At this time has developed various types of insurance in the community, in risk management, insurance allows the sharing and transfer of risk, this is the best way to compensate. Most people do not understand the fundamental differences in the type of insurance, but to determine the most suitable insurance program needs, we need to know the kinds of insurance.
Insurance is divided into two main types
1. Traditional Insurance
2. Non-Traditional Insurance (modern)
In the Traditional Insurance, divided into several types of insurance, insurance usually has long been used by consumers.
Traditional insurance consists of:
1. TERM
2. Wholelife
3. Endowment
explanation TERM
- You never know about Motor Car Insurance? Or maybe health insurance? Now type of term insurance is usually purchased by many people, because of low premium payment and get great benefits. In other words, pay less, failure lot, but if it is not used in insurance claims and does not occur, then the money we deposited will be forfeited. From that fact, we can see, no savings element in this type of insurance, so call us buy our security assurance within one year or a certain period. We pay the same as travel insurance, when going on a plane billed amount of money, 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 the age of the insured.
Wholelife
- Wholelife, means a lifetime. This type of insurance protects the insured until the end of the age, usually covered up to age 99 years. And great! premium payment period is determined from the beginning, there can be no extension of the premium payment period. If selected 5 years, so five years of pay, then lifetime will not be billed again, whenever we died, we can still claim the sum assured we have planned. Because the system is saving money, then started the second year of the policy cash value is formed, in particular the savings can be taken up to 80%. Cool ga? Besides protection still go on, there are also savings, but cash value is not much compared to the value PROTECTION.
Endowment
- Endowment, this is a 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 In certain years the savings can be withdrawn in accordance with the program.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 insurance education insurance or pension fund. Education insurance determined when the money could be taken for school fees dear. The Endowment system, which is a bonus savings life insurance, 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 completion of the contract. Usually the premium offered far greater than any kind of TERM and Wholelife.
Okay, we'll talk a little about the Non-Traditional Insurance
Non-traditional insurance or so-called modern insurance, is insurance with type 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. Life insurance is mated with the investment, is kind TERM. Remember! TERM if it is a short-term insurance, and insurance costs could rise with age.
UNIT LINK = TERM + Investment
Most people take the unit links because they want to save the result is many-fold, compared to having to save money in the bank, with not much interest. By investing or MUTUAL FUNDS, then the money we invest will grow prolifically. But it must be remembered, the greater the profit, the greater the risk.
Investment can be increased and decreased, according to the economic development of the nation at that time. In times of crisis, it is certain that the value of the investment that we have dropped dramatically, and consequently the value of our savings will be depleted. If so, do not protest dong .. was not it pingin gain a lot, means must bear the loss too .. :)
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, can not promise cash value obtained in X. Another case of traditional insurance, in the policy clearly stated cash value guaranteed and obtained in X.
Due to the absence of guaranteed cash value, probably in the 11th or so, the insured must pay the premiums returned, though promised to pay only 10 years, in fact, is not listed in the policy premium payment period, so that the premium can be charged back anytime.
Unit Link, bear the cost of life insurance is the type of TERM, then each year the costs will go up with age, and the cash value that is formed will cut insurance costs and other administrative costs.
