Protection And Fallacy perception gap insurance

Tutorials1927 - Although already have insurance, but not necessarily free from the problems we had because it was not sufficient protection. Moreover, they are not covered by insurance or do not have a reserve fund.

Estimate how much funds we imagine can protect families from the health risks, accidents causing permanent disability, and death? What if the deposit insurance or insufficient money?

Knowledge about the magnitude of the gap between estimated needs and the protection provided very useful in analyzing the condition of the community. Based on this knowledge we can bring awareness to the public about the basic needs of insurance.

AIA Financial Results of the study also concluded that estimates of the perceived risk of the average Indonesian families in major cities in total value reached USD 137 million. Protection needs at most absorbed to face death, amounting to Rp 53 million, and permanent disability due to accident Rp 36 million, Rp 35 million serious illnesses and ailments Rp 13 million.

But, with an average inflation rate of about 6.5 percent per year (the price of food, utility bills, home improvement, health and education costs are increasing every year) it is in fact, the total value of this risk would be much greater than we can imagine or calculate now. Therefore, the need for protection in real conditions definitely outweigh the findings of the survey results.

Estimated total value of risk is different if we sort out among respondents who have insurance to the uninsured. Those who have had an estimated value of insurance risk nearly reached USD 380 million, while the uninsured only Rp 86 million. While the reserve fund available to protect families from the disaster in the future on average only reached Rp 6 million. For those who have insurance, reserve fund of nearly US $ 25 million, but who do not have insurance savings averaged only Rp 2 million.

Those who have already had a relatively insurance awareness of how important it is to anticipate any unexpected incidents in the future. They have also been able to estimate how much the protection needs that should be available. Therefore, the estimated value of the risk and the allocation of funds to keep watch much higher.

On the other hand, those who do not have insurance often assume that insurance is just a load on the side of financial resources. Facts prove, nearly one out of three respondents who do not have insurance say no money to buy it. While, one in ten people simply resigned themselves to their fate.

See Also : myths about life insurance

For those who have insurance, the perception of the value of their protection needs are 4 times higher than those who did not have - it is strongly influenced by the differences in the level of awareness of risks in the future.

We can conclude that despite the reserve fund, it still does not meet the needs of everyday life, including paying bills, went to the hospital, or guarantee the future of their children. There are three possible causes: a low income, the financial needs are increasing, or incorrectly estimate the total value of the risk from the beginning, so the reserve fund is not enough.

The same survey found the gap between the need for protection with the funds available, either from insurance or reserve funds with an average of Rp 106 million or 77 percent of the estimated total value of the risk. Considering the average family income is less than Rp 5 million per month and a reserve fund of Rp 6 million, the families left behind have to seek financial assistance of approximately 20 times their earnings when disaster suddenly occur. This certainly reflects the difficulty of addressing the protection gap.

Only by protecting themselves and their families through insurance, the gap can be closed and is able to provide financial security for family members left behind.

Those who have insurance assess the future risk is higher, amounting to Rp 210 million. Meanwhile, those who do not have insurance assess the future risk of Rp 86 million. For those who have had insurance protection gap by 55 percent, while 98 percent are not. This shows just how risky their lives who do not have insurance. In addition to the gap width, their estimate of the value of risk is also too small compared to actual needs.

Figures national protection gap for those who already have insurance is $ 2.200 trillion. Protection gap for those who do not have insurance to Rp 4,100 trillion. Taking into account Indonesia's population of 237 million people and the average family size of four people, then the whole family total protection gaps Indonesia is estimated to reach Rp 6,280 trillion. This figure is close results of the 2010 survey of Swiss Re stated gap protection in Indonesia reached Rp 6.300 trillion or 711 billion US dollars (the exchange rate of 1 US dollar = Rp 8,900).

It is certain that families do not have insurance will decrease the quality standard of living if you suddenly experience a disaster, unless they commit a fundamental change.

Insurance expenditure needs and priorities should be higher on the list of expenditures. Indonesian society has a responsibility to the family and themselves, to determine priorities and ensure that family finances are balanced, include the level of adequate life insurance coverage.

See also : 6 Basic Principles In Insurance

The perception that insurance is expensive and not affordable is not true, and this must be rectified. For example, a teacher in an educational institution, 38 years old, married, do not smoke, have two children. He can begin to protect themselves from the risk of accidental loss, with only paying a premium whose value is no more than the price of a bowl of instant noodles every month.

Insurance should not be seen as a burden on the financial resources if we are able to plan your finances well. Insurance is not a burden but an asset; This is a protection for us and family who can be relied upon, especially if a disaster occurs. The word "insurance" and "affordable" should go hand in hand. Therefore, accurate and complete information is important emphasized by all players in the insurance industry.

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