Types of Insurance

New types of insurance or a variety of insurance products currently being circulated in Indonesian society. Various types of insurance in the community began to grow, in risk management, insurance allows the sharing and transfer risk, this is the best way to compensate. Most people do not understand the fundamental differences in the types of insurance, but insurance program to determine the most suitable to the needs, we should see more of the types of insurance.

Life Insurance is a promise written in the insurance policy, which is made by the insurer to the insured, to provide financial compensation if something happens to the insured.

Insurance consists of several products. Each of these types of products have different benefits in order to serve a wide range of customer needs and capabilities.
The following types of insurance under the Life Insurance Association of Indonesia (AAJI) in the official website:

1. Term life insurance (Term)
Characteristic of this lies in the maximum protection with a relatively low premiums. Therefore, this type of product attractive to prospective insured who have large insurance needs, but its purchasing power is limited.

Who fits with this policy?
• Prospective policyholders who want to protect the future of their children.
• Prospective policyholders new career.

2. Life insurance (Whole Life)
Characteristic of this insurance is a basic type of permanent life insurance provides lifetime insurance protection.

Who fits with this product?
• Prospective policyholders who want to have a soul as well as protection produce a savings fund that can be used for emergency needs.
• Prospective policyholders who need permanent income protection (hospital bill).
• Prospective policyholders who want to get some capital growth investment.

3. Endowment life insurance (Endowment)
Characteristic of this insurance is a protection that gives the amount of money insured when the insured dies within a specified period, and provide the entire sum assured if he was still alive at the end of the coverage.

Because it provides two benefits, insurance, endowment or a unit is called a link. This product is useful for prospective policyholders who want to be protected from the financial impact due to premature death.

Who fits with this product?
• Prospective policyholders who need the funds for the education of children.
• Prospective policyholders who want to have some funds for future needs.
• Prospective policyholders who want to have a pension fund.

Endowment insurance is divided into two types, namely:

a). Unit Linked Life Insurance Single (Single Premium)

Characteristic of Unit Link Insurance Single (Single Premium) is the premium paid in a lump sum or lump sum. Usually a single premium desired by prospective policyholders who want to invest long term. Who fits with this product?
• Prospective policyholders who like to invest long-term
• Prospective policyholders who have excess money (idle money) and intends to increase his wealth.

b). Regular Unit Linked Life Insurance (Regular Premium)

Characteristic of Unit Link Insurance Regular (Regular Premium) is also a long-term investment, where in the policy set the method of payment, which is done periodically or regularly. Purchased the unit so the premium is received.

Who fits this product:
• Prospective policyholders who prefer to play in the protection
• Prospective policyholders who like to play in investment but still want to be protected
• Prospective policyholders who are still working and want to set up savings.

That is a summary of information on the types of insurance or a variety of insurance products. I hope you choose the right insurance product suits your needs and your financial capabilities.

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