the sense and purpose of life insurance
Life insurance, health insurance, best insurance
insurance is important - habibieDalam insured life
insurance is caused by the death (death). The deaths resulted in loss of income
of a person or a particular family. Risks which may arise in the life insurance
mainly lies in the timing (time), therefore it is difficult to know when
someone dies. To minimize these risks should be insured life insurance
customers.
What is a life insurance?
Understanding life insurance is the insurance that
aims to bear against unexpected financial losses caused by the death of his
life too fast or too long. Here illustrated that in life insurance, the risks
faced are:
1. The risk of death.
2. Life someone too long.
It is, of course, will bring a lot of aspects, if
the risks inherent in a person is not insured with a life insurance company.
For example guarantees for descent (dependents), a
father that died prematurely or with a sudden, the child will not be neglected
in her life.
It could also happen to a person who has reached the
age ketuaannya (old age) and not being able to earn a living so it is not able
to pay for her children, then by a customer at Allianz life insurance risks
that may be suffered in terms of lost opportunities to earn a living will be
borne by insurance company.
Life insurance institutions have boondoggle with the
main goal is to assume or guarantee person against financial losses. Below we
can see how important the role and purpose of life insurance.
1. In terms of the general public (social)
Life insurance can provide certain benefits to the
individual or society, is as follows.
- Reassuring head of the family (husband / father), in the sense of giving income security, education, if the head of the affected families which caused death.
- By purchasing a life insurance policy can be used as a tool for saving (saving). In general, the per capita income of the people is still very low, therefore, in practice it appears that people's desire to buy a little life insurance.
- As a source of income (earning power).
This can be seen in countries that have been
developed, one which is "key" in the company will be insured by the
company where he worked. This needs to be done given the importance of the
position he held. Many would least affect on the lives of the company's going
concern (ongoing). For example an atomic / nuclear will be insured his soul
when he dies or illness, the company is obliged to pay compensation. These
examples do not we meet in Indonesia, because our country is not yet so
advanced in the industry when compared to western countries.
- Another purpose of life insurance is to ensure the treatment and warrants to suppose that insure offspring can not afford to educate their children (scholarship / education). That many of us encounter in practice is, insurance coverage for the risk of death, while the rest of coverage yet so advanced rapidly.
2. In terms of the government / public.
Life insurance companies in our country are large
operations, generally belongs to the government. Here we connect with
government regulations, namely Law No. 19/1960 on the division between state
enterprises. The division of activities as listed in the following sectors.
- Production sector (state industrial enterprises, state-owned plantation company, and the state mining company).
- Marketing sector (commercial company).
- Sector provision of facilities (state insurance companies, government banks and other state-owned service companies).
It can be concluded here that the insurance company
is a financial institution that provides financing facilities to be used in the
stage of economic development of Indonesia. Based on Law No. 19/1960, turns
contribution to the economic development of insurance institutions are:
- As a means of capital formation (capital formation).
- Savings institutions (saving).
So it can be said that the purpose of the insurance
company is to help build a national economy in the field of life insurance per
accordance with Repelita, by prioritizing the needs of the people and the peace
and pleasure of working within the company towards a just and prosperous
society materially and spiritually.
Glance E-Insurance
Glance E-Insurance
Demand
transparency in the financial services sector, including insurance companies
are affected by the growth of the information society in Indonesia are getting
used to finding information on the Internet. According to Khan and Ismail
(2012), the Internet became one of the resources most frequently used by the
community. Compared with other financial institutions sector, intensive
applying for achieving sustainable competitiveness, the insurance sector is
relatively slower in applying the principles of e-commerce (Grossman et al,
2004).
According
to Ahonen and Windischhofer (2005), the insurance business that has characteristics
of complex products or services face significant challenges in developing
insurance services based electronics. The shift to a form of media or
information systems that can be accessed by the public requires a paradigm
shift in the management of information, both internally and externally.
Insurance contribution against Economy
Insurance contribution against Economy
This
article describes the conditions and contribution glimpse of insurance
companies in the national economy. Changes in the external environment, in
particular economic variables will have an impact on insurance companies.
Economic growth as well as growth in people's income is a factor that can
influence the potential and prospects of the insurance industry. At the macro
level, the insurance company's performance will be affected from the decline in
activity or the economic development of a country. Some studies show the
relationship between the insurance industry and economic growth in one or
several countries.
Theoretically
the relationship between insurance development and economic growth are causal
relationship, but the critical question is which one is more powerful as a
major contributor? Or in other words, which are at the cause and effect.
Economic growth supports the growth of the insurance or insurance growth to
support economic growth? The answer requires in-depth analysis, which combines
theoretical and empirical perspectives. Theoretical standpoint means discusses
general insurance principles associated with the source and use of dana-
related to the mobilization of public funds in the form of premiums and the
management of these funds for investment purposes. The principle was
subsequently linked with the insurance position as a financial institution in
the mechanism of circular flow of income- a simple economic model that
describes the interconnectedness between economic operators.
In
2013 the total value of world premium in the amount of USD 4,640,941 million
consisting of life insurance premiums of USD 2,608,091 million and general
insurance premiums amounted to US $ 2,032,850 million. By using nominal values,
premiums decreased in 2013, but when adjusted for inflation, total premium
world showed growth of 1.4% for total, 0.7% for life insurance premiums and
2.3% for general insurance. ASEAN region experienced relatively higher growth
than the world average is 9.5% for total premiums, 10.1% for life insurance
premiums, and 8.1% for general insurance.
Indonesian
insurance penetration is still below the world average, Asia, and ASEAN.
Insurance penetration in Indonesia by 2.1 percent to total premium, while the
world average, Asia, and the third consecutive ASEAN amounted to 6.28%, 5.37%
and 3.35%. The position of the insurance density is also relatively the same
which is still below the world average. Premiums per capita Indonesia row of
USD 77 for a total premium, USD 59 for life insurance, and $ 18 for general
insurance. This value is still below Singapore, Malaysia, and
Thailand-spoken-also has reached USD 2388, USD 341 and USD 214 for the total
premium, but still above the Philippines and Vietnam amounted to USD 54 and USD
23. The low insurance density can be understood as the Indonesian population
greater. Indonesia still has a huge potential if relying on the potential of
the population, especially if supported by revenue growth.
Understanding Health Insurance
Health
insurance is one of the types of insurance products that specifically
guarantees the maintenance cost of health care or insurance clients is if they
have health problems or accidents. Broadly speaking there are two types of
treatments are offered by insurance companies, namely outpatient and inpatient.
Outpatient
Outpatient
insurance covers the cost of a doctor, diagnosis / lab, and medicine. The costs
incurred are usually determined by the maximum limit for each component per
visit / per year and a maximum frequency of visits in one year. Restrictions
can also be enforced by requiring GP referral before a visit to a specialist,
or coverage only given when health services performed by the service providers
listed. Outpatient insurance is usually only an additional benefit of
hospitalization insurance. In other words, should be the one with the
hospitalization insurance.
Inpatient
Hospitalization
insurance covers the cost of inpatient care in hospitals, which includes the
cost of the room, physician services, drugs, laboratory / diagnostic support,
surgery, etc. Hospitalization insurance classification is usually done by the
class room.
Insurance history
History beginning Insurance
Insurance
originated from the people of Babylon 4000-3000 BC known as Hammurabi
agreement. Then in 1668 AD at the Coffee House Lloyd's of London London stands
as the forerunner of conventional insurance. Sources of insurance law is a
positive law, natural law and existing examples as culture.
Insurance
brings economic as well as social mission with the premiums paid to the
insurance company to guarantee adanyatransfer of risk, namely the transfer
(transfer) the risk from the insured to the insurer. Insurance as a risk
transfer mechanism where the individual or business move some uncertainty in
exchange for premium payments. The definition of risk here is that uncertainty
occurs whether or not a loss (the uncertainty of loss).
Insurance in Indonesia started in the Dutch
colonial period, associated with the success of the country's companies in the
plantation sector and trade in Indonesia. To meet the needs of assurance of
continuity of business, certainly required of insurance. The development of the
insurance industry in Indonesia had a vacuum during the Japanese colonial
period.
Insurance history in Indonesia
Insurance
business into Indonesia during Dutch colonial rule and our country at that time
was called Nederlands Indie. The existence of insurance in our country as a
result of the success of the Dutch in the plantation sector and trade in the
colonies.
To ensure
continuity of business, then the insurance is absolutely necessary. Thus the
insurance business in Indonesia can be divided into two periods, namely the
colonial period until 1942 and the period after World War II or the time of
independence. At the time of the Japanese occupation army for approximately
three and a half years, almost did not record the history of the development.
Insurance
companies in the Dutch East Indies during the colonial period were:
The companies founded by the Dutch.
Companies that are branch offices of insurance companies
headquartered in the Netherlands, the UK and in other countries.
With the
monopoly systems that run in the Indies, the development of insurance in the
Dutch East Indies restricted to commercial activity and the interests of the
Dutch, British, and other European nations. The benefits and the role of
insurance is not known by the public, especially by indigenous communities.
This type
of insurance has been introduced in the Indies at that time was still very
limited and mostly consists of fire insurance and transport.
Motor
insurance still play a role, because the number of vehicles is still very
little and only owned by the Dutch and other foreign nation. In the colonial
era not recorded a single insurance company. During the World War II activities
of insurance business in Indonesia practically stalled, mainly due to the
closure pemsahaan- insurance company owned Dutch and English.
Insurance era of independence
After the
war ended, the company and the British-Dutch company resumed operations in this
country already independent. Until 1964 the insurance industry market in
Indonesia is still dominated by a foreign company, especially the Netherlands
and the United Kingdom.
In the beginning operate in Indonesia they established a body
called "Bataviasche Verzekerings Unie" (BVU) in 1946, which conducts
collective insurance. Thus from each closing, each member BVU obtain a certain
share. How this is done in view of the circumstances at the time the power has
not been regular and insurance are lacking at all.
In 1950 the company established a first loss insurance,
namely NV. These Insurance Indonesia which then in early 2004 has become PT MAI
PARK. At that time, as a pioneer of national insurance companies first, then
the company must compete with foreign insurance companies that excel both in
the capital factor nor the technical knowledge.
With the
establishment of the national insurance company, courage national entrepreneurs
are encouraged to set up insurance companies. Courage is also supported by
government regulation that all imported goods must be insured in Indonesia.
This arrangement is intended to combat the use of foreign exchange to pay
insurance premiums abroad.
In 1953
also stood a national private company engaged in reinsurance Dutch and British
in Indonesia, the use of foreign exchange to pay reinsurance premiums abroad
also remains large. To cope with this, founded in 1954 a professional
reinsurance company, namely "PT. REINSURANCE .UMUM INDONESIA "which received
support from state banks.
The latter
institution issuing binding regulations for foreign insurance companies to
menggunakanjasa national reinsurance company. The steps taken by the government
in this case provide the expected results. Activity PT. General Reinsurance
Indonesia in 1963 extended the life reinsurance activities.
At the time
PT. General Reinsurance Indonesia was established, many insurance companies
have sprung up nationwide, but its development is still hampered by heavy
competition from private insurance companies are foreign. At the time of the
struggle mengembaiikan West Irian to the Republic of Indonesia, the government
nationalized the Dutch-owned company. British companies were nationalized in
the confrontation.
Types of Life Insurance in Indonesia
Term Life Insurance
insuranceAsuransi term life term life (futures)
serves to provide protection to the insured within a certain period only. The
advantages of this product is the customers get the freedom to determine
premiums according to their abilities. Ideally, insurance premiums starting
from Rp. 250,000 per month.
Another plus is the sum that can be obtained by the
policyholder could reach billions of dollars. This means that when the insured
dies while the contract period is still active, then the family of the insured
will get the insurance money very much.
Meanwhile, the lack of term life insurance is the
insured may lose policyholders and their insurance money if he did not have
health problems and died until the contract expires. This makes a lot of
insurers began to abandon this insurance product.
Whole Life Insurance
whole life insuranceAsuransi whole life (lifetime)
is an insurance product that provides the benefits of protection up to 99
years. The best part is this insurance allows policyholders to obtain cash
value and the policy that has been paid. Another added value is if the insured
can not pay the premium installments regularly, they can use the cash value of
premiums already paid to pay further premiums.
Kekuranganya is the insurance premium is more
expensive than term life insurance premiums (can be 2-fold or even more). This
is caused because the life expectancy of the people of Indonesia for men is 65
years, while a woman is 70 years old so that insurance claims before the end of
protection there must be.
In addition, the cash value and the total premium
that is given is not too much because the insurance rate is only 4% of it per
year. The worst part, the interest will be taxed so that customers can only
receive the cash value is low or even none at all.
Endowment insurance
endowmentJenis insurance latter are endowment
insurance (endowment) which is a term life insurance as well as savings. This
means that the policyholder can get the cash value of the insurance premium
already paid and could draw the insurance policy within a certain time before
the contract expires. For example, the insured needs education funds to send
their children, then he can claim his life insurance policy with an insurance
record is only given in a few years according to the agreement.
Disadvantages of this insurance product is fairly
expensive premiums because this product has two functions. This makes this type
of insurance is only interested by the upper middle class who can afford to
spend millions of dollars to pay a premium per month.
For additional information, there are now manifold
Unitlink life insurance is increasingly popular because of the type of life
insurance has value and investment protection promise. This means that
customers who buy insurance unitlink not only get a guarantee of protection,
but also the value of investments with high interest annually as well as
additional benefits.
These investments are managed entirely by the
insurance, the policyholder just waiting for the distribution of profits alone.
However, unit-linked insurance also has shortcomings where the policyholder
will only get lower insurance policy if their investment fails or produces only
slight gains.
Life Insurance
Types of Life Insurance
life insurance cSebelum discusses the types of life
insurance, if any of you who still think that buying life insurance is not
important? If there is, it's good to listen to some facts below that make life
insurance is so important for the entire community:
- Every 7 people who died in Indonesia, one of them because stroke.-Ministry of Health of Indonesia, 2011.
- Deaths from non-communicable diseases increased to 59.5% in 2007.-Minister of Health Endang Rahayu Sedyaningsih 2011.
- Based on the survey of World Health Organization (WHO) in 2002, 10 causes of death in Indonesia is coronary heart disease, tuberculosis, blood vessel disorders, respiratory diseases, diseases of the newborn, lung disease, traffic accidents, diabetes mellitus, high blood pressure, and diarrhea ,
- Tower Watson's 2011 Global Trends Medial mention health care costs in Indonesia meninggkat 10 to 14% in the last three years.
These facts are enough logical reason to buy life
insurance. You certainly do not want it when you died or suffered permanent
disability troubling your family?
Well, if you're interested in buying life
insurance, you must know in advance the types of life insurance in order to buy
the right insurance products. Currently there are three types of life insurance
products used by life insurance companies in Indonesia.
