Myths and Facts About Life Insurance You Should Know

Life insurance is an important safeguard for well-being. Unfortunately, there is a lot of confusing information about this type of insurance, so many people hesitate to use it. To help you feel confident about getting it, first learn the myths and facts about life insurance.

Life insurance is a type of insurance designed to protect against financial losses caused by the risk of death. Although no one knows when their time will come, the difficulties that death brings can be anticipated early so that they do not become a hardship for the family left behind.

Myths and Facts About Life Insurance

Death brings not only deep grief to a family but can also create a financial burden. This is especially true if the person who has passed away was the main breadwinner, as the family may then face lasting hardship.

For this reason, it is very important for you to understand accurate and reliable information about life insurance. The myths and facts you should understand about life insurance are as follows:

1. Having Life Insurance Means Expecting Misfortune

Have you ever heard someone say that having life insurance is the same as wishing for misfortune? It should be made clear that people get life insurance not because they hope for misfortune to happen.

In fact, it is a step of preparation so that no serious consequences arise after you pass away. It is true that no one knows when death will come, but you can still prepare for the hardships that may follow.

It can be said that life insurance is a financial plan that is very important for everyone to have, especially for those who work in high-risk environments.

2. Insurance Is Only for Protecting Life

Is it true that life insurance can only be used to protect a life in the event of death? In fact, life insurance is not only useful when death occurs.

Although its main benefit is paid upon death, life insurance can also cover medical costs related to a death, up to funeral expenses, depending on the type of protection and insurance benefits you choose.

2. Insurance Is Only for Older People

The myth is that life insurance is only meant for older people or those who are already working, so young people do not need this type of insurance. The fact is that the risks of illness, accidents, or death can happen to anyone, including young people who are single and healthy.

Moreover, not a few young people live a consumptive lifestyle and carry debts such as pay-later plans or credit cards. By having life insurance, the family left behind can be spared the obligation to pay off these debts.

3. Housewives Do Not Need Insurance

This myth is the one most often considered in social circles. But is it true that housewives do not need insurance? In fact, housewives are ordinary human beings who can fall ill or have an accident at any time.

Even if a husband is still covering medical costs, we cannot predict the future.

What if, at the time of death, the husband does not have funds set aside for hospital and funeral costs? That is why it is so important to prepare for this worst-case scenario.

3. Insurance Premiums Are Expensive

The next myth and fact about life insurance is that premiums are expensive and cannot be afforded by everyone. In fact, life insurance offers a range of premium amounts that can be adjusted to each person's needs and ability to pay.

You can pay premiums monthly, every six months, or yearly. Anyone, regardless of educational or work background, can have life insurance with a payment method that suits their financial situation.

4. Making an Insurance Claim Is Complicated

The myth is that the life insurance claim process is not easy and is often made difficult by the insurance provider. In fact, there are many insurance companies in Indonesia with easy claim processes.
Some insurance companies even apply simple procedures, where the claimant does not need to submit physical documents because online access is available.

5. All Insurance Products Are the Same

Another myth and fact about life insurance in society is that all insurance products are the same. As is well known, there are many insurance products offered by providers today, ranging from vehicle insurance, education insurance, work insurance, and others.

So, are these different types of insurance no different from life insurance? In fact, life insurance products have their own benefits and advantages compared to other insurance products.
As briefly mentioned above, life insurance products are available with a range of costs and premiums, so they can be chosen according to the needs of each user.

6. You Do Not Need to Buy Insurance If Your Company Provides Benefits

Does someone not need life insurance if they already receive benefits from their company? In fact, no one can predict whether they will keep working at a company and continue to receive those benefits.

If the company where you work provides a health allowance for one year, for example equal to one month's salary, that allowance is an incentive for you. Typically, companies do not provide insurance coverage for employees whose length of service is under one year.

In addition, consider the possibility that you may develop a chronic illness that requires costs far greater than the protection provided by the company. That is why you need to have life insurance personally to protect against financial difficulties in the future.

7. You Do Not Need Insurance Because You Have BPJS

BPJS is insurance that is indeed mandatory, but having private insurance can give you and your family a more reassuring level of protection. Sometimes, claiming benefits from BPJS can take a long time because you may have to wait in line.

To obtain a referral, BPJS participants sometimes have to go back and forth several times. Imagine if your elderly parents had to queue for a long time. That would certainly become a source of worry, would it not?

Basically, BPJS and insurance work together in a form known as coordination of benefits. So, when you first enter a hospital, go through the BPJS channel. Then, use your insurance product as an addition.

In this way, you can benefit from the BPJS price while enjoying the facilities of private insurance. You can upgrade your inpatient room class, while other costs remain covered by BPJS.
If you have already received treatment or purchased medicines that are not covered by BPJS, you can request reimbursement through the insurance system.

From the explanation above, it can be seen that the myths and facts about life insurance that remain confusing in society have been answered in detail. Now, you do not need to hesitate if you want to use a life insurance product with a premium that suits your needs.