Additional Types of Insurance You Can Use

 

 Before buying an insurance product, we must know clearly what benefits will be obtained from the product. In fact, we often neglect or even do not pay attention to all the contents in the insurance policy that we will buy. Not only you, most people who use insurance services often experience it.

Lack of attention can make you spend money on inappropriate needs. Moreover, the number is not small because most people will take a number of policies that are of considerable value for various insurance services. Avoid these risks because every penny of your money is so valuable. That's why it's so important that you know where the money is going.

Additional Types of Insurance

The Need for Additional Insurance

Not only in basic insurance, some people have also made mistakes when buying additional insurance policies. Additional insurance or what we know as riders is an additional feature / service in the main insurance that you use. That is, the feature can be used or not by you, depending on the needs and completeness of the insurance you use.

Misunderstanding the various benefits and benefits that you will get in an additional insurance, will certainly make you spend some more money that does not suit your needs.

Many people use additional insurance services without knowing clearly what coverage and benefits they will get. In the end, some realized those various features they really don't need. Their money came out for free.

In order to avoid such cases, you should learn and know clearly what additional insurance is. The following are some of the additional types of insurance that you often encounter in insurance services.

1. Waiver Premium

One of the additional insurance most often added to the basic insurance service. Although every insurance company understands it is not the same, broadly speaking premium waivers can be interpreted as services that will guarantee premium exemption due to the total incompetence of insurance policyholders.

What you need to look at is the total incompetence mentioned above. Know clearly the details set by the insurance company. Is total incompetence related to a condition that is not capable of certain diseases or just injuries? Or it could be both.

You also have to pay attention to other provisions made by the insurance company. For example, the waiting period for the rider to apply if you are at any time in a situation of total incompetence. Usually the insurance company determines that the delivery of new riders can be done after six months of submission. That is, for six months you must pay the policy as usual. The number of riders may be fairly small, but it is very important for you to know the benefits and conditions before deciding to buy.

2. Payor Benefit

These riders are almost the same as the premium waiver. That is made to bear the risk of the total incompetence of the insurer. The difference is, payor benefits are intended for other dependents, such as family members who you insure. While the premium waiver is only you will be covered. Therefore, payor benefit is usually taken as child education insurance or the like depending on meeting the needs you are looking for.

What you need to look at from payor benefits is the concept that is fairly unusual. For example, parents as policy payers die, their children who are insured will not get some insurance coverage money. The insurance company actually pays / continues the child's insurance policy until the payment period is completed. And the police can be used by the child.

It may sound so helpful and properly tackle the problem. In fact, not everyone thinks so. Because some people will think why the sum insured is not handed over directly to the child? Later the fund can be invested into other investment instruments that are much more profitable.

3. Health Insurance Riders

One of the riders that is often added to the basic insurance. Unfortunately, most people do not understand and understand what and how exactly the benefits will be obtained from these riders.

For those of you who need health insurance, you should buy this insurance alone without including life insurance in it. However, many people are misguided. They actually buy a life insurance policy that has health insurance riders in it. It's the same as wasting money for free.

Health insurance that is used as a rider in life insurance is basically almost the same as inpatient insurance that you can buy directly. Moreover, you are not necessarily able to extend the health insurance riders when the time is over. For example, because your risk is quite high and you've made frequent claims in the past year, your health insurance riders otherwise can't be renewed. Or the insurance company will charge a high premium because of your high risk.

4. Riders Critical Illness

Also included is one of the riders that many people misinterpret. Basically, rider critical illness is a coverage for the risk of various "critical diseases" that may be suffered by policyholders. However, the definition of critical illness that an insurance company refers to is often understood differently by policyholders.

Generally, insurance policyholders argue that if diagnosed with a number of diseases that fall into coverage coverage, they will get reimbursement. However, in reality, the insurance company will only pay a claim if you are in a critical condition due to the "critical illness". That is, if you are only newly diagnosed, the insurance company will not provide compensation for it.

Watch before buying.

Everyone's need for an insurance service is different. That's why some additional insurance /riders are provided by insurance companies. Unfortunately, there are often cases where customers buy improper riders. This occurs due to a lack of understanding on the contents of the policy used. Therefore, pay attention to your needs and the riders offered. Just decide which one you want to buy.