11 Benefits of Corporate Insurance Law for Employees

Insurance is a way to manage risk which means buying protection against unexpected financial losses. The insurance company will pay for all losses that occur to you when something unexpected happens.

By law, insurance is a contract in which one party pays a premium and the other promises to reimburse the former for a certain type of loss such as illness, property damage or death.

Insurance companies in Indonesia, for example PT. Askes (now BPJS), Allianz, AXA Mandiri, and Prudential. The Indonesian government itself requires all people to have insurance, at least as members of the BPJS. The benefits of corporate insurance law for employees are as follows.

1. Financial Protection from Unexpected Burden

One of the benefits of insurance law is to provide convenience when facing a medical emergency, or worse, the death of the breadwinner of the family. At times like this, life insurance will help with various costs that you may have to spend.

In the event of an accident, you may have to go through a series of treatments that are not cheap. If you have insurance, then you can make a claim to get medical expense protection.

2. Family Fund when Not Working

Humans can only plan for the future, but unexpected things can happen at any time, for example an accident that can take a life. Plans such as children's education funds may be disrupted.

Life insurance secures your family's future and frees them from financial worries. It takes care of expenses such as a mortgage or college education, which you can no longer support.

3. Reserve Fund

If you are an employee, whether in a BUMN/BUMS/BUMD company, you may already be familiar with BPJS Employment. Employment insurance is usually paid for by workers and companies.

You can withdraw this insurance when you decide to stop working from a company that you can use before getting a new job. Whatever the reason for your resignation, this fund is very likely to be a reserve fund.

4. Sense of Security

The Indonesian government currently requires the public to become members of BPJS Kesehatan with the product of the Healthy Indonesia Card (KIS). This KIS program has the nature of gotong royong, which means that you pay a premium to be used together.

With this program, you don't need to hesitate to take treatment/examination to the surrounding health facilities. The costs that should be incurred can be borne even if the amount of the bill exceeds the premium you paid.

5. Business Stability

Not only applies to individuals, the benefits of insurance law are also found in a business. If an individual has life insurance, a business can also have insurance for its business risks.

Profit and loss are the main components that must exist in a business. When the company suffers a loss, my insurance helps cover the cost of the loss so the business will still run and cover the loss with a new profit.

6. Property Improvement Fund

Properties such as houses, apartments, rentals, hotels, and others are assets that you must protect. One way to protect your property is to have property insurance that can be used to repair the property itself.

Property insurance will provide protection against theft, damage from hazards such as fire and flood, and financial liability that may result from a visitor or guest being accidentally injured on your property.

7. Reduce Stress During Tough Times

None of us can see the future or determine future events. Any unforeseen tragedy can be physically, mentally, and financially stressful. With insurance, any financial stress will be overcome, and you can focus on recovery.

So, if you have insurance to cover the consequences of a tragedy such as illness, injury or permanent disability, even death. You save yourself and your family from tension or stress.

8. Peace of Mind

Having insurance offers financial security as well as peace of mind. No amount of money can replace your peace of mind. So when you have insurance, you know that you are protected from the unexpected events in life.

For example, vehicle insurance, when you have an accident that makes the vehicle damaged, you can make a claim for the vehicle insurance. Vehicle insurance like this is already required in many countries.

9. Ease of Spending

When you have to undergo treatment or property repairs, you may end up paying a lot of money at one time if you don't have insurance. This would definitely be very burdensome if it happened.

The insurance that you will pay is likened to an 'installment'. You save little by little for something big in the future. This helps you don't mind spending money when the unexpected happens.

10. Financial Management

Financial problems often occur not because of a lack of income sources, but because of improper financial management. Insurance can be said as a 'wallet' that has a partition to separate funds according to their interests.

You can start choosing insurance products that are suitable for your future needs. That way, you are 'forced' to save for these interests which you may not be able to do with conventional savings.

11. Benefits of Life

Insurance is often associated with unpleasant events, be it resignation from work to work accidents. However, you can also enjoy insurance under various conditions.

The benefits you can get as intended, for example, get cash back or various tax breaks when purchasing an insurance policy. You can also get a return on investment.