6 It is Obligated to Note When Buy Life Insurance at the Bank
Life insurance quotes are most evident at the moment is the sales bank. There are 6 things to note when you will buy life insurance through banks.
The Bank has a large customer database. Virtually everyone has an account and an ATM at this time.
This database is target market ' fertile ' create selling financial products.
Insurance is one of them. Why?
the customer had the money in the bank, the main requirement to be able to buy a product;
data on the bank's complete and update;
the customer relative already know financial literacy, financial products.
That's why you can look upon the bank in cooperation with the insurance company. They form the Bancassurance.
In Bancassurance, the bank provides the target market, while selling insurance products.
When it comes to bank branch offices, customers now often directly approached by the financial consultant who offers insurance protection.
Because the agent had a negative connotation, the term replaced a more sleek and prestige, financial consultant.
But the essence of his work is the same, prospects and sales of insurance.
Insurance sales via banking this is a breakthrough. Helps insurance companies enhance penetration into society.
But on the other hand appeared a lot of complaints from customers who buy insurance via the bank.
OJK never mentions the high complaint that goes to them for insurance products unit links (Note: the unit link insurance products are the most widely sold through banking).
Become our duty to be careful – heart, so that products purchased according to your needs and not detrimental.
What is the correct premium is being restored it profitable? What are the risks?
What are the things to note when accepting an offer of life insurance through banking?
1 the insurance is not a Savings
Don't ever believe that it is the insurance savings or deposits.
Insurance is not a savings. Insurance is not a deposit.
The perception of most banking clients are all the products offered at the branch bank is like a deposit or savings.
No guarantee against deposits from the Government. So there may be a loss. To place a deposit of 1 million, then it will receive 1 million plus interest.
The thing is, there's no guarantee insurance from the Government. Insurance of financial products is not guaranteed.
The funds you place on the very insurance could be reduced. Premiums paid could not return.
Why?
Because the funds placed in insurance (link units) is an investment that has risks. The value of his money could go up but could also go down depending on the performance of the selected investment instruments.
There is no guarantee that the money saved in insurance is definitely back.
There is a risk.
This obligation is understood when buying insurance.
Insurance is not a savings. Insurance is not a deposit.
2 the funds cannot be withdrawn
What is the purpose of people putting money in the bank? One can withdraw funds at any time.
The same mindset when buying insurance. They think that the premiums paid to the insurance can be pulled anytime during.
The thing is, the insurance premium cannot be withdrawn at any time.
Only a small part of the funds already deposited insurance to be withdrawn. In fact, if the withdrawal is made at the time of the initial membership, no funds can be withdrawn altogether.
Payment of the premium is used for three things:
Paying a Commission agent and the insurance company. This portion is big on the first five years
Pay the cost of insurance. This is a cost to get protection. This fee will be increased age and if not paid then the insurance protection stopped
Investments that are placed according to the selected financial instruments. These deposits can be withdrawn later.
Of the 3 things above, You can see that most investment deposits bontot position, so that the new funds withdrawal can be done after a few years.
Withdrawal then only will be if the investment return delivers great results.
If the return is bad, the money cannot be withdrawn.
3 Insurance Investment there are Risks
No Free Lunch!
There is no free lunch.
If you want a high profit, the risk is definitely higher.
Therefore, if there are offering insurance products with the lure of higher profit from savings or deposits, you have to be careful – heart.
Ask the seller's agent, what the risks are. How potential losses. If your money can be lost entirely.
If the dealer says, the risk is the same as savings or deposits, with higher returns, you have to be alert because the explanation is not correct.
In investments, the risk is closely related to the profit (return). The high profits have a high degree of risk.
"High Risk, High Return. Low Risk, Low Return "
We need to know that most premium placed by the insurance to the instruments which have a higher risk of savings or deposits, i.e. stocks, bonds, bonds and others – other.
So, when invest via insurance, you should be prepared with risk. The risk that money or your premium is reduced in value.
If it's not ready, don't be bought its products.
Buy the product when you are ready to face the risks for the sake of greater profits.
4 there is no Free Premium
There's never been a visitor tells the story that he was offered a premium cashback.
He said, the agent explained that the premiums will be returned so that the benefit of the participants.
What a sweet promise of this agent is correct?
It is true in a few years, participants can take the money premiums already paid. But, does that mean the insurance company mengembalikkan premiums to participants.
It is not.
Then, it's money where?
As already mentioned earlier, the premiums were paid participants allocated to protection soul and investment.
The important thing to grasp that premiums could be taken back it is money the participants themselves. It's your money.
It's not the money from insurance companies.
So, you give up (part) of the premium for managed insurance companies into investing. Tsb investments could profit, could lose out.
If the return on investment is profitable, the customer can take the results of investments, may also pay a premium for the next menalangi.
That is why, the insurance customer link units after a few years it could no longer pay a premium (premium on leave) because the premiums already paid by cutting from the results of its investments.
So, if You sort by agent, premium-free after 10 years.
That means, you still pay premiums, it's just that the money is not taken from your bags, but from your investment savings deposited in an insurance company.
What if the results of investments plummeting?
The client can't pull for the premiums.
There is not enough funds to pay the premiums. The customer must still pay a premium if it is to continue its protection.
So, no free premium name. Fixed premiums paid from the customer's money. Only source is all different.
5 Don't Buy Insurance by phone
We do not recommend purchasing insurance by phone.
Check out this blog: Reader comments
"Morning Sir, suamj in tawarin kmrn month a * * m * * * * * * by phone and then husband agreed to join the family with premium 2.3 m a month. MK. promising policy will send a reply hrs d d read and sign by the husband. TP fact until early pendebetan insurance auto debit account with d d DND indeterminate dtg policy account. Finally the husband call for immediately stopping the insurance a ** m **** **. Krn yg tdk suspicions give rise to Nice Dr. first. Where will policy d send but tdk in kirim2 until pendebetan in the account. "
Insurance it is not a simple product. Many clauses, provisions need to be well understood by the participants.
Read the policy document alone is not easy. Need to read slowly – slowly and repeatedly in order to understand the contents.
Let alone understand via the telephone, almost impossible.
6 don't buy Rush – Rush
Insurance it is not an easy financial products. Many judgments, many of the terms and conditions. It should be understood properly before buying.
Hurry hurry – do not buy. Better slow than fast but true but wrong so detrimental later.
If you don't understand ask to people who understand, find info on the internet or a consultation with a financial planner
Seek a second opinion.
Conclusion
Insurance is an important part of financial planning. Compulsory insurance protection owned everyone.
Bank deals are the way sales are rampant at this time. That's good because it will increase the penetration in the community.
However, as consumers, we need to understand correctly what we will buy. That way, you will avoid buying the wrong product.