financialtreat – will explain about See the Types of Life Insurance you need to know! which you will find in the following article. let’s look at this article carefully!
In future planning, there is a lot to prepare, one of which is a life insurance plan that will protect against risks. Life insurance is one of the important insurances include in future planning. Why is it important? In order to be aware of the answer, you need to be clear what life insurance is and what are the benefits.
Base on the Indonesian Life Insurance Association (Aaji), life insurance is an insurance service or program that adds support in the form of transferring financial risks to the implications of the death of family members who are policyholders (Insure). This insurance service will provide additional provisions in the form of dependents for the family if the policyholder dies or something else untoward happens.
Come on, See the Types of Life Insurance you need to know!
The policyholder as the insure who pays insurance coverage contributions periodically to the life insurance plan company. Then if the policyholder dies, the insurance company will add the sum insure (Up) to the family left behind in accordance with the agreement in the contract.
Let’s Get to Know What Life Insurance Is
What is life insurance? The definition of life insurance is a relief program for families in the event of unwante things, such as death, to the insurance policyholder. Yes, like the example above, life assistance is intende to provide additional financial security and also assistance of course to the family left behind if they die.
Simply put, we as the person in charge are oblige to pay a certain amount of insurance coverage contributions periodically. Later when we die, the money will be given by the insurance company as a Sum Insure (Up) to the family left behind as state in the contract agreement.
Unfortunately, the problem of the Indonesian population to have help in the form of life protection still tends to be low. From the research data collecte in the Manulife Investor Sentiment Index in previous years, it shows that only 1Persen can have life support as a priority.
Hi, Buddy Sikapi! What’s the news? Hopefully, in the midst of a pandemic, all of you in a situation will be fine and healthy all over. In the midst of the emergence of the current pandemic, health is certainly a very important thing to get more attention. But also keep in mind, buddy, health is not only important to pay attention to during a pandemic, buddy! but in any atmosphere it is important to keep an eye on health.
Often unwante things can happen unexpectedly to our family or ourselves, for example, getting a critical illness to an accident that can have the impact of death. Well, to anticipate the financial losses that arise from the implications of the situation, you can buy a life insurance policy so that you can get the sum insure.
Life insurance is a contract agreement between the policyholder (insure) and the insurance company (insurer) in which the insurance company promises to add payments base on the death of the insure or payments base on the life of the insure with benefits of a predetermine amount and/or base on the results of fund management.
This insurance will protect the insure from the effects of unexpecte financial losses cause by a person if they experience sudden death, overall stigma, or unproductive conditions (very old or living a very long life) in order to make them lose their source of income.
Life insurance has different benefits. Therefore, there are several life insurance models that you need to know. Let’s look at the following life insurance models:
1.Term Life Insurance
All term life insurance products provide coverage for one exclusive period of time calle the policy term. The benefits of this insurance policy can be paid only if:
- (1) The insure dies within the stipulate period of time,
- (2) the policy is still valid (In force) when the Insure dies.
If the Insure is still alive until the specifie period of time, then the policy will give the policyholder the right to continue life insurance coverage. If the policyholder does not continue the coverage, then the policy will end and the insurance company is not oblige to add further coverage.
The types of term life insurance coverage are:
- Term Life Insurance With Fixe Sum Insure (Level Term Life Insurance) which adds death benefits in the same amount during the term of the policy.
- Term Life Insurance with Decreasing Term Life Insurance is providing additional death benefits whose value decreases during the coverage period. The benefit of this policy begins with a predetermine coverage value and then decreases over the period of coverage in accordance with the method describe in the policy.
- Term Life Insurance With Increasing Term Life Insurance, which provides an additional death benefit that starts at a value and increases with an exclusive value or rate at a predetermine interval during the policy period.
- Whole Life Insurance
This insurance has 2 (two) characteristics, namely:
- Provide additional life coverage to the Insure as long as the policy is still valid (In force); and
- Add insurance coverage and have a savings element.
The types of life insurance coverage for life are:
1.Traditional Whole Life Insurance
This type of insurance provides additional life coverage with a fixed insurance coverage contribution rate (Premium rate) that does not increase along with the increase in the insured’s age.
2. Last Survivor Life Insurance
This insurance model is also referre to as second-to-die life insurance. Which is a type of combine whole life insurance where the policy benefit is only paid. After the two insure people of the policy die.
This life insurance liability contribution is only paid until. The first Insure dies or the insurance coverage contribution can be paid until the second Insure dies. This insurance is specifically designe to provide additional coverage to marrie couples. Who want to have funds to pay estate taxes that are charge after their death.
3. Joint Whole Life Insurance
This type of insurance has the same features and benefits. As whole life insurance for individuals except that this insurance covers two lives in the same policy. Often calle first-to-die life insurance because after the death of one of the Insureds. The death benefit in the policy will be paid to the surviving Insure. And the end-of-date policy coverage.
3. Dwiguna Life Insurance (Endowment Insurance)
This insurance model adds an amount of exclusive benefit whether. The Insure lives until the end of the coverage period or dies during the coverage period. Each life insurance policy to have a maturity date. Which is the release of the payment of the sum insure. By the insurance company to the policyholder if the Insure is still alive. The maturity will be reache at the end of a predetermine period of time. Or when the Insure reaches a predetermine age.
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4.Unit Link Insurance
Unit link insurance is an insurance that combines the benefits of insurance with investment. The insurance coverage contributions paid will be allocate into two separate management procedures. Namely the management of basic insurance coverage contributions for protection purposes. And the management of investment insurance coverage contributions.
Investment insurance coverage dues are manage by the Investment Manager or the company’s investment experts. By purchasing a unit link product. An Insure person can still benefit from insurance assistance as well as returns on product unit link investments in Indonesia. Generally held by life insurance companies.
Well, buddy, those are the types of life insurance plans found in Indonesia, quite varie, right? Of course, it is necessary for you to remember that before buying a life insurance policy. You are oblige to first understand the life insurance product to be chosen. Not only that, also make sure that the insurance company you choose has been registere. And supervise by the OJK so that you don’t experience unwante losses. Thank you for your attention.