At this time has developed various types of insurance in society , in risk management , insurance allows sharing and transferring risk , this is the best way to compensate . Most people , do not understand the fundamental differences in the type of insurance , but insurance program to determine the most suitable to the needs , we must recognize the types of insurance .
Insurance is divided into two main types
1 . Traditional insurance
2 . Non – Traditional Insurance ( modern )
In the traditional insurance , is divided into several types of insurance , the insurer usually has long been used by consumers .
Traditional insurance consists of :
1 . TERM
2 . Wholelife
3 . Endowment
Explanation TERM
You never know about Auto Insurance or Car ? Or maybe health insurance ? Well kind of term insurance is usually purchased by many people , because the premium payment cheap and get great benefits . In other words , pay less, failure by many , but if it is not used in insurance claims and does not occur , then the money we deposited will be forfeited . Of that fact , we can see , no savings element in this type of insurance , so call us to buy our security guarantee within 1 year or a certain period . We pay the same as travel insurance , time will be billed an amount of money on a plane , after getting off the plane safely , the contract is completed . Because the premium payment period is not specified , then every year , premiums will increase with age insured .
Explanation Wholelife
Wholelife , meaningful life . This type of insurance protects the insured until the end of the age , are usually covered up to age 99 years . And great ! premium payment period is determined from the outset , there could be no extension of the period of premium payment . If elected for a 5 -year , five -year pay him yes , then life will not be billed again , whenever we passed , we can still claim the sum assured that we have planned . Because the system is saved , then started the second year of the policy cash value is created , in particular the savings can be captured at up to 80 % . Cool ga ? Besides protection still go ahead , there are also savings , but the cash value is not much compared to the value of PROTECTION .
Explanation Endowment
Endowment , this is life insurance with a value greater savings . In certain years the savings can be withdrawn in accordance with the program . Usually this type of insurance known as education insurance or pension insurance . Insurance education is determined when the money could be taken for school fees dearest . The Endowment system , life insurance savings bonus , if anything happens when saving , then we get the sum assured as death benefit , but in the event of an obligation to pay claims, insurance companies still pay the claim until the contract is completed . Usually the premium offered is much larger than the type TERM and Wholelife .
Example : JOE took 32 years for child education insurance Desi , 2 years . At the time of paying premiums , at the age of 36 years Passed away JOE . At that time Mrs.JOE get death benefits specified number of UP , and are free to pay a premium . At the age of 7 years old Desi , Desi still get scheduled educational claims , and at age 13, age 16 years , age 19 years , and so on .
Okay , now we talk a little about the Non – Traditional Insurance
Non Traditional insurance or insurance called modern , is a type of insurance with UNIT – LINK . Where the Unit Link Insurance is very popular at the moment , why ? because unit – Link is a type of insurance that combines life insurance and investments . Mated life insurance with investment , is a type TERM . Remember ! TERM if it is a short-term insurance , and insurance costs could rise with age .
UNIT + LINK = TERM Investment
Most people take a Unit Linked because they want to save the results many times , than have savings in the bank , the interest does not amount to much. By investing or MUTUAL FUND , then the money we invest will grow prolifically. But you have to remember , the greater the profit , the greater the risk .
Investment can increase and may decline , according to the economic development of the nation at that time . In times of crisis , it is certain that the value of investments that we have dropped dramatically , and consequently the value of our savings will be depleted . If so , don’t protest .. and last I want to thanks lot , means must bear the loss as well ..
It is certain , on the type of unit link insurance , do not have a cash value that is guaranteed , even the company that issued the insurance policy , the cash value can not promise that obtained in X. Another case of traditional insurance , in her policy is clearly stated and guaranteed cash values obtained in X.
Because there is no guaranteed cash value , probably in the 11th or so , the insured must pay the premiums back , even though the promised pay only 10 years old , in fact is not listed in the policy premium payment period , so that premiums can be BILLED BACK at any time .
Link Unit , bear the cost of life insurance is the type TERM , then each year the costs will go up with age , and the cash value that is formed will cut insurance costs and administrative costs others.
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