Tips for choosing the best life insurance

    This time we talk Life Insurance, what types, whilst we want it, and the way to pick out the coverage that fine fits our needs. Let's begin. Life coverage is quite simple the way it works. The factor is coverage offers coverage cash to our inheritance rights, if we die.

Tips for choosing the best life insurance

    The coverage cash might be obtained with the aid of using the heirs that we employ whilst shopping for the policy. Why will we want to have lifestyles coverage? The characteristic of lifestyles coverage isn't always to make a profit, however to lessen the monetary burden if the demise takes place unexpectedly. His call we in no way recognise age, right? We take the instance of a own circle of relatives backbone, if a person dies, the own circle of relatives is left at the back of now no longer handiest grieving, however is also bestowed with a big monetary burden. Various fees which have remained there should be paid.

    And the remaining debt must also remain. People who really need life insurance First of all, the backbone of the family. If you have dependents such as your spouse, children or family members who are dependent on us, you must obtain life insurance. The second is when you have debts or installment payments such as car loans or real estate. Only when we die will our families be left with so much debt that they cannot afford to pay it off. For this reason, creditors usually ask for life insurance when applying for a loan.

    Thirdly, life insurance has become essential if you have high-risk jobs such as pilots, soldiers, contractors, or other jobs. If you have financial goals that depend heavily on The main focus when purchasing life insurance is determining the appropriate coverage. There are several methods of calculation, but the first is calculated from the insured person's income. For example, our income is 15 million per month. Our family lives well with this income. When we die, families need time to find equal income and adjust to new lifestyles.

    A second way is to calculate the cost. It's basically the same as past earnings credits. However, it only focuses on the basic needs and expenses that a family needs. This allows you to maintain the same lifestyle until you adapt. A third option is to calculate the funds needed for a specific financial goal. For example, the cost of a child's education or the need to pay off debt. The higher the insured amount, the higher the premium you pay. Therefore, please ensure that your policy amount meets our needs and do not take out more than 10% of your income on life insurance. Let's take a look at the different types of life insurance.

    There are four types of life insurance in Indonesia, the first is term life insurance or what we call term life insurance. Term insurance is a pure form of life insurance. So when we talk about life insurance by default, it's term life insurance. Simply put, this product provides life protection for a period of time. Common choices are 5, 10, and 30 years. Term insurance is good for people who want good coverage at low premiums. Insurance companies calculate lower premiums because the coverage period is limited. In addition, this insurance provides compensation for a certain period of time only if there are dependents. For example, if we have life insurance, we have to carry our children on our backs. In 25 years our children will be grown and already working. Don't depend on us anymore. In addition to the death benefit, the product usually provides additional coverage such as permanent disability benefits, premium waivers, etc. to guarantee the repayment of the loan.

    The second type is life or whole life insurance. Whole Life products provide lifelong protection to policyholders. It's not about dying, it's about getting old. For example, 99 or 100 years. Whole life insurance premiums are certainly higher than term insurance because of the very high likelihood of being claimed. Life insurance is usually planned as a family estate. Also, unlike term life, whole life insurance has a cash value, also called a living benefit. This is a benefit that may be granted while the customer is still alive.

    The amount of cash for this type of traditional life insurance is determined at the beginning of the policy and can be paid in the middle of the policy. Customers can use this cash value for education, retirement, venture capital, and other purposes. The third is unit-linked life insurance. A unit link is an insurance product that bundles investments. The premiums we pay are managed in investment vehicles by insurance companies in the form of stocks, deposits, bonds, etc. The percentage now depends on the customer's choice. Some are used for life insurance and other insurance, and some are used for investments. The Unit-Link product is more suitable for customers who want to invest in the future and make a profit, but don't want to be bothered with the learning investment. On the other hand, customers also get protection for themselves when they die. This product is now very popular in Indonesia and some people mistakenly believe that life insurance is definitely an investment.

    In fact, perceptions and expectations can be misunderstood if they are not properly explained. Ultimately, when our expectations don't match reality, we get disappointed, we give up our insurance, and we give up our investment. In this example, I'm sure you've heard why it took so long to pay out, but why is my investment balance low? Bad things can be the cause. Remember that the value of an investment does not always increase, there is volatility itself. An example of the second case: If we die, our family can receive a small insurance benefit. why? Probably because the investment part is large at first and the insurance part is very small.

    Therefore, it is necessary to understand each person's needs before purchasing. In fact, you can get a life insurance product and a better investment product if you buy them separately. The fourth type is double life insurance or endowment insurance. Endowment insurance is a combination of insurance and savings. This means that the premium we pay him will be split in two. A portion of it is used to pay insurance premiums and the rest is saved as a fixed interest rate. Dual life insurance products are suitable for those pursuing specific long-term financial goals, such as tuition fees or a pension fund. Are all causes of death covered by life insurance? Not all, of course, but most do, and there are certain requirements for insurance claims.

    There are causes of death that can void claims and are not covered by life insurance. For example, due to suicide, extreme sports, drug overdose, HIV/AIDS, fraudulent claims, death sentences, or other illegal activities. Which insurance companies offer life insurance products? We have heard of life insurance brands such as Prudential, Allianz, Manulife, Generali, Sequislife, Sunlife and various bank life insurance such as BCA Life, BNI Life and BRI Life. there will be So many options, right? This means that as a real customer, you will benefit because you will have many options to look for benefits and prices that fit your budget.

    But you should choose an insurer that also has solid financial statements so that it doesn't affect you as in the case of default on claims like Jiwasraya. Based on government regulations, all insurers must have an RBC, or the company's ability to repay long-term debt of at least 120% or five times its debt. This affects his ability to pay. To view a complete list of life insurance options, please visit our website at lifepal.co.id. Please rest assured. We only work with trusted insurance companies with the best track record.

    How are life insurance premiums calculated? Like health insurance, life insurance premiums increase as you get older. why? The risk of dying increases with age. It is more profitable to take out life insurance while it is cheap and young. Gender and medical history now also affect life insurance premiums. If I don't claim now, will my money be forfeited? Some insurers may even offer a refund of your premium if you don't claim it by the end of the policy period.

    In general, the amount of premium reimbursement depends on the policy of the company. Some offer 50%, others more than 100% of the total premium paid. In general, the premium refund policy has a higher price. The conclusion is how to choose life insurance according to our needs? First, make sure it's true that you need life insurance right now. Secondly, is the insured amount sufficient to cover our needs? Thirdly, will it only last for a period of time or do we need a lifetime package? Make sure you buy insurance from a company with Lifepal works with dozens of insurance partners to offer hundreds of life insurance options. Visit the link below now to find and compare the best life insurance for you.

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