Understanding Insurance Unit Link and Sharia Insurance
We need to know that in today's many diseases that attack
humans. from Colds, cough to deadly disease though. If we just let it go then
you will find it difficult to protect your body from the risk.
Therefore the need for life insurance that can protect your
health. So if in the future you experience worsening health and should be
brought to the hospital, you do not need to think about the money to pay
because it is borne by the insurance you follow.
And after the development of the era, there are companies
that offer investment insurance Insurance services, which Insurance can double.
That is protection on yourself and on the other hand can be used as your
investment. This insurance is called UNIT Linked.
The Financial Planning Standard board says: "Unit
Linked is an Individual life insurance policy that provides life insurance
protection benefits as well as the opportunity to participate directly in
investment management at any time the value of the policy varies according to
the asset of the investment."
RISK
The risks faced by Unit linked holders are no guarantee of
the contents of our assets. we need to know that the Linked Unit Insurance
Policy gives the Policyholder the option to choose the type of investment and
flexibility to move funds at any time in order to obtain investment returns
from investments already in planting and overcome Inflation. And because the
eel is very Customer oriented, then the investment risk is on the policyholder.
Characteristic of
Linked Unit policy
1. Premiums paid by the policyholder are used to purchase
the units concerned. The more the amount of premium paid by the policyholder,, the more units owned.
2. Unit Price will be announced by the company periodically.
For example in daily form. But in reality now. Often the unit price will be
issued in Monthly form. So you can find out the value of your unit linked
insurance. Insurance companies in indonesia use 2 method of unit price. That is
method of single unit price and sale price.
3. Method 1 uses a single Unit price. Companies usually
calculate the cost of sales, insurance costs and administrative costs in
advance by cutting from the premium costs that have been paid by the
policyholder. In the form of percentage of premium or amount of money that can
be charged at once or periodically
4. Method 2. Using 2 price (dual Price) ie Offer Price and
Bid price
5. The premiums of each unit linked unit are broken into
various components and all costs are categorized.
6. Elements of protection may take the form of life
protection, disability, accident protection or health insurance.
7. The cash value is determined by the investment
performance of the asset and this performance is represented by the unit price
of the investment fund, and is not guaranteed.
8. The policyholder can generally add funds to the policy in
accordance with the minimum amount specified. this means the policyholder can
pay the premium by purchasing additional units of the funds in question which
will be added to the number of units in the policyholder's account.
Type of Unit Linked
Fund in Indonesia.
Unit Linked Fund is a set of funds contributed by buyers of
unit linked programs. Unit linked funds are managed by investment managers of
investment experts.
Funds will be
invested in various investment instruments, namely:
1. Fund shares
2. Fixed or obsolete income funds
3. Cash fund
4. Mutual fund funds
5. Mixed funds
Type of Linked Unit
Policy
1 1. Single Linked Premium Linked Policy
Where a number of premiums are paid by the insured first
before insurance protection begins. In the mean as long term money or can be
called with the mine and investment.
2 2. Policy Premium Unit Linked Premium
Premiums are paid on a verkala basis within a fixed period
of time. This program is designed with the focus of insurance protection. The
addition of premiums in accordance with the provisions of the company
administration.
Comparison with
traditional policy
1. Risk of Invetation
In Pilis Unit Linked Life Insurance, the value of the unit
directly reflects the value of the fund's assets and this value fluctuates
following the accomplishment. Thus the benefits and risks of the policy are
directly insured by the policyholder.
2. Transparency
Policyholders can see the allocation of premiums for various
expenses. the policyholder will receive an annual report describing the policy
elements such as premiums, death benefits, interest, mortality costs,
administration, and cash value development.
3. Premium
Unit Linked life insurance policy is more flexible, policy
holder can change the amount of premium previously submitted. The taker of
premium leave (not paying the premium within the specified time), can increase
the amount of premium. and the insurance company has the right to vary the cost
of the policy.
4. The benefits of dying
At the time of death, the policy without profit sharing pays
the sum insured with a fixed amount in reducing the policy loan including the
interest on the loan.
5. Investment Results
Unit linked investment results are directly linked to the
performance of managed funds, depending on the expertise of the investment
manager and market conditions.
Unit linked investment returns are not guaranteed, losses
can occur as a result of poor fund management and vulnerable market conditions.
The amount of money insured for life insurance is guaranteed.
6. Cash Value
The exchange rate of the policy with profit sharing is the
gross cash value shown on the policy including the accumulated bonus until
maturity date less the loan payable / auto loan premium payment including the
interest on the loan.
7. Option of premium addition
Almost all Linked Unit policies allow policyholders to add
premiums every time.
8. Investment Regulations
The insurance company must separate the Lined units' funds
in the balance sheet. The provisions are not applicable to the life insurance
policy. Investment of Linked unit funds on investment istrument allowed and the
risk is ZERO.
Benefits of Linked
Unit Policy
1. The potential for high growth of investment returns
2. Liquidity
3. Expertise in investment capital.
SHARIA SHEAR
INSURANCE
In addition to traditional Insurance and Unit Linked there
is one more insurance is in demand by many of the predominantly hardened Muslim
population. And in Indonesia itself is a predominantly Muslim country, so it
becomes a very profitable market for sharia insurance companies.
Sharia insurance and modern insurance have the same goal,
that is managing or mitigating the differentiating risks is how to manage them.
Management at risk if the sharia insurance will be spread on all who cursed the
insurance. This insurance adheres to the principle of helping please by
dividing the risk of all participants of insurance.
Sharia Principles.
1. The principle of law
Islamic law has a dual purpose of spiritual interest and
social good. Islamic policy encourages compliance with rewards. Encourage
compliance with penalties in the world and in the later days.
Measures are taken to ensure fairness in traksaksi and to
avoid improper self-enrichment. Sacrificing others, usury, and others.
2. Transaction or Contract
The insurance contract is deemed valid if
a. Legally legitimate the person making it
b. Eligibility of the problem
c. Approval is a contract.
The contract is deemed invalid if:
a. There is an element of Gharar :: uncertainty factor (not
transparent)
b. Maisir :: the existence of speculation, gambling or the
nature of the chances that appear as a consequence
c. Riba :: self-enrichment practices in a way that is not
true, monetary gain
d. Haram :: there are things that are included in the
category of prohibition in Islam, whether in the taking, the results and how to
get it.
e. Bathil :: Transactions must be free of illegal acts, cheats
and fraud.
3. Islamic Economic System
Sharia life insurance embraces the Islamic economic system
introduced by the Prophet Muhammad, such as mudharobah (profit sharing or loss)
Background of Sharia
Life Insurance
In the lateness of the product needs that refer to the views
of most of the great scholars and Islamic economists that the contract of
modern life insurance is not in accordance with the principles of Islamic law
(syariat) or contain things that are forbidden in Islamic law.
The basic rules of
Sharia Life Insurance.
1. Life insurance contract consists of akad al'mudharobah
for commercial purposes, akad Tabarru (grant) for the aspect of the risk in the
liability as previously mandated that the nature of membership.
2. Funds paid by participants remain participants either
individually or collectively.
3. The investment portfolio of the company's shareholder
funds as well as the participant's funds avoids any illicit transactions.
4. The profit gained by the company is divided between
companies and participants according to al'mudharabah
5. The existence of syariah supervisory board consisting of
scholars of legal experts who function to oversee the management, product,
finance and investment, sdm and marketing to comply with the provisions of
sharia
The benefits of life
insurance Sharia.
Sharia life insurance can be an option for Muslims who want
a product that is in accordance with Islamic law. Sharia life insurance
products can also be an option for non-believers of Islam who view the concept
of shari'a is fair for them.
Shariah is a principle or system that is universal, ie the
benefits can be used by anyone who is interested, mutually beneficial and
human.
