I used to be someone who immediately got a headache every time I heard the word “insurance.” It felt like I was forced to understand an alien language with all the technical terms that made my brain lag. Policy, premium, claim, coverage benefits… ugh, my head was immediately full! But after experiencing several incidents that made me regret not having insurance, I finally started to seriously learn. And you know what? It turns out it’s not that complicated if you know the right way to understand it. So, if you still feel that insurance is complicated, relax. I’ll explain it in a simple way so you don’t have to get a headache anymore!
1. Think of Insurance as an Umbrella in the Rainy Season
Try to imagine that you are going for a walk, and suddenly it rains heavily. If you have brought an umbrella from home, it’s safe! But if not, get ready to get wet. Well, insurance is like an umbrella. You won’t always need it, but when something bad happens—for example, illness or an accident—you will be very grateful to have protection.
Many people think, “Oh, I’m just fine, why pay for insurance every month?” That’s like saying, “It’s sunny now, no need to bring an umbrella.” However, the weather can change suddenly, right?
2. Understand the Basic Terms, Don’t Panic
One of the reasons why many people are afraid of insurance is because the terms sound very technical. But actually, once you understand the basics, everything makes more sense. Here are some terms you need to understand:
- Premium = Money you pay to an insurance company every month/year to stay registered under their protection.
- Policy = A contract or agreement that explains your rights and obligations as an insurance holder.
- Coverage benefit = The amount of money you or your family will receive if something happens that is covered by insurance.
- Claim = The process of submitting a request for payment of insurance benefits if you experience a covered incident.
Easy, right? Think of it like a streaming service subscription—you pay monthly (premium), there are terms and conditions you have to read (policy), and when a new movie comes out (claim), you get to enjoy the benefits.
3. Choose Insurance That Suits Your Needs, Not Just Following the Trend
I used to think all insurance was the same. It turns out, different needs, different types of insurance. If you choose carelessly or just follow your friends, you could end up paying premiums every month but not getting maximum benefits. Here are some of the most common types of insurance:
Choose one that suits your financial condition and needs. For example, if you are still young and do not have family dependents, health insurance may be a higher priority than life insurance.
4. Don’t Fall for Myths!
There are many myths about insurance that make people lazy to register. In fact, most of them are just misunderstandings. Here are some that I often hear:
- Health Insurance – For hospital expenses, hospitalization, surgery, and other medical treatments.
- Life Insurance – Protects your family if something happens to you (such as death or permanent disability).
- Vehicle Insurance – Covers car/motorcycle repair costs in the event of an accident.
- Education Insurance – Helps you save for your child’s future school fees.
5. Start small, it doesn’t have to be big right away
If you are still in doubt, you don’t need to immediately buy insurance with a large premium. Just start from something small first. For example, health insurance with a premium that fits your pocket. Once you feel comfortable and understand how it works, then consider adding other types of protection. I myself initially only took health insurance with a cheap premium. But after experiencing an incident where I had to be hospitalized and the costs were exorbitant, I realized the importance of having broader protection. From there, I started upgrading the policy to be safer.
6. Don’t Forget to Check the Insurance Company’s Reputation
Not all insurance companies have a good track record. Some are often accused of being complicated when making claims, while others have poor customer service. Therefore, before deciding to buy, find out their reputation first. Check online reviews, ask friends or family for their experiences, and make sure the company has an official permit from the Financial Services Authority. Don’t make the wrong choice and regret it later.
Conclusion: Insurance is not a burden, but an investment in protection
I used to think insurance was just a waste of money. But after understanding how it works, I realized it’s actually an investment to protect yourself and your family. It’s better to spend a little money every month than suddenly have to pay tens of millions in an emergency. So, if you still feel that insurance is complicated, try starting slowly. Understand the basics, choose what suits your needs, and think of this as a step to secure your future. Trust me, you’ll be grateful that you started early!