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The Advantages and Disadvantages of Buying Insurance Products: Here's What You Should Know

The Advantages and Disadvantages of Buying Insurance Products Here's What You Should Know

Maybe some people think insurance is annoying. Especially when there are rumors where people say that it is difficult to claim insurance funds. It makes people lazy to use insurance.

In fact, it's just a rumor and using insurance can be very helpful in various urgent situations. The reason is, we never know what will happen to us in the future. Well, that's the role of insurance to help you.

Therefore, to help you better understand the role of insurance, here we provide the advantages and disadvantages of buying insurance products in general.

The Advantages of Using Insurance

Insurance agency is an insurance service company that has obtained permission from the financial authorities in a country. If you use insurance, you will get several benefits such as receiving compensation to policyholders caused by loss, damage, loss. The insurance company will also help you to be responsible to third parties that you lose due to unexpected events, such as accidents. By using insurance services, they will also provide insurance funds to the policyholder's family if the policyholder dies.

Meanwhile, there are several advantages of insurance that you can get. Some of them are as follows.

  • Insurance you can use as savings in the future. It really helps us because we never know what will happen in the future. That's why, by taking insurance, you are trying to prepare yourself to face bad situations in the future.
  • With insurance, you can be helped to manage finances. The reason is, there are a number of special funds that you have to pay to the insurance on a regular basis. Well, that will help you to refrain from spending money to buy useless consumptive items. So, insurance actually helps you to be more able to control your finances and determine priorities.
  • You can also transfer the worst risk to the insurance agency. How could that be? So, having insurance means you allow the insurer to take the worst risks when something happens that you don't want. That means the amount of premium paid is actually relatively small compared to your risk or loss.

Disadvantages of Using Insurance

In discussing the advantages and disadvantages of buying insurance products, we must also discuss in more detail the disadvantages of this insurance. What are they?

  • Your insurance fund can be forfeited if you don't pay the premium. So, you have to pay premiums regularly every month. If not, then your insurance funds will be forfeited. It doesn't matter, your funds are already in the millions, your funds will be forfeited if you stop paying premiums every month.
  • Part of the premium fund is used as profit for the insurance company. This can happen if you are late paying or stop paying premiums once, without making an insurance claim. Finally, your insurance funds will belong to the insurance company that you use.
  • Submission of limited insurance claims. There are costs that will be covered by insurance, some are not. For this reason, you must really read the insurance agreement carefully including dependents and what is not covered by the insurance company you choose.

So, now you know about the advantages and disadvantages of buying insurance products. Compared to the drawbacks, insurance actually has more advantages and tends to be more profitable. The reason is, we no longer need to worry about what will happen in the future because we already have insurance funds that will cover risks. So, are you increasingly interested in using insurance?

Faisal “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” — Albert Einstein

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