Insurance has been proven to help many people in protecting according to the benefits and types of products. Even so, there are still few people who know about the existence and meaning of life insurance. This is evidenced by research conducted by the Indonesian Life Insurance Association (AAJI) in 2019, where the penetration rate of life insurance in Indonesia is only 1.2 percent. The benefits of life insurance are no less important, you know. Want to know more details? Come on, take a look at this article! 

Definition of Life Insurance and the Difference with Health

Insurance Life insurance is an insurance protection product that is provided for the risk of death affecting the policyholder's family. This insurance product allows family members left behind to get financial guarantees that are useful for survival in the future. In addition to death, this insurance also protects against the risk of partial or total disability.

For example, a father who is the head of the family has an accident and dies. This has the potential to make his family members slumped because they have lost their only financial source. However, before he died, he was registered as a life insurance policyholder. As a result, family members are financially guaranteed thanks to life insurance, namely the sum assured.

Then, what is the difference between life insurance and health insurance in general?

The difference lies in the benefits offered. This is because life insurance provides guaranteed benefits for heirs or family members who are financially affected by the death of the head of the family. Meanwhile, health insurance is beneficial for themselves (policyholders) and family members as a form of protection from illness and hospital care costs.

This relates to the insurance claim process which is different between life insurance and health insurance. Where for life insurance, the one who makes the claim is the heir by submitting the related documents to the insurance company. Meanwhile, for health insurance, policyholders can directly make claims according to the agreed system.

Types of Life Insurance in General

Well, here are the types of life insurance in general, namely:

1. Term Life Insurance

As the name implies, this type of life insurance has a period of protection that has previously been mutually agreed upon by the policyholder and the insurance company. The period also varies, it can be 5, 10, up to 15 years. Premiums are usually paid in advance by the Policyholder and are made annually according to the agreement.

When the policy is inactive or lapses, the benefits provided by insurance will stop as well as the premiums that will be forfeited. An example of this type of insurance that is widely chosen is credit life insurance, where protection will be carried out during the credit period. If the policyholder dies, the insurance company will pay off the remaining credit to the debtor.

2. Whole Life Insurance

Furthermore, type of whole life insurance is a type of life insurance that protects until the policyholder is generally 99-100 years old. The premium that must be paid by the policyholder is of a fixed value or does not increase with age, in other words, it is a savings account.

If the policy is not active until the policyholder dies, the policyholder can still get the promised cash value. The cash value is reduced by the cost of closing the policy as well as premium payments that are in arrears (if any) on the whole life insurance owned.

3. Dwiguna Life Insurance

Meanwhile, dual-purpose life insurance has a dual function, which functions as life protection as well as savings. So, this type of insurance will provide protection as long as the Policyholder is still alive until the due date, or dies before the maturity date.

Dual-purpose life insurance is also considered to be able to provide a faster cash value because usually, the cash value of dual-purpose life insurance is equivalent to the sum assured on the maturity date. Thus, policyholders do not have to wait until they are 99-100 years old.

4. Unit Link Life Insurance

life insurance unit-linked. This type of life insurance is not much different from whole life insurance where the policyholder can get back the sum assured as well as an increase. life insurance policyholders unit-linked will also get additional investment returns.

Benefits of Having Life

Insurance certainly brings many benefits to policyholders, including life insurance. Here are some benefits when you have life insurance, namely: 

1. Protection from the Risk of Death

The main benefit is of course getting protection from the risk of death. For example, ahead of the family dies which makes the family lose their source of income. If the head of the family has life insurance, the insurance company will provide the sum assured according to the policy provisions to the family.

2. Protection from Partial or Total Disability Risk

Not only death, but life insurance also protects from the risk of partial or total disability. Later, the insurance company will provide compensation in the form of a sum assured with the amount previously agreed on in the policy. Then, the insurance will end if the Policyholder suffers permanent disability due to an accident.

3. Life Insurance of Heirs

In addition to protection, life insurance also guarantees the survival of the family or heirs when the head of the family has lost his job or died. So, family members will be given financial support for a more protected future, including education.

4. Assisting in Financial Management

By having life insurance, another perceived benefit is being helped in managing finances. This is because the Policy Holder is obliged to pay the premium, where the payment is used as financial protection in times of emergency or decline.

The sum insured provided by the insurance company can also be used to meet the educational needs of children in the future. In addition, if the policyholder uses dual-purpose life insurance or unit link, the policyholder can accumulate investment funds as savings, such as for retirement preparation. 

5. Creating

of calm and security The last benefit of having life insurance is the creation of a sense of calm and security. How come? Policyholders no longer need to worry about emergencies that can affect their financial condition, such as serious illness or even death. This is because there are additional benefits such as guaranteed hospitalization and protection against critical illnesses.

After understanding the meaning of life insurance and its types and benefits, it's time to protect yourself and your family with BNI Life Plan Multi-Protection! With a minimum premium of IDR 200,000.00 per month, you can get 100% of the sum insured along with protection from 117 critical illnesses and guarantees for hospitalization and surgery.

Come on, immediately get extra protection for a bright family future with insurance from BNI Life Plan Multi-Protection!