It's not
just a raise in salary that should be a major concern as an employee. An
increase in the amount of income without protection is certainly meaningless.

Be awarethat medical costs will continue to increase over time. Based on Willis TowersWatson survey data, in 2020, the increase in health costs in Indonesia reached11% per year.

The healthof employees is certainly something that should not go unnoticed by theemployer because employee productivity will greatly affect the company'sperformance.

However, ifthe company decides to cover the medical expenses of sick employees, it islikely that this will increase operating expenses which in turn will reduceprofits.

One solutionto mitigate this risk is of course by providing insurance for employees, butbefore deciding to provide this facility, please be aware of the following:

Whatis a Group Insurance Policy?

Groupinsurance policy is an insurance policy issued by an organization that buysprotection for a particular group or groups. In a group policy, one contractwill cover more than one individual or family.

The employeeis not the party that makes and is entitled to receive a copy of the mastercontract, but the company has that position. However, employees will be givenan “insurance certificate” from the policy holder, which in this case is thecompany.

Generally,group insurance becomes an employee welfare program initiated by the company.The group insurance program is actually not only limited to health insurance,but there are also life and pension programs.

Theprocess of identification and selection of employee insurance risks differsfrom that of individuals

The processof identifying and selecting risks or underwriting group insurance is differentfrom that of individuals. As is known in this process, there is a review of thefactors that affect the health risks of the Insured candidates (employees).

For example,in employee health insurance, the insurance company will assess the risk of agroup of employees.

Severalfactors that can influence the estimated morbidity rate of a group of employeesinclude:

• The nature of the industry in which the insured candidateswork Age distribution in the group, the older the age, the higher the morbidityrate
• The distribution of men and women in the employee group, thisis because even at the same age, the morbidity rate of women tends to be higherthan that of men.
  
  

EmployeeInsurance Will Become a Tandem BPJS Health

TheGovernment through Government Regulation (PP) No. 86/2013 concerning Proceduresfor Imposing Administrative Sanctions to Employers Other Than State Officialsand Everyone, Apart from Employers, Workers, and Contribution AssistanceRecipients in the Implementation of Social Security, has determined that BPJSHealth can be used to pay for medical expenses that cannot be covered by healthinsurance from the company.

Almost alldiseases will be covered by BPJS, however, the treatment process using BPJS canonly be done at health facilities (faskes) where the employee's name isregistered. If they have to go to a specialist, the employee must go to thehealth facility and ask for a referral from a general practitioner first.

With healthinsurance, employees will be helped in terms of flexibility in treatment. Thereason is, insurance can be used at any time without a referral from a certainhealth facility, as long as the clinic or hospital you are aiming for hascollaborated with an insurance company.

It isbetter if employee insurance is equipped with disability and life incomereplacement benefits

The morecomplete the benefits of employee insurance, it shows that the company's levelof concern for employees is quite high.

In additionto reimbursement for medical expenses such as hospitalization, outpatient care,and medicines, employers can also consider employee health insurance facilitiesin the form of disability income and life protection.

Disabilityincome insurance can be defined as a health insurance program that providesincome replacement for the insured who is no longer able to work, due to anillness or accident. The higher the risk of work owned by employees, it isbetter for the company to consider providing this insurance.

With theexplanation above, hopefully you will understand more about the insuranceprovided by the company.

In essence,the need for protection is no less important than a salary increase. Due to thehigh cost of medical treatment, it could be something that interferes withfinancial conditions even though they already have a sufficient salary.

The occurrence of the COVID-19
pandemic, which has claimed many lives and caused a slump for the global
economy, has more or less encouraged increased awareness of the importance of
insurance. Since the pandemic hit, the awareness of the Indonesian people to
have insurance has increased.

The Manulife Asia Care survey lastNovember 2020 showed that in the Asian region there was an increasing interestin buying new insurance products, from 62% to 71%, since the last survey in May2020. In three dollars, data from the Financial Services Authority (OJK) asquoted by Investors Daily in July 2021 also showed that Life Insurance Premiumsthroughout semester I-2021 grew 18.35% compared to the same period in 2020.

Despite this growth, public awarenessof having insurance still needs to be encouraged. This is because the level ofownership or penetration of insurance is still low in the country. According toOJK, as quoted by Bisnis Indonesia, the insurance penetration rate in June 2021only reached 3.11%.

Many people may already understand theimportance of having insurance to manage their financial risks. However, manyare still doubtful or choose to procrastinate having it. In fact, the longer wedelay having insurance, it's the same as letting the risk happen to financesand the future.

Some Risks ofLoss Delaying Insurance

Many cases occur when someone justthinks about buying insurance when the thing they fear has happened in front oftheir eyes. If this is the case, of course, it is difficult to find insurancethat is willing to bear the risk of this loss.

So, in order to be more confident indeciding to have insurance, let's look at 4 losses that we will experience ifwe delay having insurance:

1. Premium PricesGet Higher With Age

To be able to get insuranceprotection, we are required to pay a premium to the insurance company that actsas the risk taker. The premium amount is determined based on the risk analysisof the Insured. Several things that become risk assessment variables includethe age of the Insured and health conditions. The older the age of the insured,generally the insurance premiums will be higher because the risk is consideredto be greater than the young insured. Likewise regarding health conditions thatcan be seen based on medical records, the Insured's lifestyle whether smokingor not, and so on.

The age variable also determines thepremiums in long-term insurance policies such as life insurance. For example,we buy life insurance at the age of 29 years with a sum insured of IDR 1.1billion and a protection period of 20 years. So for the next 20 years, we willbe charged a premium per year, let's say it's around Rp3.08 million. On theother hand, if we apply for life insurance at the age of 35 years with a similarcoverage value and protection period, we can be sure that the premium chargedwill also be higher.

One of the term life insuranceproducts that we can consider is the Term Saving Protection from Manulife. Thisproduct provides a death benefit in the form of 100% UP which is given if theInsured dies during the coverage period. In addition, Term Saving Protectionalso provides benefits in the form of 200% UP if the Insured dies due to anaccident. There is also a final contract benefit in the form of a 100% returnof premiums if the insured lives until the end of the coverage period.

2. UnmanagedFinances

Insurance is actually a mechanism totransfer or transfer risk from us to the insurance company. As a risk transferservice, the insurance company gets premium income paid by the policy owner. Byhaving insurance, we limit the risk of loss to a certain number that is morecertain. An easy example, we buy health insurance that has a yearly limit or amaximum annual benefit limit of Rp. 200 million.

To get the insurance benefits, we haveto pay a premium of Rp. 1 million per month. Thus, we limit the risk ofspending due to illness to a maximum of Rp. 12 million for a year to get abenefit of Rp. 200 million. So, if one day we need maintenance costs that costup to Rp. 100 million, the insurance will pay for it.

The opposite will apply if we do nothave insurance at all. With the same case, which is an illness that costs up toRp. 100 million, then we have to pay 100% of the expenses ourselves. So, let'simmediately have insurance so that we can manage the risk of losses that caninterfere with financial health.

3. Opening theRisk of Stuck in Expensive Debt

Insurance is very useful to help usanticipate events that require large funds. Illness events that require thebest medical care, accidents that eliminate the ability to work, to deathevents that stop the source of income for the bereaved family, and so on. If wehave insurance, these risks are transferred to the insurance company (or sharedif the context is sharia insurance products). By transferring that risk, we donot bear it alone. There are cases of illness, like the example above, we don'tneed to pay up to Rp. 100 million for treatment costs from our own pocketbecause insurance is the one who covers it.

What happens if you don't haveinsurance? So, what happens when a person's finances are unable to bear thecosts themselves? There are many cases like this that end up dragging someoneinto a costly debt trap. When personal finances can't afford it, people oftenturn to looking for debt so they can still get the care they need. The problemis, in urgent conditions such as illness, the need for funds is also demandedto be quickly available. Finally, many are forced to borrow from expensive loansbecause they can be obtained quickly.

If that's the case, personal financialconditions can get even worse. Taking expensive debts if not calculatedcarefully, risks dragging our finances into complicated problems and evenbankruptcy.

4. Not OptimalInvestment Done

Investing is one of the best ways toincrease asset value and help achieve certain financial goals. Investments canprovide benefits that help the accumulation of wealth more quickly. Along withthat, investment also has a risk that is proportional to the opportunity forprofit. When we invest without having any insurance protection, it becomes manytimes more risky.

The picture is like this. We routinelyinvest in mutual funds or stocks for a financial purpose, amounting to IDR 2million per month. Well, one day there was an illness where we needed a largeamount of treatment. Because we don't have health insurance, our income andsavings are depleted to cover the hospital costs. As a result, the routineinvestment fund allocation of Rp 2 million per month is also sucked up byhospital costs. As a result, financial goals are threatened with failurebecause investment capital does not exist.

The opposite happens if there isinsurance, when there is an incident of illness, the insurance will cover thetreatment costs so that we can still do the allocation of routine investmentfunds of Rp. 2 million. That way, financial goals do not need to be disturbedby unexpected expenses because there is insurance that covers them.

By understanding the four risks ofdelaying insurance, it seems that there is no longer any reason for us toignore them. Come on, immediately complete your protection needs by having theright insurance!

Health is important for every human being, so itsprotection is also very important. The benefits of health insurance have alsobeen felt by many people, especially in minimizing the financial impact due tothe risk of disease in the future.

Health Insurance What is needed by society in general is somethingthat can give them peace of mind and complete the comfort of life at an affordablecost.

Therefore, people are starting to realize theimportance of having personal health insurance. The main reason, personalhealth insurance can cover medical costs quickly in the event of a medicalemergency.

Notto mention the fact that health costs in Indonesia are increasing year by year. Survey 2020Global Medical Trends Survey Reportreleased by the firmWillis Tower Watson stated, gross medical inflation or health costs inIndonesia in 2019 rose almost 10% from the previous year. Meanwhile, this year,health costs are predicted to skyrocket again up to 11%. This increase isallegedly going to be higher than the average cost of healthcare in AsiaPacific countries which touched the level of 7%.

Seeingthe trend of increasing health costs, having personal insurance is a wisedecision. Why?

The Importance ofHaving Personal Health Insurance

1. Access to ManyHospitals

Because it has been present in Indonesia first,private insurance companies have worked closely with partner hospitals that arecompetent and ready to serve prospective patients. With a dispersed and variednetwork of hospitals, you can choose the hospital you want.

For example, we can search for the location of ahospital that is close to where we live or find a hospital where a regulardoctor practices.

2. Easier Process

With a large network of hospitals, health insuranceoffers procedural services that are easier for policyholders while in hospital.For example, some types of disease do not require a referral system thatrequires the patient to bring a letter of recommendation from a specialist.This of course speeds up the treatment process.

This means that you can visit health facilities atany time, both clinics and hospitals as long as they cooperate with yourinsurance. We can even choose the doctor we want. This is what underlies manypeople why they choose personal health insurance as health protection.

3. Save Time

Long queues are something to avoid when we are sick.But what can we do, oftentimes, we have to be willing to wait for hours. Thiscan be a hassle if you come to accompany an elderly person or small child.

Moreover, the quota for inpatients is limited. Suchconditions will require us to go back and forth to the hospital to check theavailability of inpatient rooms.

By having personal health insurance, we can have ashorter flow so that it is handled quickly, and saves time and effort.

4. Enjoy CashlessFacilities

With health protection, we don't need to carry cashwith us to the hospital, especially if we suddenly have to enter the EmergencyRoom (IGD). If your health insurance has a cashless or non-cash feature, youonly need to show your insurance card at the hospital counter. After that, thecost will be guaranteed in advance by the insurance company to the hospital.

Oneof the insurance that has features CashlessisManulife Indonesia. With this feature, Manulife will help cover patient costsif there is a risk of illness, so you can stay financially protected.

5. Cash Compensation

Anotherbenefit offered by private insurance is the cash compensation provided whilethe patient is hospitalized. This compensation is beneficial for the patient'sfamily who waits at the hospital every day, as a substitute for transportationcosts or family hospitalization costs.

The five reasons above prove that health insuranceprovides more convenience. With private insurance, you don't have to wait longto get service, you can choose a hospital and specialist doctor, to choose amore attractive treatment room.

Therefore,you need to be observant in choosing insurance that provides the benefitsdescribed above. Well, one that should be an option is MiUltimate HealthCare.This is insurance products purehealth developed by Manulife Indonesia with various advantages and benefits forcustomers.

Some of the advantages include inpatient facilitieswith 1 bed room, reimbursement of hospital fees according to the bill, as wellas a room fee benefit of 3 times the plan chosen if you are treated abroad.This applies to all Manulife partner hospitals worldwide, with the exception ofthe United States. This is very useful for those of you who often travel abroador even stay for some time in another country.

Sowith all the benefits that have been described, why wait to have healthinsurance? Remember, your health is priority. Agree?