Insurance is divided into two main types

this time have developed various types of insurance in society, in risk management, insurance enables sharing and transfer risk, this is the best way to compensate. Most people do not understand the fundamental differences in the types of insurance, and to determine the insurance program that best matches your needs, we must recognize the types of insurance.

this time have developed various types of insurance in society, in risk management, insurance enables sharing and transfer risk, this is the best way to compensate. Most people do not understand the fundamental differences in the types of insurance, and to determine the insurance program that best matches your needs, we must recognize the types of insurance.
1. Traditional insurance
2. Non-Traditional Insurance (modern)
In the Traditional Insurance, divided several types of insurance, this insurance typically has long utilized by consumers.
Traditional insurance consists of:
1. TERM
2. Wholelife
3. Endowment
Explanation TERM
- You never know about or Motor Car Insurance? Or maybe health insurance? Now usually this term type of insurance bought by many people, because the cheaper the premium payment and get great benefits. In other words, pay less, dapatnya lot, but if it is not used in insurance claims and does not occur, then the money that we will burn setorkan. From the fact that, we can see, there is no savings element in this type of insurance, so they call us to buy our security guarantees within 1 year or a certain period. We pay the same as travel insurance, time to board the plane billed amount of money, after getting off the plane safely, the contract is complete. Because no premium payment period is determined, then every year, the premiums will increase according to age, the insured.
Explanation Wholelife
- Wholelife, meaning for life. This type of insurance protects the insured until the end of the age, usually covered up to age 99 years. And great! the premium payment period is determined from the beginning, there can be no extension of the premium payment period. If selected 5 years, it paid for five years, then life will not be billed again, whenever we die, we still can claim the Sum Insured we have planned. Because the system is saved, then started the second year cash value policy is formed, in a particular year the value of savings could be taken up to 80%. Keren ga? Besides the permanent protection on the road, there are also savings, but not much cash value than the value PROTECTION.

Explanation Endowment
- Endowment, this is the value of life insurance with greater savings. In certain years the value of savings could be withdrawn in accordance with the program. Usually this type of insurance known as an insurance education insurance or pension funds. Education insurance is determined when the money could be taken for the dear child's school fees. This Endowment system, berbonus savings life insurance, if anything happens during saving, then we get the Sum Insured for death compensation, but in the event of an obligation to pay claims, insurance companies continue to pay the claim until after the contract. Usually offered premium far greater than the type and Wholelife TERM.
Example: Budi took 32 years for child education insurance Desi, 2 years old. At the time of paying the premium, at the age of 36 years Budi Death. At that time the wife of Mr. Budi obtain death benefits, the specified number of UP, and free to pay premiums. At the age of 7 years old Daisy, Daisy still get scheduled educational claims, and at the age of 13 years, the age of 16 years, the age of 19 years, and so on.
Okay, now we talk a little about Non-Traditional Insurance
Non-traditional insurance or so-called modern insurance, is a type of insurance UNIT-LINK. Where Unit Link Insurance is very popular at the moment, why? because Unit-Link is a type of insurance that combines and Investment Insurance. Life insurance is married to investment, is the type TERM. Remember! If TERM is a short-term insurance, and insurance costs could increase as with increasing age.

UNIT LINK = TERM + Investment
Most people take the unit because he wanted to save a link to the results many times, compared to savings in the bank, with not much interest. By investing or REKSADANA, then the money we invest will increase with the fertile. But the thing to remember, the bigger the profit, the greater the risk.
Investment can be increased and decreased, according to the economic development of the nation at that time. In the event of a crisis, then the investment value can be ascertained that we have fallen dramatically, and consequently the value of our savings will be depleted. If it were so, do not protest dong .. pingin fortunately had a lot, means to bear the loss, too .. :)
Certainly, in the insurance type Link Units, do not have a guaranteed cash value, even the companies that issued such insurance policy, can not promise it brings cash value in X. Another case of traditional insurance, in her policy clearly stated the guaranteed cash value and obtained in X.

Due to the lack of a guaranteed cash value, probably in year 11 or more, the insured must pay the premiums back, though promised to pay only 10 years old, in fact is not mentioned in the policy premium payment period, so the premiums can be charged back at any time.
Unit Link, bear the cost of insurance TERM type, so each year the cost will rise with age, and formed the cash value will cut insurance costs and other administrative costs.
How does an explanation of Insurance
any questions?
Before you choose the right insurance for you, you should consult truly understand the concept of this insurance. Because each person has different characteristics in managing finances.

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