Term Life Insurance – Advantages, Advantages and Benefits

Posted on 91 views

Home » Insurance » The Importance of Term Life Insurance

Term life insurance is a type of coverage dues that has advantages over other protections. Here are the types, advantages and benefits of term life insurance contributions.

Term life insurance is an error of one type of life premium that has its own advantages over other protection benefits.

By: Prita Ghozie Financial Planner

Every human being will experience the same life cycle. Starting from birth & through a mini period, schooling, working, having a family & having and raising children, until finally entering a golden period, namely after-duty. Until entering the age of after-duty, someone who is still in a productive period, has income & can meet a lot of needs & desires such as buying a place to live, vacationing, seeing children graduate as scholars, watching children get married and others.

Although everyone can plan, the risk of unwanted incidents may occur. That’s why having financial protection in a family has a position that is just as crucial as investing. One of these financial protections can be met through life premium products. What is Life Insurance?

Life Insurance is a premium policy that will provide a number of coverage in the form of cash claims to beneficiaries or heirs if the insured is globally deceased.

Buyers of life premiums will generally get a life insurance policy, namely documents that contain premium benefits, premium payment rules and claim payments. A policy is a binding agreement between you and the premium company that issued the policy (not using a premium agent).

The purpose of buying a life insurance policy is if the policyholder experiences a disaster that causes death, the life insurance policy can help to cover some, if not all, according to the insured’s income or can help him to meet certain goals. But, of course, how the life insurance policy can help depends on the form of protection you buy.

That is why buying a life insurance policy is like buying a product that we hope is never used. Because of course we expect death not to happen – it feels very taboo to predict when the death will come. This phenomenon causes many people to feel no need to protect family finances or buy a life premium policy with coverage value under the need (under-insured).

The purchase of a life insurance policy, is one of the crucial points in a person’s financial journey. As a means of protection of family finances, the period of protection can vary from 1 year to life. Types of Life Insurance

In Indonesia, several types of life insurance products are known, including term life insurance premiums. This life insurance provides pure protection benefits, without any additional benefits such as saving or investing. Called futures because you can buy protection for an exclusive current period ranging from 1 year, five years, to 20 years. Simply put, if the risk of death to the owner of the coverage dues policy occurs during the duration of the policy in effect, the designated heir will receive a cash claim benefit worth the sum insured. Meanwhile, if the owner of the premium policy is still alive until the policy period is due, then in general there is no cash issued by the insurance contribution company. Advantages of Term Insurance

Term life insurance has various advantages over other types of life premiums. Arbitrary?Term life insurance premiums are generally more affordable than other types of life insurance contributions that put the same level of protection. But this is comparable to using term life premium protection that only puts protection with a limited period, which ranges from 1 tofu, five years, to 20 years.The duration of protection can be adapted to the needs. In fact, the need for protection over the risk of death is the most important in the productive period of the breadwinner. Term life insurance provides flexibility for a family to determine the duration of synchronous protection needs ranging from 1 year to 20 years.For this type of Sharia term life insurance, it still has a profit sharing feature at the end of the premium period if there is no claim alias no death occurs.Difference of Term Life Insurance With Other Insurance

The fundamental difference with other soul premiums is the absence of savings features. So, the shortcomings according to buying term life insurance is that savings & investments must be run separately.

The need for life insurance contributions depends largely on the situation of each individual. For poly people, life insurance contributions become a very crucial part based on financial planning. To know the amount of life insurance coverage required, please check using the help of this calculator! What to Look for Before Buying Life Insurance?

Before buying a life insurance contribution policy, make sure you already know how much the coverage value needs for the family. In addition, make sure you are also able to pay insurance premiums because the purchase of a life insurance contribution policy is a commitment. If the insurance payment is missed, the risk is that your financial protection no longer applies. Do not forget also to read & understand the contents of the life insurance policy.

Ok, hopefully the above issue can be useful. Please share this message with friends through the social networking feature below.

Live a Beautiful Life! Last modified: October 31, 2014

Hurry Up! Proof Visit

Leave a Reply

Your email address will not be published.

2 + 6 =