Insurance Quotes Comparison – Insurance has a main function in providing protection and coverage to customers. Unfortunately, this time many are wrong in choosing an insurance product, which ends in futility. Now to avoid this, it is very important to do an insurance quotes comparison both regarding the premium and the sum insured.
More details about this, you can listen to below.
Insurance Quotes Comparison – What is an Insurance Calculator?
The calculator itself has the main function in performing calculations. Likewise with insurance calculators, which are generally used in calculating insurance premiums. As an insurance user, of course, you need some considerations before deciding to use the insurance, including getting the best premium rate.
Therefore, insurance calculators play a certain important role. Insurance calculators can make us assess an insurance benefit, whether it is comparable to the premiums we pay or not.
Doing insurance calculations can also adjust to your financial ability to get the right premium. That’s why it’s important to do some calculations before buying.
Read More : What Is Insurance On The Spot
Insurance Quotes Comparison – How to Calculator Insurance Quotes Comparison
Before making the premium amount, of course you need to know how to calculate the sum insured given to the policyholder. In calculating the UP—the Sum Insured, you can do it in two methods, namely
Expense Based Calculation
- The first way you can calculate UP based on expenses, is based on at least 3 factors, namely the following factors:
- The first factor is the current monthly expenditure, both primary and secondary expenditures.
- Coverage to cover as long as UP can meet needs or expenses within a certain period of time
- The last factor is annual inflation, usually reaching 3% to 4% per year.
So, if a customer’s expenses in that month are 10 million and it is hoped that the sum assured can cover the expenses of the family left behind for 5 years.
So, if it is accumulated with annual inflation, the customer needs insurance coverage whose value is above that number, for example, the sum insured is not less than Rp. 637 million.
Insurance Quotes Comparison – Calculation Based on Income
Like the previous calculation, in doing calculations based on income it also includes the consideration of the same 3 factors, which of which are as follows:
- The customer’s income in that month, both primary and secondary income..
- Coverage that covers as long as the UP can meet needs or expenses within a certain period of time.
- Annual salary increase or inflation which usually reaches 2 to 5% per year.
An example of calculation in life insurance, if a customer or policy holder has an income that reaches Rp. 10 million, then the UP—the Sum Insured needed to cover income for five years requires around Rp. 663 million, if the customer dies. This figure includes the assumption of an annual salary increase of up to 5%.
Read More : Nationwide Homeowners Insurance
Insurance Quotes Comparison – How to Calculator Insurance Premium
After knowing how to calculate insurance, you can now compare insurance calculations related to premiums.
The amount of insurance premium paid is the result of an insurance comparison calculator in the form of multiplying the insurance premium rate with the total insurance price paid by the company. The short calculation formula is as follows:
Amount of Premium = Premium Rate X Total Sum Insured
The insurance premium rate is a number determined by the extent of risk coverage desired by the insurance company, both in the type and in the short use of the insured or insured property.
In short, the premium rate is based on the coverage that will be paid to the customer for what is insured.
Total Sum Insured
Meanwhile, the insured price is the value of each insured property. In short, the sum assured is the amount of money that will be paid by the insurance company—the insurer.
The method of determining the insured price is a calculation of the fair price at that time of the insured property, not regarding its location, commercial value, uniqueness or artistic value.
In the calculation of property insurance or household insurance comparisons, the value of land is not taken into account in determining the insurance price.
As for the type of prepaid insurance premium, the part of the premium paid in advance by the company using the insurance service to the insurance service, but the payment is not valid on the reporting date of the balance sheet for the period.
If you are still confused about how to compare insurance calculator calculations, you can use online calculator services that are increasingly widespread, including online car insurance calculator comparisons.
Read More : Getting To Know About Insurance Brokerage
Reasons for doing insurance quotes comparison
There are many reasons why it is necessary to do a comparison of insurance calculations, especially about the premium calculation. Where more details are described below.
The Premium Paid Is Not In Vain
As a policy holder or customer, of course, you need to fulfill your obligation to pay insurance premiums regularly in accordance with established rules. Of course, the premium payments that we make are expected to be of the insurance policy that we buy can be really useful and function as a financial solution for unwanted events.
By comparing the calculation between the sum insured and the total amount of premium paid, we can estimate whether it is appropriate and does not object to you, so you will not feel that the premium you paid is in vain.
Insurance Quotes Comparison – Finding Financial Solutions for Families
Insurance itself has the main function as a financial solution and protection for yourself and your family from adverse risks, such as life insurance which can provide protection to the inheritance if the owner dies.
With this, insurance provides the best solution to meet and provide for the lack of finances for the families of the victims left behind.
By using an insurance calculator, especially calculating the sum insured, it is one of the foundations to convince you before deciding to buy the insurance.
Insurance Quotes Comparison – Avoiding Potential Debt
Taking into account the calculation of premiums and sum assured can certainly be a solution for you in avoiding debt. Not only tempted by the sum assured, but you also need to calculate the premium.
Thus you do not take the wrong insurance with a premium that is not in accordance with your financial capacity. The reason is, choosing a premium that is larger and not in accordance with financial capabilities can potentially lead to delays in premium payments and you may even wait for it. The fatal thing is that if you are late or in arrears, the insurance policy can die.
Insurance Quotes Comparison – Ensuring the Insurance Function Fulfills It Appropriately
We as customers certainly expect the insurance purchased to work and function as expected. By doing a comparison between the premium and the sum assured, you can determine whether the insurance is as expected or not.
If the sum insured given is not in accordance with their needs, the selected policy will certainly swerve from the actual insurance function. Therefore, it is very important to do the calculation of the calculator correctly.
Insurance Quotes Comparison – At least those are 4 reasons why you need to do an insurance quotes comparison. Of course, now you can do calculator calculations easily with online services.