The Important Role Of Types Of Life Insurance For Future Life
You may already be familiar with life insurance, which is often offered by various insurance companies in Indonesia. However, if you are still confused about the meaning of one of these insurance products, we will explain it in detail. Life insurance is a written agreement between the policyholder and the insurer. This insurance company will bear a number of costs if the insured or policyholder dies due to several factors. But before that you have to pay a premium for the best type of life insurance as a guarantee for unexpected financial losses due to the cause of death.
This type of insurance can basically be purchased on behalf of a person or a third party. Where do you buy this type for relatives, husband, wife, children or next of kin. So that when the insured experiences an unexpected event, it can be claimed on behalf of the insured. There are several types of the best and most trusted insurance that can be used as an option for the people of Indonesia. But before explaining some of the best types, it would be better if you understand how important the role of life insurance is for life.
- Protection of income funds for families. No one would be able to predict what would happen in the future. So to anticipate the possibility of a disaster, it is better to buy a life insurance policy so that the family left behind still gets compensation or dependents.
- Self-protection against the risk of disease that is the cause of death. According to WHO, 10 types of diseases are the biggest cause of death in Indonesia, namely coronary heart disease, tuberculosis, vascular disorders, respiratory problems, traffic accidents, diabetes, diarrhea, high blood pressure, etc. All of these diseases can be taken into consideration to protect yourself if one day you are at risk of contracting the disease.
The 2 Best Types of Life Insurance to Follow
After knowing the reasons for the importance of choosing life insurance, then you must know the best type of life insurance. The goal is that people can more intelligently choose the type based on benefits, needs, and the ability to pay premiums every month. So, here are some of the best types of life insurance recommendations that you must know.
#1. Term Life Insurance
Term life insurance or term life insurance has a function as protection for the insured for a certain period of time. Contracts offered by companies to policyholders are usually around 5, 10, up to 20 years. The premium set is also very affordable and relatively cheap. This type of insurance is highly recommended if you prioritize the future of your family. Even this type is also very suitable if you have big needs with limited premium payment capabilities.
There are several advantages to using this type of term life insurance, one of which is that you can freely determine the premium amount according to your capabilities. In addition, the sum insured can be obtained by policyholders, reaching billions of rupiah. That is, if the insured dies during the contract period, then you will get a relatively large sum insured.
#2. Whole Life Insurance
Unlike the previous point which provides life protection in certain contracts, whole life insurance will give you life protection for life. However, some companies limit the benefits of this protection until the policyholder is 100 years old. This type is highly recommended if you do not have large amounts of dependents. Besides having benefits as death benefits, this type is also very useful as a long-term savings idea. That way, if you want to get life protection as well as savings for emergency needs, then you can start considering buying this insurance policy.
Some of the advantages offered by the company for users of this type of policy include:
- Policyholders can get cash value from the amount of premium that has been paid.
- If you do not pay regular premium installments, you can use the cash value of the premiums paid.
- Premiums that have been paid will not be forfeited if no one claims.
- If the contract ends, all sum assured will be given to the policyholder.
Before deciding on the best type of life insurance to buy, it would be better if you gather a lot of information and compare everything to get more optimal life protection in the future.