This time we will specifically discuss about life insurance. Do you already know what life insurance is? Life insurance is an agreement contract between you as the policyholder or the insured with the insurance company as the insurer in which the insurance company will pay a nominal amount of money in case of death risk to the insured policyholder. You as the insured must pay a premium that will be useful to provide reimbursement for the risk of your death. In other words, this insurance is a type of insurance that aims to bear people against unexpected financial losses, caused by the death of the insured. This insurance may be purchased for self-interest and on behalf of the insured only or purchased for the benefit of a third person. For example a husband can buy the insurance with the wife as the insured, or parents can also buy this insurance with their children as the insured. There are several types of insurance, but before discussing about these types, you should know in advance some of the reasons that make it is so important to you. There are several types of this insurance products that each of course has different benefits. These types aims to serve the various needs, abilities, and purchasing power. Here below you will find out more information about types of life insurance:
1. Term Life Insurance
Term life insurance is a program that its function to provide protection to the insured within a certain period of time only. It usually offers a contract for 5, 10, or 20 years, with a fixed premium and cheap count. You are recommended to choose this type if you are prioritizing your family's future, especially children's education. Suitable for those of you who have a need for a large insurance costs but have limited financial ability.
If you choose this program, some of the benefits are:
You as a policyholder get the freedom to determine the amount of premium in accordance with your ability. Sum assured that you can get as policyholder can reach billions of dollars. That is, if the insured dies while the contract is still active, then the insured family will get a considerable sum assured.
Meanwhile the shortcomings of this type are:
The insured can lose the paid premium money or the charred premium once the contract is completed if it does not experience health problems or dies until the contract period is over.
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2. Whole Life Insurance
This type of lifetime insurance provides lifelong protection, although insurance companies usually limit the benefits of protection to only 100 years. It is recommended for those who do not have any dependents and want the benefits that are more than just a death benefit, or you are interested in the idea of long-term savings. So if you want life protection as well as savings for emergency needs such as paying hospital bills, you may consider buying this type of life insurance policy.
The benefits of this type of life insurance are:
The policyholder is possible to get the cash value of the paid premium. If you as the insured does not pay off the regular premium, you can use the cash value of the premiums already paid to pay further premiums. The insurance premium you have paid will not be forfeited if there is no claim. When the contract expires, the sum insured will be given entirely.
While the shortcomings are:
The premium is bigger than the term life insurance premium, even more than twice as much. The reason for this is a high premium for the life expectancy of Indonesian people is only 65 years for men and 70 years for women, so the possibility of an insurance claim before the period of protection ended higher.
From the text above you already know the types of life insurance. Now you can choose what insurance is more suitable for you or your family. Good luck!
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