Recognize and Choose The Right Insurance For You
Recognize and Choose The Right Insurance For You
Definition of Life Insurance
Life insurance is the definition of a transfer of risk (Risk Shifting) for financial loss (financial loss) by the Insured to the Insurer. Risk bestowed by the Insured to the Insurer is not risk the loss of one’s soul, but a financial loss as a result of the loss of one’s soul or because of old age that no longer productive. Recognize and Choose The Right Insurance For You
The concept of risk
The economic value of the life of a head of household (the breadwinner) is equal to earnings capacity. If the economic value of the life of a family head is missing or corrupt, then who will suffer direct loss are his relatives. Risk of loss of income is to be borne by the family of the deceased.
To reduce these risks in modern times has taken one way to assign or delegate the risk to another party, in this case the Insurance Institute which specializes in the art business as a profession. The delegation of the more popular risk referred to “buy a life insurance policy”.
Types of risk to insured
Throughout life people are always faced with the possibility of events that can lead to lost or reduced economic value. This resulted in harm to themselves and their families or other interested person. In other words, humans have always faced the events that would lead to the following risks;
(1) Dead (death) either natural (natural death) and died at a young age due to illness, accident (accidental death) and others.
Each person would have died, although it is uncertain when it will happen. Breadwinner’s death will result in loss of revenue for an interest. Therefore we need a financial guarantee in a given time period during which left not able to adjust to new conditions.
(2) Disability agencies (disability) due to illness or accident.
As a result of illness or accident, a person is physically or mentally unable to work while thus affecting income. Whereas if a person suffers total and permanent disability, they can not work at all.
(3) Critical Illness
Critical illness can come at any time regardless of age, whether a person is young or old. Critical illness is not known when the arrival and can not be known with certainty.
(4) Old age (old age) / Pension
Old days of events will inevitably occur, but how long it lasts the life of the old days, can not be known with certainty.
The development of the education the longer the better. The cost of a child who will continue the longer education even more expensive. Parents should be able to anticipate the development of education very seriously, because the cost of education today and ten years would have been much different enhancement. Recognize and Choose The Right Insurance For You
The types of life insurance policies
Of various types of life insurance available today, there are basically three types of life insurance;
1. Term life insurance (Term Insurance)
A life insurance contract where the insurance money is paid only if death occurs within the period of valid insurance coverage. Term Insurance is the simplest form of insurance and the elderly. Type of insurance is sometimes referred to as temporary insurance, according to insurance. Amount of the insurance premium is also the cheapest compared to life insurance and life insurance Dwiguna.
2. Life Insurance (Whole Life Insurance)
Life for life insurance is designed to provide lifelong protection as long as he keep insured the policy remains active with her policy through premium payments. In addition to death protection, in the policy also provides a savings element, known as cash value arising from a fixed premium.
3. Life Insurance Dwiguna
Insurance consists of two elements, namely protection of life and savings. Mental Protection provides death protection. Savings element in insurance is higher and so is suitable for the purpose of saving. With a savings element fund higher than the Insurance Term Life Insurance and Life long
4. Life Insurance Unitlink
In addition to the above three types of policies also called traditional policy, the life insurance business insurance policy also known as Unitlink. Unitlink life insurance policy combines insurance with investment fund component. This policy provides life insurance policyholder protection as well as the opportunity to participate in managed investments by insurance companies. Funds placed in the product is cut to insurance coverage and the rest is invested in units of the fund concerned.
The purpose of this policy is to invest. By linking the investment policy unitlink with the performance of a fund, the policyholder has the potential to earn higher investment returns than traditional policies. Investment risk entirely the responsibility of the policyholder and the possibility of policy values may fall. So, even though the potentially greater investment policy, the policy traditional, investment risks are also great.
The types of products Unitlink
1. Single Premium
For single premium, the premium is paid once (lump sum) and used to buy units of a fund.
2. Periodic premium or Regular premium
For this type of premium paid periodically or regularly. Unit
purchased so the premium is received.