Types Of Insurance
Generally, Indonesia, two (2) types of insurance, the insurance is traditional
insurance and non-traditional. Let us refer to further discussion.
Traditional insurance
Definition of life
insurance (life insurance policy) policies by definition LOMA (Life Office
Management Association) is:
"Life insurance policy (life insurance) is a policy in
the policy where the insurer agrees to pay benefits for the death of the
insured / insured."
Traditional insurance also has a variety of types, each of
which will be explained as follows:
1. Life insurance (long-term)
Term insurance provides protection in a limited time. Protection
can be as short trip tickets between Jakarta and Semarang for less than two
hours or as long as 20 years. Typically, there is a period of insurance
coverage. In addition, if there is no risk, the insurance money is not returned
or canceled.
This type of insurance is the cheapest among the other
insurance premiums. The cover can be a lot of money, billions of premiums are
not too breaking the bank. Type of term life insurance has no cash value. If,
on the expiry of always healthy insurance contract the insured, unless the
contract expires and no money is given to the insured.
2. Any life insurance (whole life)
This insurance contains the value of savings. The protection
period longer, up to 99 years. This insurance is called a refinement of term life
insurance that has no cash value. However, the value of premiums that must be
paid to the customer is also more expensive than term life insurance.
In whole life
insurance when the contract expires and the insured is still alive, no cash
value provided to customers. The redemption value of the whole life policy can
be used as collateral for loans, and there is a bonus dividend of the Company
for all policyholders of life. Also, if she can not pay the premium, the
insured can withdraw funds from the cash value. This function does not exist on
the type of term life insurance.
3. Endowment insurance (staffing)
The third type is the traditional endowment insurance. This
guy is like a long-term insurance and savings. The diversity of forms of
endowment insurance. In addition to the cash value, there are also funds
expended prior to the expiration of the term of the insurance contract. These
funds periodically, eg every 3 or 5 years.
For example, as Education issued the insurance fund when the
child was 5 years for kindergarten entry fee, 7 years of fees in primary school
and so on. Unfortunately, this endowment insurance premiums are much more
expensive than insurance premiums in the long term and whole life.
Non-traditional
insurance
Non-traditional type of insurance is only one link unit. In
addition to functioning as a protection, it also serves as an investment.
Premiums paid partly used to finance the protection and partly placed in units
of mutual funds in the form of links.
The insured will be asked to choose where to place their
investments, whether in equity funds, balanced mutual fund investment funds
fixed income or money market.
For the type of unit-linked insurance is quite complicated
and difficult to understand. While potential customers should really pay
attention and deepen.
Keyword: types Insurance, insurance
tradisinal, insurance non-tradional.