Friday, June 28, 2019

Mistake to buy many life insurance

Speaking of insurance, perhaps life insurance is an insurance that is still less popular than health insurance or unit link insurance. If referring to the data that is owned by the Indonesian Life Insurance Association (AAJI), the number of Indonesian customers who have life insurance is relatively low. Nevertheless, the insurance industry continues to grow annually.

At least this positive symptom becomes a sign that people slowly begin to realize the benefits of life insurance. Because of the increasing age and severity of the work, increased risk of death can be experienced. Moreover, it lives in major cities. Therefore, people began to enlist themselves in order to have life insurance.

Unfortunately, in buying insurance, some people still make mistakes. The cases that people do not understand the insurance provisions that apply. Of course this is fatal because the benefits that want to be gained are not in accordance with the expectations of the insured. If this is the case, the use of insurance will be futile. The following are some mistakes that are often made in insurance purchases.

1. Think money is enough coverage for the necessities of life. Turns out?
Uang Pertanggungan Asuransi Jiwa
This is the benefit to be gained from life insurance use. That is, it is very important to know exactly how much sum insured that will be received by the beneficiary if at any time there is a risk of death on the insured. Does the sum of the sum insured have the need of a good heir or is far from the word enough?

Please note that it is wrong to think life insurance coverage will suffice the need for family life left in a long period of time. Fluctuating inflation rate and increasing necessities of life will affect the value of sum insured earned.

Therefore, it should be known how to calculate the life insurance coverage money. There are three formulas used to calculate sum insured: Human life value, Income Based Value, and Financial Needs Based Value. Choose Life insurance that the calculation formula is beneficial to you and your family.

2. On investment value, not value insured
Investasi Terbaik 2017
Many life insurance users are more focused on the investment benefits contained in the insurance product they purchase and not on the life protection benefits contained therein. While in investment, the value of investments can go down and also have a fairly high risk.

If the premium payment is based on the investment result, it could be the value of the coverage received is not maximal, especially when the investment value has decreased significantly. The average case is experienced by the customer who buys the unit link life insurance.

For that, choose pure life insurance alias insurance without including investment benefits. This is better for those of you who want to feel the full insurance benefits. About investment you can do by investing money into several instruments. One of them by utilizing deposits.

3. Interpreting life insurance gives self protection, it turns out?
Asuransi Jiwa Termurah
Not everyone needs life insurance. Because this insurance has benefits for heirs, namely those who are in the responsibility of the insured. That is, the sum insured is only given to heirs. The insured person who does not receive the sum insured? So, do not buy life insurance if self-protection or insured money is accepted yourself as expected.

4. Misinterpreting the insured in police
Polis Asuransi Jiwa
Those who become the insured in the life insurance policy are those who are the backbone of the family/people who have dependents. That is, when he dies, his family will lose his living. Anyone who works and earns bigger money in the family must be the insured in life insurance. There is no need to buy life insurance for those who are not breadwinners, such as wives, children, or parents who are not already working.

5. Expect maximum profit from life insurance Link Unit. Turns out?
Asuransi Jiwa Unit Link
Many people start using life insurance because there are investment benefits in it. It is definitely the insurance that they buy is a unit link life insurance. They assumed that they were investing and benefiting life insurance protection at once in the investment.

The assumption is not wrong, but the benefits of insurance and investment are less maximum. Why? Because while paying the insurance premium, the premium is divided for insurance and investment. It is good to buy pure life insurance so that the maximum benefit coverage is obtained.

6. Buy riders at the right time
Asuransi Tambahan Riders
Buying quite a lot of extra insurance is not a problem if it turns out it is needed. However, how is the rider being bought at the right time? The benefits you want to feel are not felt. 

The cost of rider is quite expensive. So it is very important to consider it with maturity. No need to buy an unneeded rider. For example, critical illness insurance can only be claimed if the insured disease has been in the critical phase (stage 4).

Buy with clear objectives
Life insurance is different from other types of insurance. This product is devoted to assisting the heirs of the insured if left insured. For that, life insurance is recommended for those who have a family. It already has children. After knowing what is the mistake of buying life insurance, set goals clearly and buy them according to that goal.