life insurance quotes, What And How To Choose It?

life insurance quotes life insurance words choose life insurance best life insurance cheapest life insurance- Human life is always full of mysteries and unpredictable disturbances. Today you are healthy, fresh, and fit, but tomorrow you may suddenly become sick or have an accident (God forbid, I hope this doesn’t happen).

life insurance quotes, What And How To Choose It?
life insurance quotes, What And How To Choose It?

If your current position is as the head of the family or the main breadwinner in the family, you should already have life insurance as an effort to protect yourself and your family from unwanted things such as accidents at work, illness, to the death of the breadwinner.

What is life insurance? Why do you need life insurance?

Quoted from AAJI (Indonesian Life Insurance Association), the definition of life insurance is a protection program in the form of transferring economic risk for the death or life of an insured person

If an analogy, life insurance is often assumed to be an umbrella in your home, a buoy on a ship or airplane. It is necessary because it is useful at certain times but is often unthinkable when it is safe. So life insurance is very reliable, especially when an undesirable situation occurs.

What is life insurance? Why do you need life insurance?
What is life insurance? Why do you need life insurance?

The purpose of life insurance is as an effort to protect your economic needs from being disrupted due to risks to breadwinners during productive times; or to prepare for a happy and prosperous old age.

No Need to Fear Life Insurance

Now is no longer the time to be afraid of insurance because insurance is a financial product that can provide peace of mind and ease the financial burden on you and your family when disaster strikes.

You could say right now, in 2019, choosing the best life insurance product and according to your needs is not easy. Because, there are many offers of life insurance products with a variety of tempting benefits. So, it will be very dangerous if you carelessly buy life insurance, especially if you don’t understand the type of life insurance.

Therefore, understanding life insurance products before buying them is important. Here’s the full review.

Recognize 4 Types of Insurance Products  Life 

Currently there are many life insurance products offered by insurance companies in Indonesia. There are life insurance products that come with additional features and benefits.

So, the question is what life insurance is right for you and your family?

Before buying life insurance products, let us first understand the types of life insurance sold in Indonesia. The goal is for you to be more careful before buying insurance and not be trapped by buying products that don’t suit your needs.

Here are 4 types of life insurance that are often offered:

1. Term Life Insurance

life insurance

Term life insurance is a type of life insurance where protection will be given to policyholders within a certain period of time, with a fairly large sum insured, which can reach billions of rupiah.

Term Life Insurance
Term Life Insurance

Term insurance coverage period has a choice of contract terms ranging from 5 years, 10 years, 15 years, 20 years and so on. The time period is adjusted to the quote from the related insurance company.

(+)  Pros:

The premiums offered are very affordable and cheap. During the contract period, the premiums are fixed and relatively cheap, the range of premiums paid starts from IDR 250,000 per month.Theamount of term life insurance premiums can be adjusted according to your financial capabilities.Premium payment options can be made monthly, quarterly, semiannually or annually.Premiums are cheap but the sum insured can reach billions of rupiah.

The age of the policyholder is between 15 to 75 years.

During the active contract period, the cost of coverage will be provided by the insurance company if the insured is unable to support his family due to health problems or dies.

(-)  Weaknesses:

The coverage system in term life insurance has a validity period / maturity. That is, if the contract period expires, the insurance is considered inactive and you will not get financial guarantees.

No cash from premiums is paid after the insurance contact is completed. As an illustration, Mr. Cermat bought a term life insurance with a period of 10 years, then Mr. Cermat’s condition remained healthy and could provide for his family until the 10-year term insurance contract was completed. As a result, Mr. Cermat had to give up the forfeit of the premium he had paid.

If you want to extend the contract period, there is a risk that the premium paid will increase in price compared to the previous contract.

Note: Term life insurance is suitable for those of you who prioritize the future of your child. Also for those of you who have a minimal budget but feel it’s time to have life insurance.

Also Read: The Importance of Education Insurance for Children

2. Whole Life Insurance

whole life insurance

Whole Life Insurance
Whole Life Insurance

This whole life insurance provides coverageLife insurance, with a limit of up to 99 years or 100 years (depending on the terms of the insurance policy).

(+)  Pros:

It is very likely that you will get the sum assured because humans rarely reach 100 years of age.Policyholders can get cash value from policies that have been paid within a certain period of time according to applicable regulations.

Insurance premiums will not be forfeited even if there is no claim and can be taken in full after the contact period is over.Premium payment options can be made monthly, quarterly, semiannually or annually.The age of the policy holder is between 1 month to more than 70 years.

(-)  Weaknesses:

The premium paid is more expensive and the coverage value ranges from Rp. 150 million to Rp. 500 million, this figure is smaller than term insurance.

The total premium that has been paid will be returned with interest in the range of 4% per year and deducted by tax fees (according to the applicable agreement).

Note: This life insurance is suitable for those of you who have no dependents and don’t want to bother your family’s finances if you die.

3. Dwiguna Insurance (Endowment Insurance)

dual-use insurance

This life insurance is called dual purpose because it provides 2 uses at once, namely as term life insurance and as savings. Dual-purpose insurance products include children’s education insurance, pension insurance, etc.

(+)  Pros:

You will get the sum assured if you die while the contract is running. The coverage value obtained is the same as for life insurance, which is in the range of Rp. 150 million – Rp. 500 million.

You have savings that can be withdrawn at any time before the contract period ends (according to the applicable agreement).

You can withdraw to make a claim before the contract period ends. This means that you can withdraw your insurance policy if you need money for urgent purposes within a certain period of time every few years (according to an agreement with the insurance company).

Julo x Pay attention

(-)  Weaknesses:

The premiums paid are not cheap, the premium costs can reach millions per month.Premium payment options can be made monthly, quarterly, semiannually or annually.

The age of the policy holder is between 1 month to 90 years.

You can get cash from the total premium that has been paid will be returned with interest in the range of 4% per year and deducted by tax fees (according to the applicable agreement).

Note: This insurance is suitable for those of you who want to ensure more about your child’s education, want to have funds for unexpected needs or want to have a pension fund in the future.

4. Unit Link Life Insurance

unit link insurance

Unit-linked life insurance is the most popular because it is offered by many insurance agents. Please note, unit-linked life insurance has 2 functions, namely insurance protection and investment.

(+)  Pros:

You have a hassle-free investment because the unit link insurance company also acts as an Investment Manager.

Unit link insurance has a longer protection period, which is a choice of 75, 80 to 100 years (according to the provisions of the insurance provider)

You as a policyholder can choose the right investment instrument and according to your financial plan.There is no system forfeit if you do not submit a claim. This means that you can take the cash value of your unit links. Cash value is funds that must be available when the periodic premium is not sufficient to pay the existing costs.

You can get additional insurance benefits (rider) offered by insurance companies. For example, additional insurance for accidents, critical illness, total disability, hospitalization costs, etc.

(-) Weaknesses:

Unit link insurance is not cheap. Monthly premiums are more expensive than other life insurances.The return on investment is not great. It should be understood that unit link has a focus on life insurance, not investment. So don’t expect you to get very large unit link investment returns, because there is still a risk if investment growth in the market drops.

There is no guarantee that the investment development projection of the unit link insurance product is as good or as good as the insurance agent’s explanation. Remember, there are many investment risk factors that you need to understand.

Note: Unit link insurance is suitable for those of you who want to invest while having insurance as protection.

Tips for Choosing the Best and Trusted Life Insurance

Tips for Choosing the Best and Trusted Life Insurance
Tips for Choosing the Best and Trusted Life Insurance

1.Do Research and Understand Life Insurance Products

The research in question is to understand the ins and outs of life insurance products so that you are not trapped and choose insurance products that are not suitable.

For beginners, this research is very important so as not to be trapped by aggressive offers from insurance sales agents. Learn and understand the pluses and minuses of the insurance products offered. You can look for product information from the life insurance website or at hatii.com.

2. Determine the Reason Why You Need Insurance

After research, next is to ask yourself, what is your purpose for taking insurance?soul?

Understand the benefits of life insurance in the future as financial protection for your family if the head of the family has an accident that causes death or permanent disability so that you can no longer work productively.

Also understand the general rules of life insurance, namely there are life insurance products that offer high sum insured but the premium will be forfeited, or vice versa, namely small sum assured but the premium will be returned. which one do you want? just adjust it to your needs.

3. Choose Insurance Premiums According to Your Budget

There are many life insurance products with various features in them that can affect the premium price. If you already know the purpose of why you need life insurance, then just choose a life insurance product that offers premiums according to your budget.

Recheck your financial ability to pay premiums, don’t let there be problems in paying life insurance premiums. Remember! insurance does not have to be expensive, all tailored to your goals in the future. Now there are many life insurance products with affordable premiums and a large sum insured. In essence, buy as needed, understand the terms and conditions of insurance that apply before buying it.

In fact, there are many offers of low-cost family life insurance packages with affordable premiums, or investment package life insurance, life insurance with education fund packages, etc.

For the record, before you buy any life insurance package with an affordable premium offer, make sure you read and understand the terms and conditions that apply so you don’t regret it later.

Life Insurance Illustration

After knowing in general the benefits of life insurance, look at the needs of yourself and your family to choose the right life insurance. Suppose you are an employee who is 30 years old, with a large income of around 8 million per month.

You and your family are already covered by health insurance at the office which is quite good, so you don’t need health insurance from outside anymore. You don’t have any external debt installments, maybe only mortgage installments worth 2 million per month for 10 years.

With income ranging from 8 million per month, salary increase every year and only 1 mortgage installment of 2 million, your family’s financial condition is said to be well established. This condition makes you take insurance just because you want to protect your children and wife in the future, and get a big pension. Seeing this condition, you should join Dwiguna Life Insurance with a contract period of 25 years and coverage of 500 million.

Suppose you die 20 years later your family will get a dependent of 500 million. If you are still alive until the end of your 25-year contract, your family will still get a dependent of 500 million.

Confused about finding the best and cheapest health insurance? Cermati has a solution!

Carefully Choose Life Insurance

Once again life insurance will be useful as financial protection in the future. The key to choosing the best and most trusted life insurance is to understand your needs. Do not buy life insurance just because you are persuaded by an insurance agent, without knowing the ins and outs. If you choose the wrong life insurance, chances are your family’s economy will fall apart, you will lose and regret. Be careful when choosing insurance!

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