Bank Protection Insurance is an insurance product the result of cooperation between an insurance company and a bank . This partnership brings benefits to both parties, banks with additional benefits from the sale of insurance products, as well as insurance companies that get customer expansion without the need to add agents or expand the sales network.
Bank Protection Insurance is different from ordinary insurance products because customers will get additional benefits from the bank, for example from automatic debit and claim management assistance from the bank.
In addition, bancassurance also provides benefits for customers, such as:
- Customers more easily get insurance companies.
- Get two services in one place at a time.
- For customers who take bancassurance, usually they will be given credit facilities from the banks.
Benefits of Using Bank Protection Insurance
- Can be used for various investment purposes , for example for education funds, savings or pension funds. This product can meet the needs for savings, financial planning, protection as well as for investment.
- Diverse choice of investment funds , according to the magnitude of risk tolerance and the potential benefits to your liking.
- The amount of life protection can be chosen as needed, and can be added as needed.
- Freedom to add or withdraw funds at any time and your insurance protection continues.
- Growth of investment funds can be monitored every day.
Deposit Insurance Agency
In Indonesia, there is an independent institution that has a function to guarantee customer deposits at banks, namely the Indonesian Deposit Insurance Corporation (LPS) . LPS was formed based on Law No. 24 of 2004 concerning the Deposit Insurance Agency. This institution was formed to overcome the crisis of confidence in banks, one of which is to provide guarantees for all bank payment obligations, including public deposits ( blanket guarantee ). LPS guarantees the value of customer deposits up to Rp2,000,000,000 (two billion rupiah).