Life Insurance, Term Or Choose Futures Lifetime?
Saturday, July 05, 2014
Life Insurance is one insurance product that is very important to most members of the public. The main purpose of life insurance is to provide cash compensation money / cash after the death of the participant's life insurance.
The funds are used to replace lost income because of the death. Getting funds or cash death benefit would have been important, because it can be used to help support the family, household needs as well as sending children to school to finish college and pay the mortgage Ownership Credit (KPR) post widowed owner of a life insurance policy. Compensation is later received from life insurance are also not subject to tax, aka not taxed.
There are usually four parties involved in the process of a life insurance:
- Applicant (applicant): People who apply for a life insurance. If the insurance is approved, the applicant will change its status to a policyholder.
- Policy holder (policy owner): People who have been approved as an insurance company policyholders.
- Insured (insured): A person whose soul is passed or discover insurance.
- Recipients of the sum insured (beneficiary): The person or persons designated by the policyholder to receive the sum assured.
The four parties shall have the same needs, which should have a need for insurance (insurable interest).
More specifically, there are two types of variations of life insurance:
More specifically, there are two types of variations of life insurance:
Life Insurance / Permanent / Whole Life
This insurance provides coverage premium payment amount to the value of the premium is fixed throughout the life of the insured. The main characteristic of whole life insurance is the accumulation of funds or the amount of cash a few years after the period of insurance. It may occur because of the presence of part of the premium which is managed by the insurance company, part of the premium invested or bonuses from the profits of insurance companies.
Regarding fund management scheme for life insurance will vary depending on the type of insurance. Unlike term insurance, whole life insurance it does not have a protection period. However, most insurers will stop when you reach the age of 99 or 100 years.
Some characteristic of this type of insurance is:
This insurance provides coverage premium payment amount to the value of the premium is fixed throughout the life of the insured. The main characteristic of whole life insurance is the accumulation of funds or the amount of cash a few years after the period of insurance. It may occur because of the presence of part of the premium which is managed by the insurance company, part of the premium invested or bonuses from the profits of insurance companies.
Regarding fund management scheme for life insurance will vary depending on the type of insurance. Unlike term insurance, whole life insurance it does not have a protection period. However, most insurers will stop when you reach the age of 99 or 100 years.
Some characteristic of this type of insurance is:
- Policy can be canceled (surrender) at any time. If the policy is canceled in the early years of the purchase of the policy, the cash value of the collected yet seems significant. The longer the policy is purchased, the longer the premium payments, and as a result is the higher the cash value that can be obtained. Currently the latest Indonesian Government rules require the cash value is formed in the first year. This is the reason why the premium price increases.
- If for some reason the client is unable to pay a premium, but still want to maintain the insurance policy, the insurance cash value can be used to pay a premium in order to remain able to continue the insurance policy.
- The cash value accumulated in the general insurance can be availed even borrowed. You are allowed to borrow funds from a life insurance company by using the cash value of the insurance policy owned by the same company as collateral. Loans will be free of charge, including interest costs. And if the loan is not repaid in the event of death, death benefits will be cut off by the cost of the loan before it is paid to the beneficiaries.
Insurance Futures
Term insurance is insurance that provides death protection at a certain period. This insurance has particularly no cash value or savings. The sum assured or the death benefit will be paid at the time in question or the insured dies during the term of the insurance is still valid.
Relative premium rate numbers are the same ranges in each year for a certain period and will increase after the policy period runs out, the policy shifted to other forms of insurance or refurbished. Term insurance premiums are usually much less expensive, because insurance will provide reimbursement or insurance money only in case of death. Term insurance is suitable for those who are interested only in the protection of death, for young people who require a large number of insurance with premiums as small as possible and for those who want insurance at a certain time.
Term insurance is insurance that provides death protection at a certain period. This insurance has particularly no cash value or savings. The sum assured or the death benefit will be paid at the time in question or the insured dies during the term of the insurance is still valid.
Relative premium rate numbers are the same ranges in each year for a certain period and will increase after the policy period runs out, the policy shifted to other forms of insurance or refurbished. Term insurance premiums are usually much less expensive, because insurance will provide reimbursement or insurance money only in case of death. Term insurance is suitable for those who are interested only in the protection of death, for young people who require a large number of insurance with premiums as small as possible and for those who want insurance at a certain time.