types of life insurance

types of life insurance

Before discussing the types of life insurance, if any of you who still think that buying life insurance is unimportant? If there is, it's good to listen to some facts below that makes the life insurance is so important for the entire community:

    Every 7 people who died in Indonesia, one of them because stroke.-Ministry of Health of Indonesia, 2011.

    Non-communicable disease deaths increased to 59.5% in 2007-Health Minister Endang Rahayu Sedyaningsih 2011.

    Based on the survey of World Health Organization (WHO) in 2002, 10 causes of death in Indonesia is coronary heart disease, tuberculosis, vascular disorders, respiratory diseases, diseases of the newborn, lung disease, traffic accidents, diabetes mellitus, high blood pressure, and diarrhea ,

    Tower Watson's 2011 Global Trends Medial mention health care costs in Indonesia meninggkat 10 to 14% in the last three years.
These facts are enough logical reason to buy life insurance. You certainly do not want it when you die or suffer permanent disability troubling your family?
Well, if you're interested in buying life insurance, you must know in advance the types of life insurance in order to buy the right insurance products. There are currently three types of life insurance products used by life insurance companies in Indonesia. These products are:Term Life Insurance
insuranceAsuransi term life term life (futures) function to provide protection to the insured within a specified period only. The advantages of this product is the customers get the freedom to determine premiums according to their abilities. Ideally, the insurance premium starts from Rp. 250,000 per month.
Another plus is the insurance money to be had by the policyholder could reach billions of rupiah. This means that when the insured dies while the contract period is still active, then the insured family will receive insurance money very much.
Meanwhile, the lack of term life insurance is the insured may lose policyholders and their insurance money if he does not have health problems and died until the contract expires. This makes many users began to leave the insurance is an insurance product.
 Whole Life Insurance
whole life insuranceAsuransi whole life (lifetime) is an insurance product that provides benefits of up to 99 years of protection. The best part is this insurance allows policyholders to obtain cash value and the policy that has been paid. Another added value is if the insured can not pay the premium installments regularly, they can use the cash value of premiums already paid to pay further premiums.
Kekuranganya is the insurance premium is more expensive than term life insurance premiums (can be 2-fold or even more). This is caused because the life expectancy of the people of Indonesia for men is 65 years, while a woman is 70 years old so that insurance claims before the end of protection there must be.
In addition, the cash value and the total premium given not too much because the insurance rate is only 4% of it per year. The worst part, the interest will be taxed so that customers can only receive the cash value of a low or even none at all.Endowment insurance
endowmentJenis insurance latter is endowment insurance (endowment) which is a term life insurance as well as savings. This means that the policyholder can get the cash value of the insurance premium already paid and could draw the insurance policy within a certain time before the contract expires. For example, the insured needs education funds to send their children, then he can claim his life insurance policy with the insurance record is only given in a few years according to the agreement.
Disadvantages of this insurance product is fairly expensive premiums because this product has two functions. This makes this type of insurance is only interested by the upper middle class who can afford to spend millions of rupiah to pay a premium per month.
See the table below to compare to the above three types of insurance:
  Term life insurance whole life insurance endowment insurancePremiums Low (customizable with the ability of the policyholder. The range of policies ranging from Rp. 8,470 per day) is quite expensive (polis range from Rp. 300,000) Very expensive (premium range from Rp. 3,000,000 per year)Monthly premium payments, quarteran, semiannual, annual and monthly, quarteran, semiannual, annual and monthly, quarteran, semiannual, and annualDuration of protection Futures (5, 10, 15, and so on) Lifetime (99 years) Futures and lifetime (1-99 years)Policyholder age 15-75 years (depending on the regulation of life insurance companies) from 1 month to 70 years (or more) 1 month-90 yearsThere's No cash value (4% of total premium per year) Yes (can be more than 4% of the total premium per year)Sum could reach billions of rupiah 150-500 million 150-500 millionCompensation Died world, critical illness and permanent disability total nilanya could reach 500 million Died world, critical illness and permanent disability total nilanya could reach 500 million Died world, critical illness and permanent disability total nilanya could reach 500 millionAdditional benefits (rider) No Yes (the benefits of critical illness, accident, and health as well as the suspension of the premium) Yes (benefit critical illness, accident, and health as well as the suspension of the premium)
For additional information, there are now manifold Unitlink life insurance is increasingly popular because it has a kind of life insurance protection and investment value are promising. This means that customers who buy insurance unitlink not only get a guarantee of protection, but also the value of an investment with high interest annually as well as additional benefits.
These investments are managed entirely by the insurance, the policyholder just waiting for the distribution of profits alone. However, unit-linked insurance also has shortcomings where the policyholder will only get lower insurance policy if their investments fail or only produce a small profit.