the premiums paid. The bond unit investment value is used to pay insurance and other costs (if any).

However, remain alert if the investment value is no longer sufficient to cover insurance costs or other expenses (if any). This means that you need to increase the investment value more precisely by increasing the amount of basic periodic insurance premiums, increasing the total periodic insurance premiums or just one-time insurance premiums so that the insurance contract is not canceled.

By paying attention to these two things, you can ensure that your insurance policy remains valid and provides the protection you need. Easy right?

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