Thursday, September 8, 2011

BUYING INSURANCE TIPS

BUYING TIPS & MANAGING YOUR LIFE INSURANCE POLICY

Many of you are probably currently in the process offered to buy a life insurance policy or even already have a life insurance policy.

Here are some tips on buying and managing your life insurance policy:

   1. BUY LIFE INSURANCE POLICY BECAUSE YOU NEED.

      Never to purchase a policy because your friends offer, brother, boyfriend, brother, sister, etc. But buy them because you need it.

When do you need insurance?

      If you have dependents such as a husband / wife, children, parents etc who are very dependent on you financially. Imagine if you as a breadwinner just unfortunate like disability or death means the loss of family income. Undoubtedly your family who have been financially dependent on you will have difficulty in meeting the needs of life and can lead to decline in the welfare of your family. By having insurance means that you ensure your family protected from disasters such as mentioned above

      If you have an obligation or a debt or loan repayments. For those of you who do not have dependents but already have obligations such as mortgage payments or debts required to have insurance to protect your debts if at any time you experience misfortune. Do not let your debt burden your family.

   2. VALUE OF ECONOMIC POLICY MUST BE COMPATIBLE WITH YOUR    REQUIREMENTS

      Life insurance policy you buy / have to have economic value that suits your needs.
      The easiest method to calculate the economic value of the policy (sum assured) that you need is based on  the cost of your expenses / liabilities.
      Example:
      Expenditure per month cost of Rp 5 million / month. With the assumption of deposit rate is 6.5% / year, then UP to be taken are:

      5,000,000 x 12 months (spending a year)
      ------------------------------------------ = Rp 92,307,692
      6.5% (Deposit Interest)

      With the UP of Rp 92,307,692 if something happens to you as a breadwinner, then by saving money in a deposit will get Rp 5 jt each month. Where is the money of this magnitude is enough to cover family living expenses if you are unfortunate.
      UP value that you have should always be evaluated at least or at most 5 years. It is useful to ensure that the tone to allow sufficient funds to ensure the welfare of your family.

   3. BUY TYPES OF INSURANCE IN ACCORDANCE WITH THE PRODUCTS YOU NEED.

      Basically there are 4 Types of Life Insurance are:

          * Term Life (Term Insurance)

            Life insurance can benefit from this type of protection in a limited period usually 1, 5, 10 or 20 years. Life insurance does not provide the benefits of cash value (cash value) unless the sum assured. So if you live until the end of the period of coverage there is no benefit gained from this insurance. Usually this is suitable for those who need protection in a short time (eg in travel agencies or tour or to protect the value of debt / credit to you). This type of insurance premium is the cheapest.

          * Whole Life (Life Insurance)

            This insurance provides protection benefit for life or until age 99 years. This type of insurance has a cash value (usually occur in 2nd or 3rd). This cash value you can use as a cash loan or a cash value that can be retrieved when you perform the redemption policy.

          * Endowment (+ Savings Protection)

             This type of insurance combines protection and savings / investment. In this type of insurance you will receive a death benefit in addition you will also receive a cash value that had been planned when life until the end of the coverage. Examples of this insurance is insurance education insurance and pension funds.

          * Universal Link / Investment Links / Link Units

            This type of insurance is life insurance coupled with an investment scheme. This type of insurance     suitable for those of you who enjoyed the element of risk in return for high yields as well. For those of you who want to buy the insurance of this type of investment consider the risk profile that suits you. To determine the appropriate risk profile usually you will be guided to fill out an application the determination of investment risk profile.

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