Life Insurance
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| Life Insurance |
Life insurance is insurance where
the insured is someone who is that person's life. Life insurance includes
health and accident insurance.
The purpose of life insurance is to
cover the risk of loss of wealth and assets. If someone who is the main axis of
the family dies, the family left behind will not lose their source of income.
Types of Life Insurance
# Term Life Insurance
Term life insurance is a life
insurance product that provides death compensation if the insured dies within
the promised period. For example, the age of 1 year, 5 years, 10 years, 20
years, or up to a certain age limit. This type of insurance has a contract that
is valid for a certain period of time.
The insurance company will pay
insurance benefits to the heirs if there is a risk of death during the
insurance contract period. Term insurance is an option for people with high
premiums with limited financial conditions. For example, you have a mortgage
(KPR), car loan (KPM), or other loan.
If the insured dies when the payment
has not been paid off, the remaining loan will be repaid with the proceeds of
term life insurance. Term insurance premiums increase with age because the risk
of death increases with age.
# Life Insurance for Life
Whole life insurance is insurance
that covers your entire life up to the age of 99 years. This type of insurance
aims to provide lifelong protection to the insured as long as the policy is
valid by paying regular premiums.
This whole life insurance replaces
death that occurs during the term of the policy. This insurance provides
benefits if the recipient of the premium dies and has a cash value that can be
used as loan collateral.
Whole life insurance premiums do not
expire without a claim being filed. Premium holders can use the cash value of
the premium paid to pay the next premium if they do not have the funds to pay
the premium regularly. At the end of the contract, you will be asked to pay the
full insurance premium.
# Dual Life Insurance
Endowment insurance has two
benefits, namely term insurance and savings. The coverage period starts between
5 and 30 years and can end at a certain age.
Endowment life insurance premiums
can be paid during the policy period or for a limited period of time. If there
is an element of savings, the premium will be higher than term or whole life
insurance. This type of life insurance provides tangible returns, so you can
plan your child's care and prepare for retirement.
The holder of a dual-purpose life
insurance policy receives benefits in the event that the insured dies. Joint
life insurance policy holders can terminate the insurance contract within a
certain period of time prior to the expiration of the contract term.
# Unit Link Life Insurance
Unit-linked life insurance is a
product that combines protection and investment functions created by a life
insurance company. Unit-linked life insurance offers two benefits: equal
protection of life insurance and benefits of equity participation in the form of
cash value.
In addition to the coverage
coverage, policyholders receive annual value-added investment income. Part of
the unit-linked life insurance premium is invested in investment funds, stocks,
bonds and other securities. The premium paid can be reduced or stopped as long
as the cash value of the investment and development is sufficient to pay the
premium. However, the benefits of unit-linked life insurance are not comparable
to pure capital investments such as shares and investment funds.
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