In life, you will definitely face various risks that threaten yourself, so it is important to know the benefits and types of self-protection insurance. So that these risks can be minimized, especially those related to finances.
Moreover, the risk of death has an impact on family finances after the family's breadwinner dies. So preparing finances early is a wise step.
Buy products life insurance is one way to manage finances by purchasing life insurance products. This is very important for the head and immediate family members to understand.
A Glance at Life Insurance
One thing that definitely happens is death. That's why there must be financial planning after being left by the breadwinner of the family. Moreover, leaving the family because of death can disrupt the family's finances.
Because it is absolutely certain that the finances must be planned well. Just as death is certain, family finances decline after the death of the head of the family is certain. All of that can no longer be denied.
Therefore, it is important to plan financially before risks occur in order to minimize the risk of financial difficulties after the death of the head of the family. For example, by using self-protection protection for financial planning when facing this risk.
Now financial institutions and institutions are issuing protection products. Especially self-protection protection because it can protect customers' finances.
Policy recipients are protected by the company that issued the policy, provided that the participant or insurance customer pays the premium on time. Usually you have to pay a premium every month.
The amount of insurance money issued by the insurance company depends on the amount of premium paid in that period. Apart from that, the amount of insurance money also depends on the tenor or length of the insurance term.
Each life insurance product issued by an insurance company sets different rules regarding this matter. So the insured must really understand it. Moreover, regarding the amount of insurance money received by insurance participants later.
It is important for the insured to understand that life insurance claims cannot be made in the first years, from the time the insured decides to purchase a life insurance product. Make sure you understand these rules as well as possible.
Types of Personal Protection Insurance: Understand and Pay Attention
Even though it is important, many people are confused about choosing the right product. Moreover, now many new financial institutions are releasing similar products.
So you have to be really careful in choosing this service provider. Because quite a few customers have disagreements between this service provider and their customers, due to not understanding the protection product.
Many people don't understand this, so they have different assumptions about this protection service provider. There are even those who are afraid of taking out insurance. The following are the types of personal protection products that you should know about, namely:
- Term Life Insurance (Self Protection Futures)
This type of personal protection is valid for the time the insured chooses to pay the premium. For example 5 years, 10 years. When choosing this time, you are required to pay a premium.
This insurance benefit can be obtained if the policy holder experiences the following conditions:
- Died while paying premiums. For example, choose 5 year term life insurance. Insurance claims can be made if you die in the third year and beyond.
- The validity period of an insurance policy is still valid when the policy holder dies. For example, if you choose term insurance for a period of 5 years and have paid it off within 4 years, you can still claim insurance in the 5th year because the policy is still valid. - Whole Life Insurance(Self Protection for Life)
Another type of personal protection product, namely lifelong self-protection products. Because it is valid for life and insurance claims can be made after death.
The characteristic of this personal protection product is that it provides lifetime coverage to the policy holder. As long as the policy period is still valid. Apart from that, it has a savings element. So you can pass on your savings to your heirs. - Endowment Insurance (Dual Purpose Self Protection)
This type of endowment insurance will provide life insurance benefits as long as the insured lives or dies, as long as the policy is still valid.
Apart from that, the protection service provider issuing this product will pay the insurance money at the maturity date agreed between the insurance company and the customer if they are still alive. - Unit Link Insurance (Unit Link Self Protection)
The next type of insurance is unit link insurance, which combines the benefits of insurance and investment. So the premium paid is considered an investment.
This type of self-protection is very popular in Indonesia because it is considered profitable. The money paid as premiums can be recovered as savings.
Tips for Choosing Personal Protection Products
As mentioned previously, we can get many benefits if we take out life insurance. However, the large number of insurance companies currently makes us confused about choosing the right insurance company.
Moreover, quite a few 'naughty' personal protection product companies make off with their participants' premium money. This makes potential customers even more afraid and hesitant to buy the product.
Don't worry, as long as you choose the right company you can choose the best life insurance product. Therefore, get to know the following tips for choosing a company providing these services:
- Trusted
Choose an insurance company based on its CSR value. Make sure the company has a CSR value of 95%. Because the company is trusted in serving its customers' claims.
CSR values areClaim Settlement Ratiothat is, the percentage of claims completed by the company is balanced with the number of claims submitted. - Understand Personal Protection Products
When you want to buy this protection product, choose a competent company by looking at their profile and reviews from various platforms. Also make sure that the OJK monitors its activities
The products offered must also comply with OJK rules. So that there is no confusion later.
We get many benefits if we buy self-protection from an early age. So that the family gets insurance money after the head of the family dies. So that your daily needs are met, that's why you have to know the benefits and types of self-protection products.
