4 The type of Life Insurance Product has Advantages and Disadvantages

Life insurance has advantages and disadvantages-There are 4 types of life insurance products that surely each has different advantages and disadvantages. Types of life insurance aims to serve a variety of needs, abilities, and purchasing power. 

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Please note what are the different types of life insurance:

# Futures Life Insurance 

Futures or term life insurance life insurance these functions to give protection to the insured within a certain period only. Life insurance is usually offered contracts for 5, 10, or 20 years, with a fixed premium and countless cheap.

Is recommended that you choose this kind of life insurance if you give priority to the future of your family especially children education. Suitable for those who have a need for a huge insurance costs but have limited financial ability.

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If you choose this, some life insurance benefits are:

-You as a policyholder get freedom in determining the magnitude of the premium in accordance with your abilities.

-Sum assured that you can get as the policyholder could reach billions of dollars. That is, if the insured dies during the contract is still active, then the family of the insured will get a sizable sum assured.

Meanwhile, the lack of this type of insurance are:

-The insured could lose the money already paid premiums or premium charred so the contract is complete when having no problems health or died in the world until the completion of the contract.

#Whole Life Insurance

Whole life insurance provides protection for a lifetime, even though insurance companies typically limit the benefits of the protection to just 100 years.

Life insurance is recommended for those who have no dependents and wanting more benefits than just compensation for the death, or you are interested in the idea of long-term savings. So, if you want the protection of inhabitants at a time savings for emergency needs such as paying hospital bills, you can consider to buy this type of life insurance policy.

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The advantage of this type of insurance are:

-Policyholders it is possible to get the cash value of the premiums already paid.

-When you as the insured could not pay the premium installments periodically, you can use the cash value of the premiums already paid to pay the premiums.

-Insurance premiums that you have paid will not be forfeited if no claim.

-When the contract ends, the sum assured will be paid at all.

Meanwhile the drawback is:

-Premiums larger than life insurance premium, could even reach more than two times. The reason of the high premium it is because life expectancy of society Indonesia only 65 years for men and 70 years for women, so the possibility of insurance claims before the protection ended higher.

-The cash value of the total premium paid is not too large because the flowers for this insurance is usually only by 4% per year, and this figure has not cut taxes.

# Endowment Insurance

This type of endowment insurance in accordance with his name is insurance that has two benefits, namely life insurance as a forward at the same time savings. This means that you as a policyholder can get the cash value of insurance premiums that you have paid in the form of sum assured if the insured dies within a certain period in accordance with the policy of the insurance policy in question and can also attractive insurance policy within a specified time before his contract ends.

This type of insurance is recommended for those who want to ensure the availability of more funds for the education of children, want to have funds for unexpected needs in the future, and want to have a retirement fund.

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The advantage of this type of insurance are:

-As already described above, you can claim this life insurance policy before the contract expires, for example to fund your child's education. But withdrawals can only be made once in a period of several years in accordance with the agreements that have been made.

-If for example you as the insured is still alive when the time period expires, you will get the entire sum assured.

Meanwhile the drawback is:

-Because this type of life insurance has two benefits, like combining the benefits of futures with life insurance whole life insurance, so the premiums is large enough, it could reach millions of dollars per month.

# Life Insurance Unit Links 

Life insurance types of link units combine the benefits of insurance with investment, and most often offered by an insurance agent. If you are interested in investing but didn't understand about investing and wanting to keep make sure your soul still get the benefits of protection from death, you can choose the type of life insurance.

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The advantage of this type of insurance are:

-You as a policyholder does not just get a guarantee of protection alone but also the yield of an investment with a high enough interest rate each year.

While the cons are:

-Return from investment is less significant when compared to the pure investment such as stocks, money market, or mutual funds. If you are looking for a huge profit from the investment, you should not rely on life insurance link units.

-The sum assured will be retrieved belong to low, especially if the investments fail or just making a profit.

COVER

That's from some website https://www.insurancelifestyle.com/ which has advantages and disadvantages of life insurance and may be useful.