financialtreat – will explain about the Types of Benefits and Term Life Insurance that Need to be Know which you will get in the following article. let’s look at this article carefully!
It is undeniable that in Indonesia, it may be familiar with the name of life insurance. The reason is, this product provides many financial benefits to its policyholders. However, indonesians still do not seem to be very familiar with one type of life insurance, namely term life insurance . For that, let’s look at the discussion of this article which will discuss what is term life insurance?
Then, what is the meaning of term life insurance? Then, how is it different from other life insurance? Like life insurance, this product provides additional financial assistance to the family or parties that have been determined by the insured if at any time the insured has a close age. However, regarding the applicable era, the insurance is in an exclusive period of time, therefore this product contains the word “Futures”.
Types of Benefits and Term Life Insurance that Need to be Understood
Because it is part of life insurance, term life insurance is also one of the financial service products that can help and make it easier for people to achieve financial freedom. In the following, Qoala will give a full explanation with regard to what is term life insurance? and the difference with whole life insurance.
Overview of the Definition of Term Life Insurance
As is known, term life insurance or commonly known as term life insurance is a type of insurance that adds assistance according to the period you have previously determined, for example, providing insurance for the next 5 years, or the next 25 years, or especially for example until you turn an exclusive age.
Term life insurance also adds cash value benefits that are optional and this insurance can be combined with other insurance products such as health insurance or personal accident insurance.
Models of Term Life Insurance
There are several types of term life insurance that can be chosen according to the needs of the policyholder. Here are some of them, such as:
1. Term Insurance is renewed Annually (Yearly Renewable Term/Yrt Insurance)
Term insurance with an active era of one year can be renewed annually by policyholders up to the age limit. Usually aged 65 to 70 years. However, the insurance coverage fee of the insurance policy will increase every time it is renewed. This increases as the policyholder ages, because the greater the risk.
2. Fixed Term Insurance (Level Term Insurance)
This fixed term insurance has a predetermined period according to the time of granting on the policy. So that the term of the insurance policy can be more than one year. The policyholder does not need to carry out updates for this insurance model.
3. Increasing Term Insurance
This insurance will protect the policy from inflation due to the increase in provisions every year. So that insurance will start from an exclusive amount with a content that has been set periodically when the policy is still active, for example five percent per year. Insurance coverage dues will automatically increase according to the increase in the sum insured. But, this type of insurance is quite rare on the market.
4. Decreasing Term Insurance
Term insurance decreases this means that benefits will decrease during the current policy period. Usually, this insurance policy deals with credit loans. The amount of benefits obtaine will decrease slowly until it becomes zero, at the end of the policy period.
Not only that, in term insurance, additional benefits will usually be offere. Such as the benefit of family income to provide benefits in the form of income to the family if the head of the family (insure) dies during the insure era. The amount of policy insurance coverage dues generally remains the same as long as the policy occurs.
5. Family Income Benefit
Most companies offer this benefit as an additional benefit and the insure can attach it to his fixe policy. Not only that, this policy is also design to add benefits in the form of monthly, quarterly, or year income to the family until the policy period ends if the head of the family (insure) dies during the coverage period.
Example of a Term Life Insurance Product
Here are some examples of term life insurance in Indonesia that you can consider before choosing it, including:
Allianz Life has three life insurance products with different benefits. Some are combine with investment products, moreover, some provide additional protection in the form of assistance from 49 kinds of diseases.
Not only that, Allianz life insurance will also provide death compensation due to accidents and also exemption of insurance coverage contributions if the participant is affecte by a critical illness and even dies.
This british world insurance company already has the designation as a health insurance provider. Even so, the life insurance product is also quite interesting. Because, the sum insure for the insurance product reache IDR 2 billion.
The advantage is that Prudential Indonesia provides additional insurance coverage contributions that are quite affordable starting from IDR 200 thousand per month. That way, to get the protection and benefits provide, you will not feel burdene when setting aside your income.
The insurance company, which is almost three decades old, has some of the best life insurance products. Cigna is one of the leading insurance companies in the Unite States. Cigna’s life insurance product is also offere with low insurance coverage contributions, starting from only IDR 200 thousand per month. The choice of sum insure also varies, namely between Rp. 150 million, Rp. 500 million to Rp. 1 billion.
Not only has health insurance, Sequis Life life insurance can also be use as an example of term life insurance in Indonesia which is widely recommende. Some of its insurance products have low insurance coverage contributions, starting from only IDR 33 thousand per month. While the choice of sum insure starts from IDR 50 million, IDR 100 million to IDR 300 million.
Sinarmas Life Insurance
As a major player in the field of general insurance in Indonesia, Sinarmas also participates in providing life insurance products with affordable insurance coverage contributions. One of the insurance companies of Sinarmas group is Sinarmas MSIG Life. For example, a traditional life insurance product from Sinar Mas provides compensation for death due to accidents of up to IDR 2 billion
BCA Life Insurance
Having the largest bank network in Indonesia with millions of customers, BCA Life provides more benefits by providing life insurance products of choice for its customers. The amount of premiums is also various, ranging from IDR 200 thousand per month with sum insure up to IDR 1 billion.
BNI Life Insurance
Terakhit, this state-owne company also has a life insurance product that is no less attractive. One of its superior products is the BNI Life Plan Multi-Protection with insurance coverage contributions starting from IDR 100 thousand per month.
Not only getting life protection, the products offere by BNI Life also provide additional optimal investment value. If neede, you can also provide investment funds so that you get maximum profits.
Benefits of Term Life Insurance
Term life insurance products also have many benefits for their customers. Here are some of them:
Provide additional financial support to the family of the insured or heir
Life insurance certainly adds a sense of conduciveness to the family of the insure or heirs. Especially from the financial side. Because if the insure is the sole breadwinner in the family, it will hold the family back from losing its livelihood.
Tackling bad debts
In Indonesia, we often hear about the problem of bad debts or a party failing to pay off its debts to creditors. Life insurance can be use to minimize such incidents, if it happens to creditors or debtors.
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Assist in long-term fund management
If you have long-term planning from the financial side such as children’s education, old age collateral and also setting up a business, then life insurance is very useful to help you manage funds in the long term.
So, you no longer need to bother setting aside private money for these three things to meet the needs of you and your family in the future of visiting. Simply pay insurance coverage contributions and focus on what you want to achieve
So, those were some reviews that discuss what is term life insurance? Hopefully, this article will be useful for all of you and thank you.