How Important Is Life Insurance? Let’s Read the Review!

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There are so many unexpected things that can happen in life. Not only good things, bad things can also happen at any time without signs and immediately change a person’s life. Which makes a person think about having life insurance.

Some examples are the risk of getting sick, experiencing layoffs, bankruptcy businesses, accidents, and death. One of the things that can overcome this is having life insurance that is able to provide financial protection for the families of customers who have died.

How Important Is Life Insurance? Let’s Read the Review!

So, what exactly is life insurance? For those of you who are curious, check out the reviews about the meaning of life insurance, benefits, types, requirements for submission, and tips for choosing it below.

What is Life Insurance?

Life insurance is an insurance product that provides guarantees in the form of compensation or sum insured to the family of the customer who died, had an accident, permanent disability, or other accidental risks. Because of its role, this insurance product is important to have, especially for those who act as the only backbone in the family.

What are the Benefits of Life Insurance?

  • Providing compensation when the insured party dies in the amount of 100% or more of the sum insured.
  • Provision of total permanent disability compensation with a nominal value of up to 100 percent of the sum insured.
  • Providing compensation for partial permanent disability or partial loss of function of the limbs, such as, paralysis of the legs, with the total sum insure in accordance with the proportion written on the insurance policy.

What are the Types of Life Insurance?

There are 4 types of life insurance that are generally submitte by the public, including the following.

Term Life Insurance

Provide protection benefits within a certain predetermine period of time. For example, term life insurance will only provide protection benefits with a period of 1, 5, 10, 20, or a maximum of 30 years.

With the benefits of protection in such a limite time, this product is ideally chosen by people who need short-term protection and not non-unit link type life insurance. The advantage of this type of term life insurance is that the premium cost is relatively more affordable and can be adjuste to financial conditions.

Even so, the Sum Insure or UP offere is quite high, reaching hundreds of billions, and provides additional protection benefits as neede, such as permanent disability compensation, critical illness, debt repayment guarantees, and so on.

Whole Life Insurance

As the name implies, this type of insurance will provide lifetime protection benefits to its customers. Depending on the policies and provisions of the service provider, whole life insurance is able to provide coverage until the policyholder is 90 to 100 years old.

Some of the advantages of whole life insurance are guarantee life protection and cash value benefits. With these advantages, the ideal whole life insurance is chosen by customers who are preparing for the needs of life during retirement and other financial plans. It’s just that the nominal premium from this insurance tends to be expensive, it can even be 2 times that of the term type insurance premium.

Unit Link Life Insurance

Like other unit-linke insurance products, unit link life insurance is an insurance product that combines protection benefits from various risks and investment benefits.

Because it combines 2 financial products at once, the premiums paid by the customer will be divide by a certain ratio to insurance benefits and lump sum investments. With this more complete way of working, this type of insurance can be cashe back when the customer has never submitte a protection claim.

When one day they are unable to pay the premium, the customer can also divert part of the investment funds to pay it off. Of course, the benefits of investment activities can be fully obtaine by customers without having to bother managing their capital.

However, the drawback is that the benefits of investment cannot be felt optimally because they have to be cut off insurance costs. In addition, the risk of loss due to investment can also affect the insurance balance and reduce the benefits.

Dwiguna Life Insurance

Offers protection benefits that come with savings. Like the previous type of insurance, this product will divide part of the premium into a savings account, and the rest will be allocate to insurance protection benefits.

When choosing this type of insurance, you can feel the advantage of being easy to disburse insurance funds before the duration or period of the insurance ends. In addition, if the customer is still alive until the end of the insurance active period, all sum insure can be recovere.

With these advantages, dual-purpose life insurance is suitable to be propose by customers who have long-term financial goals and are primary, such as, education costs and pension costs. However, for the shortage, the nominal premium tends to be more expensive, it can even reach millions of Rupiah every month.

Tips for Choosing the Best and Appropriate Life Insurance

Choosing the best and appropriate life insurance needs to be done carefully and through a number of considerations. Here are some tips that you can follow.

Choose According to Your Needs

The first thing that is important to pay attention to when choosing life insurance is to know what kind of protection benefits are neede. This is because each type of insurance has its own advantages and disadvantages that need to be adjuste to the needs of customers. That way, then you can get the best and optimal protection product.

Check Financial Condition

Last but not least, you also have to check the insurance premium and adjust it to the ability to pay. This must be observed because this premium burden must be paid regularly every month. If the cost is too large, the risk of difficulty paying off the premium will certainly become higher and the filing of a claim cannot be made when the payment is stagnant.

Research and Look at Product Quality

The last tip, be sure to do research on the legality and credibility of the insurance provider, including the quality of the products it offers. You do this by checking the status of their business at the OJK or the Financial Services Authority, and ensuring that the quality of the products is not inferior to those of competitors.

Immediately Apply for Life Insurance Before It’s Too Late

As one of the important insurance products for everyone to have, life insurance is able to manage future risks by providing compensation to the family when the main breadwinner dies or is permanently disable.

Depending on the provisions of the policy. The sum insure can be very beneficial for the family who is left behind in continuing their lives. That way, through this insurance. You are able to ensure that the family’s survival continues to run well. Even though you have lost the backbone of the family.

Examples of Life Insurance Products

Well, we have summarize various insurance companies in the world with the leading predicate. In terms of large capital and the best service delivery in the world. Check out the following review of the list of the best insurance in the world, come on!

Read more financial independence:

1. Berkshire Hathaway

Berkshire Hathaway came to the top of the ranking of the best insurance in the world. The value of its revenue and total assets is fantastic for the size of a financial services company. It is headquartere in Omaha, Nebraska, USA.

one of the world’s best insurers handles conglomerates’ investments in the energy, transportation and services sectors. Apart from the sale of insurance, the company also benefits from investments in various business products.

2. China Life Insurance

Headquartere in Beijing, the company is one of the best insurance pools on an international scale. Meanwhile, the company underwent a restructuring in 2003 with the main business of life insurance, asset management, property, and investment. Even cooler, this insurance has liste its name on the stock exchanges, New York, Hong Kong, and Shanghai.

3. Ping An Insurance

Ping An Insurance is a Chinese company that focuses on the health, life, and general insurance insurance industry. In addition to focusing on the insurance industry. Ping An Group is also engage in finance such as banking and asset management.

4. AIA Group

Most of you may be familiar with AIA Insurance. Its big name in Indonesia is also supporte by the company’s popularity globally. AIA Group is quite famous because it was once a sponsor of one of the european league football clubs.

5. Prudential

Prudential now has a large market network in Asian, European, and African countries. In fact, even in Indonesia, the name Prudential is also quite well known. Prudential was last liste on the london, hong kong, singapore, and new york stock exchanges. It is estimate that its customers excee 24 million people.

Some people bring about the importance of life insurance. Namu with this info can build awareness and increase knowledge. Good luck.

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