Plus Minus Insurance Soul Unit Link
In the last few years life insurance companies are
aggressively marketing unit link insurance products. But many of us do not
fully understand what unit link insurance is and how it works. So when people
have already bought this type of insurance often experience disappointment when
knowing the cash balance is not in accordance with the illustrations made by
insurance agents at the time of product offerings.
Of course the seller whose name strives to highlight the
advantages of the product. In the illustration of unit linked insurance quotes,
generally the value of investments is displayed up from time to time. In that
case, every investment always carries risks. Remember: No investment without
risk, no riskless investment, whatever the form.
Unit-link life insurance is a mix between life insurance and
mutual funds. The words 'unit link' that must be really understood. Link is
related. Well, unit-linked life insurance means life insurance that is linked
with mutual funds. Mutual funds themselves are a type of investment whose
management is run by a body or institution called an investment manager. In
short, iwa insurance and mutual funds are self-running products. Whereas
unit-linked insurance is a product that connects or combines both
It is important to remember that insurance is a product
purchased. Consumer purchases are costs borne by consumers. Certainly in
accordance with the benefits gained. Uniquely, insurance provides benefits when
the insured suffered death, permanent disability or illness. And who enjoy the
benefits not the insured, but the heirs such as their wives and children.
Mutual funds are cost-laden investments. Why? Because the
money you plant is managed by someone else (investment manager). Is it free?
Obviously not, it's all cost. Then what is the advantage? You do not have to
bother to analyze interest rates on deposits, Bank Indonesia Certificates,
stock prices, and money market movements. Simply receive a report on the
development of funds invested and pay the cost. However, in my opinion, the
customer should follow to monitor the development of unit link prices.
When insurance and mutual funds run together, the cost of
both products will automatically reduce the cash value of the premium you pay.
Insurance fees and mutual fund management fees. Insurance costs consist of
several components, as well as mutual funds. Not to mention the risk of falling
interest rates and stock prices that resulted in the fall of unit links. But
great, insurance companies will keep your unit link prices up. Of course there
is no guarantee, but the company will work optimally. But most importantly,
once you have a unit link product, you are the one who must monitor the price
progress. because, you are given the right to switch or transfer investment to
the most profitable investment group.
It is important to remember that in the first 5 years, the
cost of insurance is very high, so the money in the cash balance is only a
mutual fund or unit link which has also reduced the unit link costs as well.
For example, a premium of 200,000 plus units lnik 100.000. 80,000 cash balance
remaining. Why? Because you buy insurance and pay unit link investment costs .
If within two years there are customers who are 'exhausted' paying unit link
premium insurance, then the cash value will be deducted to pay insurance
premiums. Well, this is where many customers protest, why "their money is
lost".
