How many of you who have never heard or read about the link unit? We have had very many articles, books, seminars, and even training on unit-linked insurance, but strangely not much I encountered media specifically explain the traditional insurance. On this occasion I will explain a little about the traditional insurance, and who knows could help ease tensions between unit-linked and traditional.
Individual traditional life insurance (which I briefly became AT to simplify writing) can generally be divided into three, namely: futures, life (whole life), and dual-purpose (endowment). Their main difference lies in the period of validity of the policy and the payment term benefits. This difference will impact on the amount of the premium and the results we can.
We start from the AT futures (abbreviated ATB). As the name suggests, this ATB has a fixed term of the policy and is predetermined. Usually the period of time provided by the insurance company varies between 1-20 years. This policy will provide some insurance money to the heirs in the event risk on the insured dies before the policy matures. A simple example, if Pak Budi buy ATB futures for 20 years, then if 15 years later he died of his family are entitled to insurance money ATB. This kind of insurance premiums has the most inexpensive among other types of insurance, but ATB would not give anything if the insured is still alive when the policy matures. So suppose that Mr Blake died 21 years later, then the child will not get a dime from ATB. That is why in this insurance there is the term "cash burn".
"Well, that's a loss dong to buy insurance if you can not get a what-what?"
Relax, you do not need to be disappointed because the insurance companies are also thinking the same thing, and they've found a solution that is a life insurance that will give you a lifetime of protection so that the premiums you will not "burn". This is what we know as life insurance (or we briefly with ASH). The actual term of the policy is not a lifetime, but typically up to us aged 99 or 100 years. But since the average human life expectancy was not up to the age that is to say a lifetime. Even if there were past the age of 100, generally ASH will give the money from the cash value which amount approximately equal life insurance money. This kind of insurance premiums are usually higher than ATB and payment periods also vary from the single premium, the premium paid for life, and the premiums paid up to a certain time period.
You are then asked again, "Why still lose dong!" Why? "Yes lah, who enjoy the heir me. I also want to enjoy the result dong, I'll pay the premiums. "
Wah ... wah ... apparently you are hard to please ya. Take it as a life insurance company already has a new product that is a life insurance endowment (which we will briefly become AD). What's the difference with ATB and ASH? If at ATB and at ASH, the sum insured is only obtained when the insured is dead (or past the age of 99 or 100 if in ASH), then in AD insured will get a certain amount of money in periods that have been agreed and insurance money will also go down to heir if the insured dies. For example, Mr. Budi buy AD for 50 years with the sum of Rp 100 million and agreed to get $ 10 million in the year-to-10 and US $ 20 million in its 20th year. So Mr Blake will get a total of USD 30 million in year 30, and suppose that he died in the year 31, then the family will get Rp. 100 million. Judging from the amount of the premiums, AD has the most expensive premiums than other types of insurance. But these premiums are reasonable when considering the amount of protection and the promise of the payment amount offered.
"Sir, I am still not satisfied," you say. "Why?" I asked back. "Yes, I am not satisfied. I already pay period costly but just it can much alone. "" Indeed wants his you can how much? "" I wants money I get a more big and the numbers could at least keep pace with inflation. Taking into account inflation was important too, sir. I've the same was told my financial planners that always take into account inflation. But if I wanted her to do expensive insurance premiums costly again yes, sir. "
Weleh ... weleh ... you it wants many yes. Fortunately asked her now. Try if you asked her 20 years ago, I certainly can not answer. Because apart from the time I was a kid (just entered junior high school), in Indonesia as well not exist "technology" for insurance that is sophisticated enough to answer your question. Fortunately now been found a sophisticated called unit-linked insurance (or abbreviated UL).
UL actual structure similar to AD, but we as the customer has the right to choose where our funds will be invested. Generally, we can choose a combination of investments among stocks, bonds, and money markets. Because all three instruments are capital market instruments, the risk of investing in the stock market is also borne by customers UL. The choice of this type of investment we will be administered by an insurance company through its investment manager. The investment manager works much like an investment manager who issued mutual fund products. Perhaps because of this reason also UL touted as a combination of traditional insurance with a mutual fund.
When viewed in terms of the amount of premium, UL typically have more expensive premiums than ATB and ASH. Perhaps almost comparable to AD, but the amount of the premium is still considered to be reasonable because we can get much more than what we paid (if we choose the right type of investment instrument).
By the way, because I have also been called UL = AT + mutual funds, according to a good friend where the heck of us bought the AT + UL or buy mutual funds? I do not love the answer here, but I would love the analogy like this: you buy a computer? When you want to buy a computer, where you do: Buy spare-parts one by one, or you come to the computer store and say, "I need a computer for typing, print, email, surf the same. You there is not a computer like that? "
I think the answer will depend on ourselves each. For myself, I would choose the parts individually and then my own raft at home. I do it because I have a pretty good IT background. But let me tell my parents to do the same. It could be used as a cutting board its motherboard continue VGA card is used as a wedge the door because they do not know how to assemble a computer. Even if I teach them step-by-step how to assemble a computer, might I were in scolded and accused of deliberately want toying with parents.
So in conclusion, traditional life insurance and unit-linked are generally something like it. To understand how the unit-linked insurance work, we also need to understand how traditional insurance works. Each of them has its uniqueness and advantages and disadvantages of each that will only be good if it suits our needs. Financial planning (including insurance plan) as we put together a puzzle. Each section there are portions and place each. No parts that can be placed in any position everywhere. Each of these parts can only be placed in a unique position. And because each of us has a "puzzle board" is different then the parts of the puzzle we have not necessarily fit in "puzzle board" others.
That was the end of my words in this article. Just why that article without practical tips it does not fit ya. Then these tips from me: if you want to have life insurance for a certain period of time or want additional life insurance at reasonable cost, then consider term insurance. But if you want life insurance for a longer period of time then consider whole life insurance. Then if you want to get something more than your insurance that are guaranteed and do not mind paying a bit more expensive, then consider endowment insurance. Or if you want to get something bigger than endowment insurance and want to participate in control of how your money is used and can accept the potential loss of the investment risk, so consider unit-linked insurance.
0 Response to "Evolution of Life Insurance Products from year to year"
Post a Comment