Who is the most important should be insured in the family?

 

In a family, there are many ways to manage our finances. We can allocate part of our income for life insurance. The function of life insurance is to reduce or minimize the adverse effects of family economic losses due to death.

In the family, there are no standard rules about which family member must be insured first. All family members are entitled to be insured. But let's think about it. A wife can continue to cook for her family because her husband gives her salary money to spend on food. Then their children can still go to school because of a father's salary to pay for their children's education costs. The lights, tv, radio at home can stay on because of a husband's salary to pay the electricity bill. And there are many more things that can be paid from a husband's salary.

So what would happen if a husband had an accident and died on his way home after a long day of work? So we can be sure there will be a lot of costs in the family that will be disrupted. The wife can no longer buy groceries. Their children can no longer go to school. No one pays for electricity bills. That will happen if a breadwinner never plans to prepare life insurance for himself. 

If a husband has prepared life insurance for himself. So if there is a risk of life such as death, the financial losses that will befall the family will be overcome. Through life insurance benefits, the wife can still buy groceries for the family. Their children can still go to school. Electricity, tv, telephone, radio can still work.

Then what if a woman does not have a husband? So she should be insured. Because there are still many costs that she must bear. If she has a family, there are children who must still go to school if there is a risk to her.

Indeed, life insurance cannot replace the lives of people who have died. But life insurance can reduce financial losses due to death and reduce the financial burden on families when the breadwinner dies.

Car insurance, is it necessary?

In my previous article, I explained several types of insurance according to their functions. And one type of insurance that I will convey here is car insurance. Actually, is car insurance important to us? If you already have a car, but you haven't insured your car, maybe now is the right time to find out which car insurance is best for you.

Car insurance is important for some people. Because we do not know what risks will occur on the highway. An example is an accident or even the loss of a car. Even though we have tried to drive our vehicles carefully, sometimes accidents cannot be avoided. For this reason, as our effort to avoid various risks, in this case our car, such as an accident or loss of a car, we should start looking for information and buy car insurance for our car.

Car insurance has two types of products:

1. Total lost only
2. All risk

You can choose one of the types of products above. Or you can also choose both of them for your car insurance. What is the difference between the two types of car insurance above?

1. Total lost only

As the name implies, total lost only. Offers car insurance benefits in the form of claims that can only be made if there is a risk of total loss of your car. The total loss in question is if there is damage above 75%. Or due to theft or robbery.

2. All risk

For this type of car insurance, the insurance company will provide comprehensive protection, whether it's minor damage or major damage. Usually the cost for this type of car insurance is relatively more expensive compared to total lost only car insurance.

You don't need to worry anymore about choosing car insurance for your car. Whether it matters or not the decision is yours.

How much life insurance funds should I prepare ?

We already know that insurance is very important for us and our families. For example life insurance. There have been many cases where a family was greatly assisted by life insurance funds when, for example, the father died. So the funds from life insurance can be used to meet the necessities of life, education funds for their children, his wife's business capital, and others for the family.

If someone already understands, and decides to buy insurance, there will be questions. How much life insurance funds should I prepare? Actually there is no limit on how much life insurance a person must prepare. But we can start with 2 approaches :

1. Based on ability
2. Based on needs

Through these two approaches you can decide how much life insurance you should prepare. Maybe I can explain as follows:

1. Based on ability

You can prepare life insurance based on your current financial capabilities. Adjust to your financial condition. Don't interfere with other family expenses. Set aside a few percent of your salary, for example 10% to buy life insurance. You can upgrade the amount of life insurance later if your financial condition begins to improve along with your family's lifestyle.

2. Based on needs

If you decide to buy life insurance according to your needs, there is an easy way to answer the question "how much life insurance funds should I prepare?". The trick is to determine how much your living expenses will be in one month. Then you multiply by twelve months. After that, you divide it by the amount of interest at your local bank. Then you will get how much life insurance is ideal according to your needs. If something happens to the insured person, for example death. Your family can place these funds in a bank that has interest as you calculated. So from this interest your family can use for living expenses for 1 year. For subsequent years, the same can be done. Maybe you have another way to calculate how much life insurance is for you, you can try it. Because what I'm conveying here may only be one of many easy ways on how to prepare life insurance according to your needs

So, those are the two approaches we can use to prepare our life insurance. The sooner you decide, the sooner you and your family will gain security in terms of family finances.

Types of insurance

At this time, insurance is familiar to all of us. From the lower middle class to the upper class, they must have known what insurance is. Especially what are the benefits of insurance. Although many already know what insurance is, there are still many people who do not have insurance. Even though they already know the benefits of insurance.

Sometimes the reason why they don't or don't have insurance is because they are confused. Yes, they were confused about what insurance I should have. Because as we know, insurance has many types. And the types between one and the other have different functions. So that we must know which insurance we will expect, first identify the types of insurance that exist. Globally, some types of insurance can be distinguished as follows :

1. Life insurance
2. Health insurance
3. Education insurance
4. Investment insurance
5. Vehicle insurance
6. Accident insurance
7. Corporate insurance
8. Old age insurance

Life insurance

Life insurance serves to provide compensation in the form of financial assistance to the heirs when an insured person dies. Whether it is dying in an accident or dying of illness.

Health insurance

Health insurance serves to provide compensation in the form of financial assistance or in the form of guarantees when the insured person is sick. So when the person seeks treatment, the medical expenses will be covered by the insurance company.

Education insurance

Education insurance serves to provide some funds to your child. When your child is about to enter an education level. When you plan to create education insurance for your child, make sure you calculate it by including future education inflation when your child wants to study at school.

Investment insurance

This type of insurance combines life insurance as well as investment. Where when someone dies or becomes ill, the family will get life insurance benefits and also the results of investment development

Vehicle insurance

Your vehicle also needs to be insured. We don't know what's going to happen on the way. When our car accidentally hits a tree, or another vehicle. When that happens, the insurer will cover the cost of repairing your vehicle until it can be reused.

Accident insurance

This insurance works when the insured person experiences bad things such as an accident at work, or an accident on the go. When that happens, the company will provide compensation to the family for the accident that occurred. Because as a result of the accident, the head of the family can be confirmed to be unable to work. Then this insurance benefit can be a substitute for income lost as a result of the accident.

Corporate insurance

This corporate insurance is usually prepared by companies to protect their employees who work. Because employees for the company are an asset that must be maintained, so that the company's business continuity continues. This insurance participation is only valid for as long as the employee works in that company. If an employee resigns, he or she will no longer receive health insurance benefits from that company.

Retirement insurance

Old age insurance will provide a guarantee of a certain amount of funds to workers who have entered retirement. Because when entering retirement, employees no longer have income to meet their living needs. And through the old-age insurance program, employees will get some funds for their survival in retirement.

These are the types of insurance that exist. So, which insurance do you need? Let's find the information around you. And let's be insured.

Why do we need insurance

Everyone who is born will inevitably experience such a thing as life risk. Life risks can be illness, accidents, or death. We can't do anything about it when the risks of that life come to us suddenly. But we can deal with it in a way. Yes, that's right. By having insurance.

Insurance is very important to have, especially to the main breadwinner in the family. Because he is the one who is most at risk to experience unwanted events in the form of life risks in his daily work. By having insurance, he will be protected from financial losses due to the life risks he experiences, such as accidents, illness, or even death.

So, that's why we should immediately insure ourselves, our families, our assets. Before something bad happens. The sooner we are insured, the sooner we will get the security of protecting ourselves and our families.