Traditional insuranceUnderstanding Life Insurance Policy (Life Insurance Policy) by definition of LOMA (Life Office Management Association) is:"Polis Life Insurance (Life Insurance Policy) is a policy in the policy where the insurance company promises to pay benefits upon the death of the insured / insured."Traditional insurance also has various types, each of which will be explained as follows:
1. Term life insurance (term)Term insurance provides protection only in 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 a premium cheapest among other insurances. Money can be insured, reaching billions with a premium that is not too draining the contents of the bag. Types of term life insurance has no cash value. If at the expiration of the insurance contract the insured is still hale and hearty, the contract expires and no money is given to the insured.
2. Insurance whole life (lifelong)This insurance contains the value of savings. The period of protection is no longer, up to 99 years. This insurance is called a refinement of term life insurance which has no cash value. But the value of the premium to be paid customers are also more expensive than term life insurance.On the whole life insurance, when the contract expires and the insured is still in good health, no cash value provided to customers. The cash value of whole life policy can be used as collateral for loans and no bonus dividends of the company for a whole life policy holders. Moreover, if it can not pay the premium, the policyholder can take the cash value of these funds. This feature does not exist on the type of term life insurance.
3. Insurance endowment (endowment)The third type is the endowment traditional insurance. This type of term insurance is as well as savings. Diverse forms of endowment insurance. In addition to having a cash value, there are also funds expended in futures before the insurance contract expires. These funds come out periodically eg 3 years or 5 years.For example, as insurance education who are spending when the child was 5 years old for kindergarten entrance fee, 7 years old to enter elementary school fees and so on. Unfortunately, endowment insurance premiums are much more expensive than term insurance premiums as well as whole life.Non-traditional insuranceNon-traditional types of insurance is only one link unit. In addition to functioning as a protection, it also serves as an investment. The premiums paid in part be used to pay for protection and partly placed in mutual funds in the form of unit-linked.Policyholders will be asked to choose where to put their investments, whether in equity funds, balanced funds, fixed income funds, or money market.For the type of unit link insurance is quite complicated and more difficult to grasp. So that prospective customers need to really pay attention and further research.
Source: http://asuransiaja.blogspot.co.id
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