Rejecting an offer of an insurance product seems like a very common thing to do by most people today. Either because you don't need insurance, you don't need insurance protection, or some of you may be lazy to accept offers from insurance agents. When you reject an insurance offer for this reason, it could be that your reasons are not entirely correct.
Insurance products, according to their function, offer protection to you should a risk befall you. So, by having insurance, you avoid a loss that can have a direct impact on your finances. Therefore, accepting insurance offers can be a useful thing for you because the insurance offered may be able to 'protect' you.
However, the choice remains yours, whether to accept an offer for an insurance product or ignore it. Because some of you, perhaps, have the opinion that buying insurance will be detrimental for several reasons. You may agree or not, but for those of you who refuse insurance because you feel that you will lose when buying an insurance product, it could be the reason for your refusal to be right.
Why? Because there is indeed potential when you buy an insurance you may suffer losses. Instead of insurance protecting you from loss, it is you who are harmed by the insurance you bought. There are many things that can cause you to be harmed by insurance, here are some conditions that will usually make insurance give you a loss:
Having Insurance That Does Not Protect Risk
For those of you who already have insurance, try again when you first bought the insurance that you currently have. Did you, when buying an insurance product, really learn what risks will be covered by your insurance as stated in the policy? If you have never done this and only heard the exposure from the agent, you could be in this condition.
For example, the first time you bought an insurance product because you were interested in protection for 99 diseases, have you ever studied the 99 diseases and their accompanying conditions? If not, it could be that the understanding you have about these 99 diseases is different from what is stated in the policy. In fact, what will be used as a reference whether or not a claim can be stated is what is stated in the policy, not from your understanding or the agent's explanation.
So, "insurance risk does not cover the risk that will occur" is very likely to happen to anyone who already has insurance, including you. Therefore, reopen the policy that you have, and try to see if it is true that the risk that you fear could happen to you is covered by the insurance you have?
Paying too large a premium
Do you know how much protection and what type of protection you need for yourself (and your family)? If you do not know basic things like that, it could be that you are paying too much of your insurance premium every month / year. And please remember carefully, by paying too much premium then you have been harmed by the insurance you have.
Then the question arises (as well as a statement), "What's the loss? Isn't it getting better, if the premium is higher? That means that the protection is also getting bigger?" Are you among those who have thoughts like that? If you are a person who has such thoughts then the answer is: yes, you (may be) will get more and more protection, however, is this protection what you need? Like the word your dress size is M, then you buy XL size clothes, which one is more comfortable?
When applied in financial terms, this will greatly impact your finances, and it is no longer a matter of being comfortable or uncomfortable. Insurance premiums are paid with the money that comes from looking for your monthly / yearly income, then by paying a large insurance premium even though you don't need the protection, it means that you have wasted your monthly / yearly money. Even though it could be that the money can be used for holidays or sightseeing.
Investing in Insurance Products
Even though many financial planners have shared information about the mistakes of investing in insurance products, there are still some who do. The feeling of security and comfort due to the promise of "premium returns", "not forfeited money", to "returns that look great" has made many people choose to invest in insurance products.
If you do this, the potential losses that your insurance will give you may not be felt immediately, but only some time later. One of the losses that befell you is the loss from the investment results which are not too big. If the results of the investment