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Insurance is a term used to refer to an action, system, or business where financial protection (or financial compensation) for the soul, property, health and so forth get a replacement from unpredictable events that can occur such as death, loss , damage or illness, which involves paying premiums regularly within a certain period of time instead of a policy that guarantees such protection.

The term “insured” usually refers to everything that gets protection.

Basic Insurance Principles

In the insurance world there are 6 basic principles that must be met, namely:

• Insurable interest, namely the right to insure, arising from a financial relationship, between the insured and the insured and legally recognized.

• Utmost good faith, which is an action to disclose accurately and completely, all material (material fact) facts about something that will be insured whether requested or not. The meaning is: the insurer must honestly explain clearly everything about the extent of the terms / conditions of insurance and the insured must also provide clear and correct information on the object or interest insured.

• Proximate cause, which is an active, efficient cause that causes a chain of events that results in an effect without the intervention of one who starts and actively from new and independent sources.

• Indemnity, which is a mechanism by which the insurer provides financial compensation in an effort to place the insured in the financial position he had just before the loss occurred (KUHD article 252, 253 and affirmed in article 278).

• Subrogation, namely the transfer of claim rights from the insured to the insurer after the claim is paid.

• Contribution, which is the right of the guarantor to invite other guarantor who both bear, but do not have the same obligation to the insured to participate in providing indemnity.

Type of Insurance

1. Life Insurance

This type of insurance is known to provide financial benefits to the insured for his death. The payment system for this type of life insurance varies. There are insurance companies that provide payment after death and others can allow the insured to claim funds before his death.

Life insurance can be purchased for self-interest and on behalf of the insured alone or purchased for the benefit of a third person. Even life insurance is also known to be bought in other people’s lives. As an illustration, suppose a husband can buy life insurance that will provide benefits to him after the wife’s death. Parents can also insure themselves against the child’s death.

2. Health Insurance

This type of insurance is also quite well known by the people of Indonesia. Health insurance is an insurance product that handles the health problems of the insured because of an illness and covers the cost of the treatment process. Generally, the cause of the insured’s illness which can be borne by the insurance company is injury, disability, illness, until death due to accident.

Health insurance is also known to be bought for the benefit of the insured or the interests of a third person. Private health insurance companies such as Prudential, Allianz, AIA, Cigna, and Manulife are among the big names that provide a variety of insurance products to suit the needs of the Indonesian people and are widespread throughout the world.

3. Vehicle Insurance

The most popular vehicle insurance in Indonesia is a type of car insurance that focuses on injury coverage to other people or against damage to other people’s vehicles caused by the insured. This insurance can also pay for the loss or damage to the insured motor vehicle.

Vehicle insurance is one of the general insurance products. This type of insurance had become a boom when the riots broke out in May 1998 because the incident made people’s interest in protection ownership for private vehicles increase dramatically.

The financial site has partnered with well-known insurance companies in Indonesia so you as a customer can compare the best car insurance products with low rates.

4. Education insurance

Dizziness with children’s education costs? This type of insurance will help you overcome. Education insurance is the best alternative and a solution to ensure a better life, especially in children’s education assets. The cost of the premium that must be paid by the insured to the insurance company varies according to the level of education to be obtained later. Understanding the importance of using education insurance for children is now a matter of concern for parents. The high cost of education and other conditions that exacerbate the economy such as the weakening of our currency against the US dollar affect the cost of education for children later. Realizing that this clearly will burden parents, it is not uncommon for parents now to choose to have education insurance. So, education insurance can be classified as the types of priority insurance too, right? You will certainly be helped in taking care of the child’s future.

5. Travel insurance

Maybe for those of you who often travel or travel are familiar with this type of insurance. The various types of insurance also create a variety of protection for travelers. Overall, the function of travel insurance is not much different from the ordinary insurance function as a form of protection for customers with a short period of time that is for the premium buyer to travel until returning home. Benefits and protection that will be gained from having travel insurance include obtaining protection and coverage for accidents that affect premium buyers, personal accident benefits, dependents for emergency medical expenses, repatriation of bodies, medical evacuation, to protection of luggage that has a risk of being lost. or damaged.

6. Business insurance

For those of you who have a business field, this type of insurance is important to consider. In addition to the types of insurance that involve individual protection, insurance that protects businesses is also needed. Business insurance is a protection service against damage, loss and loss in a large amount that may occur in one’s business. This insurance provides compensation for damage caused by fire, explosion, earthquake, lightning, flood, hurricane, rain, collision, until riots. Insurance companies usually offer a variety of benefits from business insurance such as protection of employees as business assets, investment and business protection, comprehensive life insurance for all employees, to health insurance protection packages for employees.

Advantages of Insurance Companies

Insurance companies also benefit from investment. This is obtained from the investment premium received until they have to pay the claim. This money is called “float”
Insurers can get profit or loss from float price changes and also interest rates or dividends in float. In the United States, property losses and deaths recorded by insurance companies were US $ 142.3 billion in the five years ended 2003. But total profits in the same period were US $ 68.4 billion, as a result of the float.

Insurance Refusal

Some people consider insurance to be a form of betting that applies during the policy period. The insurance company bet that the buyer’s property will not be lost when the buyer pays the money. The difference in fees paid to insurance companies against the amount they can receive if an accident occurs is almost the same as if someone bet on horse racing (for example, 10 to 1). For this reason, some religious groups including the Amish avoid insurance and depend on the support received by their community when disaster occurs. In communities where close and supportive relationships where people can help each other to rebuild lost property, this plan can work. Most people cannot effectively support the system as above and this system will not work for big risks.

Why is health insurance so complicated, while car insurance and life insurance are so simple? Can health insurance be more like, well, insurance? Lanhee …

Post Author: admin

30 Replies to “Why Is Health Insurance so Complicated? | My Insurances Info”

  1. I work in the insurance industry and this guy is spot on. We don't call it a house or a car. We call it a risk. In health insurance you are the risk. Believe me, you don't want to be the risk. It's a great concept for mitigating property damage. But it's a disgusting idea that your health is looked at the same way that we look at your property.

  2. I agree with almost all you've said. But I'm a Type I diabetic that is in better health than 99% of people my age and I have struggled getting insurance. I do Crossfit, have never smoked, don't drink, and have perfect health otherwise. But unless forced, insurance companies wouldn't touch me with a 10 foot pole. And my prescriptions (without good insurance) would break me.

  3. I got one thing that really makes me paranoid with my company. I picked up health insurance and dental 2 months ago and my company sold out to another. Do my payments on my health insurance continue over onto the new company or did I lose that three months worth of payments. Question is do I got to start over. I know everybody's getting reviews but no raises because of the new company transfer. Even if you signed a contract when you are hired on.

  4. build more clinics, don't make healthcare insurance mandatory, open your healthcare clinic services across state lines. This will create competition, offer the best quality of service and bring all costs down all because of one thing, because businesses depend on their customers.

  5. the less government is involved the better…i work in public housing at a state level and you would not believe the waste and nonsense that goes on..can only imagine federal..

  6. Insurance, whether it be healthcare, life or automobile is only supposed to be for catastrophic losses, the things which cannot be predicted. Healthcare should not cover preventative care because it’s your job to take care of you. It’s your job to keep yourself healthy. You know you should see a doctor once a year at least. If insurance didn’t cover preventative care, those checkups, then doctors wouldn’t charge so much for them because they couldn’t charge so much for them. Because they know the average citizen cannot afford it. But they can ask as much as they want from insurance companies. And it’s wrong to make everyone pay for the same things. Why should a single man with no prospects pay for contraception or maternity care?

  7. Some of my coworkers got rid of they're medical insurance through our employer and instead the close to $400 a month they were charged goes to savings in case of emergencies premiums are high and many times our insurance doesn't cover specific things when we visit the doctor I mean in all seriousness its not like everyday life is like that movie final destination where freak accidents happen consistently I think its only good if you have a family member with a serious illness or a terminal illness at the end of the day medical costs are through the roof in this country,

  8. Thank god someone gets it. How could any rational person think that by Obamacare requiring insurance companies to cover MORE benefits that it would make insurance cost less?? And the preexisting conditions? Many, many, many people have those, but the ones who are not insurable are a tiny, tiny percent. It's pure baloney to scrap the whole system because of that.

  9. Health care in America is a multi-faceted problem, and it seems like every organization only addresses a single side of the issue.

    Health insurance should be a la carte, and purchasable across state lines. I should be able to go to a health insurance company's website and pick the things I want to cover, and what I'm willing to pay out of pocket.

    We should teach our children the importance of multiple types of savings. Not just "saving for that car I want" but "investing in my retirement with an IRA or 401k," and "opening an HSA to cover unexpected health care costs."

    We should encourage the construction and staffing of more hospitals and clinics across the country. More hospitals, more medical schools, more nurse certification programs. ACA increased the demand for care without increasing the supply, and that was part of the increased cost.

  10. Stubborn people copy already the Canadian healthcare system that works for all they figured it out better, accept it already and carry on with your lives before any more people die while you make something more complicated than it suppose to be, watch movie called "John Q" and cry smart A reaseach fellows !!!

  11. What I like about conservative PSAs is that they always provide potential solutions. Liberals PSAs just tell us all the reasons life sucks, why it’ll only get worse, and there’s nothing you can do. Unlike those videos Prager U gives me hope.

  12. About 62% of all US bankruptcies were related to medical expenses in 2007, and 78% of these bankruptcies were filed by people who already had medical insurance. Lets say you get a cheaper plan to save money but then have a condition not covered in your cheaper plan. Now what? That is one huge difference when comparing to the other insurances. Medicine is far more complex then making a home insurance claim.
    Source: David U. Himmelstein, MD, Deborah Thorne, PhD, Elizabeth Warren, JD, and Steffie Woolhandler, MD, MPH, "Medical Bankruptcy in the United States, 2007: Results of a National Study," American Journal of Medicine, Aug. 2009

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