Life insurance has several types. Each type has its own advantages and disadvantages. But we as consumers often hooh-hooh hear the agent's explanation to then approve the offer given. Though not necessarily the insurance offered in accordance with our needs. When paid premium, just realized. Finally angry yourself. Falsely accused of fraud, or even vilify insurance companies in the public sphere. Now is the Internet era. We should be grateful for so much information that we can get from cyberspace, as long as not a hoax alias lie. So, before agreeing to spend large amounts of money on a matter, including life insurance, we can simple research first by browsing the Internet. Is it really worth the money you'll get? Do you really need it? Do-do not need it.
An example below. We will examine the types of life insurance and its advantages and disadvantages. If you are looking for the right life protection, this information can be used as one of the references: 1. Life Insurance is often selected those who have professions with high risk in a certain period, not forever (youtube) By insurance companies, This is often called term life insurance. This provides protection in accordance with the agreed timeframe. If during the protection period there is no claim, the premium fund is automatically forfeited. This type of health insurance premium is generally cheaper than other products. Read: BUYING LIFE INSURANCE PROGRAM
By type, life insurance is still divided into several products, namely: - Yearly renewable term insurance: premiums and policies are renewed each year and usually increase in value per year. - Level: the premiums and benefits rendered remain for the duration of the policy. - Decreasing term insurance: the benefits provided decrease until the term of the policy expires. - Increasing term: the benefits given rise until the term of the policy expires according to the inflation. This product is very rarely offered. - Family income benefit: the family benefits in the form of monthly, quarterly, or annual income, when the policyholder dies. Advantages: - Can get protection with minimum premium, even adjusted to the financial ability. Disadvantages: - Premium money is forfeited if there is no insurance claim during the policy valid. Actually good also because it means nothing happened to the policyholder, including death. 2. Life Insurance The existence of cash value into plus points from this life insurance (blogspot) Another name of this life. Contrary to term, this product offers lifetime protection (up to 99 or 100 years old).
There is an element of savings in this insurance, because the paid-in premiums can be disbursed after the contract period expires if there is no claim. This type of insurance is generally still divided into two, namely: - Participate If you choose life insurance for life, the policyholder will get a dividend from the insurance company's excess profits. - Not participating Conversely, if you choose this type of life insurance, the policyholder does not get a dividend. Pros: - There is a cash value of the paid premium - The cash value can be used to pay the next premium - After the protection period is over, the premium money is not burned Disadvantages: - Premiums are more expensive - The cash value is less than the general inflation rate. 3. This insurance is often chosen for children's education fund, especially before unit link insurance boom (yayasanmuslimin.org) In the insurance company brochure, this insurance name is usually called endowment. As the name implies, this offers two uses: protection and savings.
There is a cash value of the premium returned to the policyholder within a certain period of time, for example every three years or five years. This product is often chosen as an alternative child's education savings. Advantages: - Can be used to design the education fund of children in accordance with the period of cash value - Insurance fund can be liquid even though the policyholder is alive when the protection contract ends Disadvantages: - Premium is relatively more expensive than other types of life insurance 4. Unit Life Insurance This soul is similar to dual-life insurance. The main difference is the existence of investment function in this insurance product. Later, the premium paid will be used as investment capital by the insurance company. The policyholder will receive an investment report as well as the return on the investment. But it also means there is a risk of loss because it is not impossible that the investment is losing money.
Disadvantages: - Relatively larger premiums - The yield is generally smaller than other direct investments, for example mutual funds - There is a risk of loss of investment, so the sum insured is smaller than illustrated According to the record of the Indonesian Life Insurance Association (AAJI), this insurance premium tends to increase. That is, there is a tendency people begin to understand the importance of this insurance product. But this trend is ideally accompanied by knowledge of life insurance that also soared. You can be one of the parties who help the dissemination of information about life insurance lho. Understand, then share to the needy.