often we as consumers just nodded listening to insurance agents who offer their products. Most of these agencies offer a product that sells, not the products that we need. The problem, consumers often do not understand and do not really understand what exactly the insurance products he needed.
Basic knowledge about the types of life insurance that sometimes a headache. There are still many consumers who can not distinguish between traditional products with non-traditional products. While the agents are also rudimentary explanation only, not really satisfy the thirst of curiosity of the customers. Instead, customers also need to ask and have more knowledge about insurance.
Regarding the types of insurance, at Indonesia, a type of insurance is divided into two major types, traditional insurance and non-traditional insurance.
Traditional insurance is divided into three types. Insurance Termlife (futures), whole life (whole life), and endowment (endowment).
It's worth taking a moment to understand further the types of insurance.
Insurance Termlife (futures)
Term insurance provides protection only within a limited period only. Protection can be as short plane ride from Jakarta to Semarang for less than two hours or as long as 20 years. Typically, there is a time limit of insurance protection. In addition, if there is no risk, the insurance money is not returned or forfeited.
Basic knowledge about the types of life insurance that sometimes a headache. There are still many consumers who can not distinguish between traditional products with non-traditional products. While the agents are also rudimentary explanation only, not really satisfy the thirst of curiosity of the customers. Instead, customers also need to ask and have more knowledge about insurance.
Regarding the types of insurance, at Indonesia, a type of insurance is divided into two major types, traditional insurance and non-traditional insurance.
Traditional insurance is divided into three types. Insurance Termlife (futures), whole life (whole life), and endowment (endowment).
It's worth taking a moment to understand further the types of insurance.
Insurance Termlife (futures)
Term insurance provides protection only within a limited period only. Protection can be as short plane ride from Jakarta to Semarang for less than two hours or as long as 20 years. Typically, there is a time limit of insurance protection. In addition, if there is no risk, the insurance money is not returned or forfeited.
This type of insurance has the cheapest premiums among other insurers. The coverage can be huge money, billions with a premium that is not breaking the bank too. Type of term life insurance has no cash value. If at the expiration of insurance contract the insured is still hale and hearty, the contract expires and no money is given to the insured.
Many people who do not like this product because there is no money that is returned when the contract expires and the customer fit and healthy. Strange indeed, there are people who are not grateful to have been blessed with health and longevity. Actually the type of term life insurance is analogous to hiring a security guard for one night to keep the house with abundant possessions. If the theft does not happen on that night, if we can pull back the salaries of security guards the next morning? Should not we be thankful for our homes safe?
Due to a large sum, to buy this kind of insurance premium is not too easy. Most insurance companies that sell this type of insurance requires that clients undergo a medical examination first before buying the policy with insurance example of Rp 2 billion.
If it does not pass inspection, customers are not allowed to purchase this type of insurance. Or maybe just the sum assured is revealed to be smaller.
Insurance premium is much smaller than the premiums to be paid when buying a unit-linked product. Many financial planners suggest if you buy this type of insurance product should be accompanied by buying mutual funds. Because, when the insurance period ends and no healthy insured sum given.
So that when combined with the mutual fund, insurance fund at the end of the development of the mutual fund investment is quite a lot. Combination of term insurance and mutual funds, will result in a much higher investment than buying a unit-linked. By paying the same premium, sum assured is also much larger.
One thing that is needed is the discipline to save money every month in a mutual fund every month in order to obtain maximum benefit and results.
Whole life insurance (whole life)
After identifying a term life, there is also a second type is called whole life.
This insurance contains the value of savings. Protection period was longer, up to 99 years. This insurance is referred to as a refinement term life insurance with no cash value. You will recall that in the absence of risk of death, at the end of the contract term insurance customers do not get anything?
Well, to satisfy customers who moan about term insurance, the whole life insurance, when the contract expires and the insured is still hale and hearty, no cash value is given. Risk, the premium paid is more expensive because of the risk of a claim definitely happen. There is rarely a healthy person up to the age of 99 years, right? In Indonesia, the life expectancy of men 65 years and women 70 years of age.
Cash value whole life policy can be used as collateral for loans, and there is a bonus dividend of the company for the whole life policy holders. Moreover, if it can not pay the premium, the policyholder may withdraw funds from the cash value. This feature does not exist on the type of term life insurance.
The next question, how much money will I get when the insurance period ends later? Usually insurance agents provide illustrations at the age of so many years will be out of funds a few hundred million. Again, do not be dazzled by illustrations that show the number of millions. That figure looks great at the moment, while inflation continues to erode the value of money and the time comes, a few decades from now, as much as it really is not that big.
Cause, it was just developed with the yield of 4 percent per year. Much lower than the interest rates on the market. Yield of the still not cut costs and taxes.
On the other hand, the real inflation rate reached 12 percent. So that the whole life insurance cash value will be eroded by inflation and the value is not as illustrations presented to the prospective customer. It may be that, when the policy matures, the cash value to be very small.
Cost of the premium to be paid to get the insured of Rp 1 billion, for example, will be far greater than the cost of the premium to be paid if you buy term insurance. How is it different, can be seen in the literature on the calculation of insurance premiums.
Endowment insurance (endowment)
The third type is the traditional endowment insurance. This type of term insurance is as well as savings.
This product is very popular before the advent of unit-linked products. Diverse forms of endowment insurance. Besides having a cash value, there is also the futures funds expended prior to the insurance contract expires. These funds come out periodically for example every 3 years or 5 years. For example as education insurance who are spending when the 5 year old child to kindergarten entry fee, entry fee 7 years for elementary school and beyond.
Unfortunately, this endowment insurance premiums are much more expensive than term insurance premiums as well as whole life.
Later, the prestige of this type of insurance endowment faded with the rise of unit-linked products. Moreover, because the royal bonuses, endowment insurance costs actually burdensome insurance company.
Many people who do not like this product because there is no money that is returned when the contract expires and the customer fit and healthy. Strange indeed, there are people who are not grateful to have been blessed with health and longevity. Actually the type of term life insurance is analogous to hiring a security guard for one night to keep the house with abundant possessions. If the theft does not happen on that night, if we can pull back the salaries of security guards the next morning? Should not we be thankful for our homes safe?
Due to a large sum, to buy this kind of insurance premium is not too easy. Most insurance companies that sell this type of insurance requires that clients undergo a medical examination first before buying the policy with insurance example of Rp 2 billion.
If it does not pass inspection, customers are not allowed to purchase this type of insurance. Or maybe just the sum assured is revealed to be smaller.
Insurance premium is much smaller than the premiums to be paid when buying a unit-linked product. Many financial planners suggest if you buy this type of insurance product should be accompanied by buying mutual funds. Because, when the insurance period ends and no healthy insured sum given.
So that when combined with the mutual fund, insurance fund at the end of the development of the mutual fund investment is quite a lot. Combination of term insurance and mutual funds, will result in a much higher investment than buying a unit-linked. By paying the same premium, sum assured is also much larger.
One thing that is needed is the discipline to save money every month in a mutual fund every month in order to obtain maximum benefit and results.
Whole life insurance (whole life)
After identifying a term life, there is also a second type is called whole life.
This insurance contains the value of savings. Protection period was longer, up to 99 years. This insurance is referred to as a refinement term life insurance with no cash value. You will recall that in the absence of risk of death, at the end of the contract term insurance customers do not get anything?
Well, to satisfy customers who moan about term insurance, the whole life insurance, when the contract expires and the insured is still hale and hearty, no cash value is given. Risk, the premium paid is more expensive because of the risk of a claim definitely happen. There is rarely a healthy person up to the age of 99 years, right? In Indonesia, the life expectancy of men 65 years and women 70 years of age.
Cash value whole life policy can be used as collateral for loans, and there is a bonus dividend of the company for the whole life policy holders. Moreover, if it can not pay the premium, the policyholder may withdraw funds from the cash value. This feature does not exist on the type of term life insurance.
The next question, how much money will I get when the insurance period ends later? Usually insurance agents provide illustrations at the age of so many years will be out of funds a few hundred million. Again, do not be dazzled by illustrations that show the number of millions. That figure looks great at the moment, while inflation continues to erode the value of money and the time comes, a few decades from now, as much as it really is not that big.
Cause, it was just developed with the yield of 4 percent per year. Much lower than the interest rates on the market. Yield of the still not cut costs and taxes.
On the other hand, the real inflation rate reached 12 percent. So that the whole life insurance cash value will be eroded by inflation and the value is not as illustrations presented to the prospective customer. It may be that, when the policy matures, the cash value to be very small.
Cost of the premium to be paid to get the insured of Rp 1 billion, for example, will be far greater than the cost of the premium to be paid if you buy term insurance. How is it different, can be seen in the literature on the calculation of insurance premiums.
Endowment insurance (endowment)
The third type is the traditional endowment insurance. This type of term insurance is as well as savings.
This product is very popular before the advent of unit-linked products. Diverse forms of endowment insurance. Besides having a cash value, there is also the futures funds expended prior to the insurance contract expires. These funds come out periodically for example every 3 years or 5 years. For example as education insurance who are spending when the 5 year old child to kindergarten entry fee, entry fee 7 years for elementary school and beyond.
Unfortunately, this endowment insurance premiums are much more expensive than term insurance premiums as well as whole life.
Later, the prestige of this type of insurance endowment faded with the rise of unit-linked products. Moreover, because the royal bonuses, endowment insurance costs actually burdensome insurance company.
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money
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