Is there insurance with cheap premiums, buy it or skip it? My Money – 1 day ago

Jakarta, CNBC Indonesia – Maybe you have been offered insurance with a cheap premium, and you are thinking about buying it with the aim of creating long-term financial protection. But is this the right thing to do?

Insurance with cheap premiums comes in various types. Call it things like health, soul, accidents, and others. This insurance is also often referred to as micro insurance.

The process of applying for micro insurance is very practical, it can even be done online easily. Just register and pay the premium, then you can immediately enjoy protection. However, before you are tempted to buy this insurance product, there are several things you need to consider.

Microinsurance for lower middle class people?

Microinsurance is actually aimed specifically at lower middle class people, especially those with low incomes. Therefore, the premiums offered are relatively more affordable. The main purpose of microinsurance itself is actually to provide education about the importance of having insurance protection.

However, keep in mind that microinsurance does not always provide a complete policy, and the types of compensation provided can be limited. The premium and coverage amounts are predetermined, and tend to be the same for each participant.

Even though it has benefits as a first step in risk management, the protection provided by microinsurance is often not optimal. Because with cheap premiums, the coverage value provided is not sufficient for actual needs.

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