Since our life and everything related to our life is important, we definitely need insurance. But what is insurance and how does it help us? We always hear about insurance benefit whether it is life insurance, health insurance, or other types of insurance. We’d like to talk about the benefits of assorted insurance types to help you deciding which insurance you actually need.
Among so many types of insurance, we’ll see about general insurance, health insurance, car insurance, home insurance, and their benefits. The details are going to show you what you will get when you sign an insurance policy. Be sure to finish this before signing any insurance policy so you won’t regret your decision in the future.
General Insurance Benefit
Even though insurance is divided into some different types, we’ll firstly discuss about the benefit of insurance in general. First advantage of general insurance is the economic protections. Insurance is providing financial and economic protection especially to insured. This insurance is going to provide financial protection if pre-matured death happens.
Moreover, the insurance usually also covers properties loss because of fire, theft, natural calamities, and accidents. Another general insurance benefit is the shares risks. We may face assorted uncertainties and risks that may cause big losses. There is no way to eliminate uncertainties and risks but we can share or reduce them with insurance as co-operative device.
Insurance is going to help sharing risks among insured. Insurance company will reduce risk of insured if the insured is willing to pay small premium. Another advantage of insurance is it maintains our living standard. Insurance company is providing safeguard in money terms in order to avoid financial crisis that’s unfortunate. Next advantage provided by insurance is the saving.
Insured person may have to pay the premium as mentioned in agreement which is encouraging insured to try saving habit. Insurance is an excellent way to encourage regular saving since it helps insured one reducing unnecessary expenses. Also, insurance is eliminating dependency. Because of properties destruction or death, family may suffer from table losses that are unbearable.
Luckily there is insurance that’s protecting family from the unbearable losses. Insurance policy is giving financial support especially to ones being left which is helping them to eliminate people dependency. Loan is another benefit provided by insurance company. Insured is allowed to use loan facility from insurance company. Or he is allowed to take loan offered by another financial institution.
Insurance is also creating employment opportunities. Since insurance is a modern business, many entrepreneurs along with huge amount of employees engage in this business. Insurance companies providing employment opportunities so many people who qualify won’t be jobless by joining the business. Promoting foreign trade is the next general advantage of insurance.
Insurance company has been helping international trade to grow. Fire may burn businessman’s merchandise to ashes and bring him down. Calamity may be waiting for a ship in the sea. But insurance is ready to help educing those risks so exporter and industrialists can focus on promoting their business. Insurance however, is helping business to run smoothly.
Business can get financial compensation if business properties are damaged or loss happen, thanks to insurance. Insurance is also reducing the inflation while developing the economy. Inflation is the increase of service and goods price. This may give the citizens painful experiences so inflation must be controlled. In controlling inflation, money volume by be reduced. How come insurance company helps here?
Insurance company will take money from people in premium form. This will reduce money volume in market and help controlling country’s inflation. The companies of insurance also collect the premium through nonlife or life policies that are invented in assorted development areas. The investment will help promoting industry and trade in country. This is going to help for country’s economic development.
Life Insurance Benefit
As we are aging and as our family’s finances and health change, we will automatically consider life insurance. But some of us may not sure that life insurance will worth investment. That’s why we’re going to see the life insurance benefit and some disadvantage of life insurance. Hope these details below will help you think before making a decision to buy or reject the life insurance. Let’s begin with the benefits.
1. Life insurance providing protection
Death benefit is the first and primary advantage provided by life insurance. Dying without life insurance is not only causing emotional problems but also financial for our loved ones we leave behind. With no life insurance, our family we left have to work hard to make money to pay funeral and other expenses. We want to help them though we’re not around anymore, aren’t we?
2. Life insurance kicking away all worries
Life insurance comes in some options including 30, 20, and 10 year term. Another option is the permanent life insurance that is going to last for our entire life. Or, pick the universal life insurance that will include the guaranteed universal life, survivorship life, variable universal life, and indexed universal life. Those life insurance terms are going to keep everyone away from worries.
3. Cash value provided by life insurance
Unfortunately, only the permanent life insurance will provide cash value. No cash value is provided by term life insurance. But, depends on policy design, cash value can grow as time goes. Do we need cash value from this life insurance? Cash value allows us to fund purchases using cash like paying off the debts or buying home.
4. Tax benefits offered by life insurance
When we’re using the policy loans of life insurance we may not be required to pay the taxes on the growth of our cash value. Besides, the entire policy loans will be free from any income tax. Even most withdrawals of cash value will be tax-free if only it is not surpassing premiums that are paid into policy.
5. Flexibility benefit of life insurance
The policy of life insurance offers us great flexibility especially over the company we choose, policy, duration, and coverage, beneficiary. And when we pass away, many insurers allow our loved ones spending death benefits on whatever that is required. Some policies even let us to decrease our premiums along with the death benefit when our income decreases.
6. Cheap price of life insurance
Rates of many life insurances are now affordable, especially the term life insurance. This insurance benefit is even much better since many companies are competing with each other to provide the cheapest insurance. What’s more pleasing than something we really need is now available in low price? Life insurance is truly a good investment.
Insurance Benefit Comes with Disadvantages
Unfortunately, life insurance comes with some disadvantages behind the insurance benefit it offers. Though the disadvantages of life insurance are not as much as the benefits, they influence our decision to buy policy. Below is a list of life insurance disadvantages you really need to consider before purchasing life insurance policy.
1. Opportunity cost
People are seeing life insurance as luxury in market today. This happens since we always think about what we will get if we spend our money in the other places. We’ll wonder where extra money can go if we are not paying the premiums. If you can kick this thought from your head, think about your family. What will happen to them when you leave with no life insurance?
2. Stuck between permanent and term
Most of us cannot choose between permanent and term life insurances. This is especially more complicated for young ones. The premiums must be paid by young people may be way higher than the policy of term life insurance. But young people can choose policy which can be paid up in ten years with no other premium to be made.
3. Less people trust in life insurance
Many people don’t trust huge corporations so they won’t give their money to those companies believing that companies may collapse anytime. But today, there’s no reason to worry about companies legitimacy, just choose company of life insurance that is secure financially. That’s all disadvantages of life insurance, still not sure to get one to help your family in the future?
Insurance Benefit Provided by Employers to Their Employees
Many employers are trying to provide insurance for their employees. Does it really necessary? Is it okay if we’re not providing insurance for employees? If you want your employees stay, the answer of both questions above will be yes. Let us see some insurance benefits for employees then you can decide to provide insurance for employees or not.
1. It is easy to get insurance for employees
If you believe getting insurance for employees is complicated, you’re totally wrong. You can get the insurance by cooperating with advisor in health insurance or a broker. They will guide you by helping you choosing plan which is right for your employees and yourself. You’ll be helped to choose plan that’s based on the industry of your company along with coverage preferences.
2. Health insurance is making your employees happy
Happy employees are keys for better business, and health insurance is one thing that makes them really happy. Vacations are making your employees happy as well as pension plans but the first place is still the health insurance. This is because health insurance is making your employees’ family feel safe though something bad may happen to insured while working.
3. This helps you saving money on the taxes
This is the biggest insurance benefit you can get. Employees and employers can pay the insurance cheaper when the insurance is purchased as group. It is better to pay for the health benefits than higher salaries. This way leads you to save money since don’t have to pay the payroll taxes. Besides, many employees prefer health benefits instead of salary.
4. Insurance is giving access to many hospitals and doctors
Since insurance networks for group are bigger than the insurance networks for individual, you’ll get wider access. There will be more hospitals and doctors you can access on group plan which usually don’t accept the individual plans. However, the network is different depends on the state you live. Purchase group plan now and increase the access to better hospitals and doctors.
5. Boosting the productivity of employees through health insurance
Your employees will focus on working and being the most successful and productive one at work. That will be possible when they get health insurance. Explain health insurance benefit to your employees and tell them why they need one. Build their trust and get them health insurance for employees and you’ll see them helping you developing your business.
Car Insurance Benefit
Another type of insurance which is popular today is vehicle insurance or car insurance. Many of us do our best to get our favorite vehicle and once we get it we’ll do anything to protect it. If you love your car so bad, you absolutely need to consider getting car insurance. But, as always, let us check car insurance benefit before you reach your final decision whether getting or skipping car insurance.
1. Car insurance is protecting you from any financial liability
If you’re not sure you can pay for damages caused by accident, you need to get car insurance. Car insurance is going to help taking care of expenses involved in replacement or repair of your car. Besides, if there is medical cost for passengers and driver, car insurance will help by covering it too.
2. Car insurance is covering your medical costs
When your car gets an accident, you may be inside it and you may need medical care. Cost of medical care can be really expensive but it can be covered by car insurance. Driver is not the only one covered by car insurance. Your family or friends who are in the same vehicle when accident happened will also be covered.
3. Car insurance preparing you for the law requirements
First owner of a car usually is required to get car insurance. Liability insurance is the least required to be owned by first owner of car. You may lose your license in your first accident if you have nothing to present. In this case, car insurance is not only protecting your life and vehicle but also keeping you away from troubles.
Travel Insurance Benefit
Travel insurance will be the last thing people consider since they believe they can take care of themselves while traveling. Unfortunately, something bad such as medical emergencies, lost possessions, and cancellation may happen during the holiday, turning holiday to disaster. Travel insurance has some benefits you will see down here.
1. Travel insurance covers cancellation
Cancellation cover will cover some pre-paid costs such as accommodation, car hire, and transport that other sources cannot cover. Cancellation cover is going to cover some cancellations caused by some reasons. However, you need to read the policy wording in order to gain full details about cancellation cover provided by insurance company.
2. Travel insurance helps emergency repatriation and medical expenses
What are you going to do when you need emergency medical treatment when you’re abroad? Communicating with doctors and paying the treatments can be scary when you’re away from your country. That’s why you need to consider getting travel insurance. Some policies are not only covering medical treatment abroad but also covering the cost to bring your back if necessary.
3. Travel insurance protects your gadgets, documents, and possessions
Most annoying but common holiday disasters are involving personal possessions like delayed baggage, damaged gadgets, and lost passports. Travel insurance is going to cover those problems’ costs. Yet, you still have to check the policy to be sure it covers important items you take abroad.
4. Travel insurance covers your activity abroad
There will be so many activities we’d like to do during holiday travel like winter sports, bungee jumping and others. It is really important to make sure that you are totally covered when doing those activities. If something bad happens during activities and you’re injured, the bills can be truly pricey. Check the activity lists offered by travel insurance company to be sure.
5. Travel insurance helps you facing personal accident abroad
Thinking about bad things happen during your holiday travel may make you feel uncomfortable. But we want to anticipate and travel insurance is a good friend in anticipating. Travel insurance usually covers accidental disability and death. This means travel insurance will pay benefit if you become permanently disabled or die because of accident during the holiday trip.
6. Travel insurance provides legal advice for safer and more secure holiday trip
If in case there’s need to look for legal advice during your holiday trip abroad, some travel insurances offer legal cover. The legal cover offered by travel insurances will also help you pursuing legal claim when you’re on holiday. Unfortunately, not the entire travel insurance companies are providing this legal cover. Make sure you check the policies for this detail.
Still not interested to buy any insurance policy? Bad things happen everywhere, every time. We have no idea what will happen five minutes from now but we can anticipate. Each type of insurance offered by insurance company is giving assorted benefits for us, our loved ones, and our properties. Those insurances surely are the best anticipation we can make to face the terrible things we may face.