Insurance Terms You Need to Know

 Insurance Terms You Need to Know

Insurance Terms You Need to Know

Now insurance seems to have become a necessity for the community. Many have realized, by using insurance there are many unpredictable things in the future that can be anticipated.

Be it life insurance, health insurance, education insurance, or other insurance; What is clear is that various kinds of insurance can be our guide in the future. But very often when we are listening to insurance officers explain their products or when we are reading insurance product brochures we meet insurance terms that are difficult to understand.

It's good for us to at least know some insurance terms so that we understand more deeply about insurance.

There are several insurance terms that we often hear or read, namely:

Premium

Premiums are a kind of contribution that we pay to insurance companies every month. The amount can vary, depending on the insurance product. The amount of this premium can be discussed with the insurer to suit our abilities and needs.

Read also:  These are the benefits of insurance for businesses, SMEs must know!

Policy

A policy is a written contract or agreement between a customer and an insurance company related to the insurance product that the customer wants to use. This policy includes the amount of the premium, the period of insurance, the amount of coverage, and so on.

Benefit

Benefits are facilities provided to customers by insurance companies depending on the selected insurance product. By knowing the list of benefits that we get from an insurance product, we can decide what kind of insurance suits our needs.

Additional Benefits

Additional benefits are additional facilities provided by insurance companies but are not included in the package with the insurance products that we use. We can use this additional facility by adding it to our package and usually this affects the amount of our premium per month. With this additional benefit, we can cover the shortfall of our insurance package without the need to buy another insurance package that may have these additional facilities in the package.

Also Read: The Importance of Life Insurance Learn from the Late Vanessa Angel

Entry Age

Entry Age is the customer's age when signing the policy. Usually, this entry age is between the ages of 18 to 60 years. The entry age depends on the insurance product and the regulations of the insurance company concerned.

Age of Insured

Age of Insurance is the age of the customer when the insurance ends. This age of coverage can be limited in accordance with the provisions of the insurance product or it can be limited according to the customer's wishes.

Main Insured

The Main Insured is a customer whose name is listed on the policy and who signs the policy. The main insured gets all the facilities offered in the insurance package.

Additional Insured

Additional Insured are individuals other than customers who benefit from insurance. This additional insured can be the customer's husband, wife, or children.

Cash value

Cash Value is the result of investments or savings that are sometimes included in a package with the insurance product being sold. The cash value is uncertain because it depends on the stability of investment interest in the market. This cash value can be taken after the insurance period expires.

The value of coverage

Sum Insured is the number of costs that will be borne by the insurance company in the event of a claim. The amount may vary according to the initial agreement. The amount depends on the premium paid by the customer every month.

Policyholder

The policyholder is someone who has full power over the funds contained in the insurance policy. It can be the insured himself, it can also be the closest person appointed by the insured. This policyholder must have a blood relationship with the insured.

Payment Period

Payment Period is the period of the premium payment that has been agreed upon between the customer and the insurance company. The term of this premium payment can be made per month, per two months, per three months, per six months, even per year.

Some of the insurance terms above can be a bit of a guide for us prospective customers if we want to choose the right insurance for us. If there are other terms that are not understood, we should not hesitate to directly ask the insurance officer until we are clear.

Thus, we will avoid the risk that occurs due to misunderstandings. Moreover, the insurance that we register is insurance for business or business interests for business development to a higher level.

However, along with this, developing a business scale to a higher level is certainly not an easy task because there will be many obstacles to be overcome, including one of the issues of funding.

Even so, this problem does not mean that there is no solution because you can cooperate with Pintek as a solution for your business funding, especially businesses in the education sector.

Pink is a fintech company for education that has a mission to encourage the transformation of education in Indonesia through financial services.

Through the PO/Invoice Funding product, businesses in the education sector can get funding of up to billions of rupiah with a tenor of up to 24 months. In addition, the interest charged is also competitive starting from 0.9% to 2.5% depending on credit scoring.

To get funding at Pintek through PO/Invoice products, education vendors only need to guarantee an invoice or an ongoing bill. These funds can be used to fulfill school orders such as the procurement of laptops, books, and others.

To find out more information, you can visit the Pintek official website or have a discussion with the Pintek team via  TanyaPintek. You can also contact Pintek at 021-50884607.

You can also get interesting information about Pintek by visiting Pintek's Instagram page.