Types Of Insurance

Broadly speaking , in Indonesia, the two (2 ) types of insurance , the insurance is traditional and non- traditional insurance . Let us refer to the discussion continued.


Traditional insurance
Definition of Life Insurance Policies ( Life Insurance Policy) by definition of LOMA ( Life Office Management Association ) is :
" Policy Life Insurance ( Life Insurance Policy) is a policy in the policy where the insurer promises to pay benefits for the death of the insured person / insured . "
Traditional insurance also has a variety of types, each of which will be explained as follows :
1 . Term life insurance ( term )
Term insurance provides protection only within a limited period only . Protection can be as short plane ride from Jakarta to Semarang for less than two hours or as long as 20 years .Typically, there is a time limit of insurance protection . In addition , if there is no risk , the insurance money is not returned or forfeited .
This type of insurance has the cheapest premiums among other insurers . The coverage can be a big money , billions of premiums that are not too breaking the bank . Type of term life insurance has no cash value . If at the expiration of insurance contract the insured is still hale and hearty , the contract expires and no money is given to the insured .

2 . Insurance whole life (whole life )
This insurance contains the value of savings . The period of protection any longer , up to 99 years . This insurance is called a refinement of term life insurance that has no cash value . However, the value of premiums that must be paid customer is also more expensive than term life insurance .
In whole life insurance , when the contract expires and the insured is still hale and hearty , no cash value provided to customers . The cash value of whole life policy can be used as collateral for loans , and there is a bonus dividend of the company for the whole life policy holders . Moreover , if it can not pay the premium , the policyholder may withdraw funds from the cash value . This feature does not exist on the type of term life insurance .

3 . Endowment insurance ( endowment )
The third type is the traditional endowment insurance . This type is like term insurance as well as savings . Diverse forms of endowment insurance . In addition to cash value , there are also funds expended prior to the insurance contract term expires . These funds come out periodically , for example every 3 years or 5 years.
For example, such issued insurance fund education when the child was 5 years old for kindergarten entrance fee , 7 years of primary school entry fees and so on . Unfortunately , this endowment insurance premiums are much more expensive than term insurance premiums as well as whole life .

Non- traditional insurance
Non-traditional type of insurance is only one link unit . In addition to functioning as a protection , it also serves as an investment . The premiums paid partly used to pay for protection and partly placed in the units of mutual funds in the form of links .
Policyholders will be asked to choose where to put their investments , whether in equity funds , balanced mutual fund , fixed income fund , or money market .
For the type of unit-linked insurance is quite complicated and more difficult to understand .So that prospective customers have to really pay attention and investigate further .