5 Benefits of Lifetime Life Insurance
Life insurance is a protection service when a customer is adversely affected financially, be it life, health, property, to unexpected events such as damage, loss, to death.
Life insurance services are a form of protection for the future against the impact of financial loss or loss of income from someone who is the backbone of the family due to death.
Whole life insurance itself is a type of insurance that provides protection to customers for a lifetime or a maximum of up to the age of the customer reaching 100 years.
Lots of insurance benefits for the community which are life insurance for life, here are some of the benefits.
1. Help allocate a budget for long-term needs
As a private employee or worker, of course, you have a financial plan every month.
By having one type of life insurance, especially whole life insurance, the benefits of using insurance can help allocate a budget for long-term needs.
In addition, whole life insurance usually has relatively fixed or unchanging premiums, making it easier to manage financial allocations.
By allocating regularly every month will make the allocation of funds more detailed and orderly.
2. Opportunity premiums can be returned
The next benefit is the opportunity for premiums to be returned. The point is that whether a claim occurs or not, the value of the premium that has been paid can be returned to the customer after a certain period of time.
So this provides assurance and security, because customer premiums will not just disappear. Of course, this is very beneficial for life insurance users.
3. Premium payments can be adjusted according to ability
In addition to the guaranteed safe premium, the premium that must be paid is also regulated flexibly according to customer needs.
This type of premium payment is flexible or can be chosen as desired, for example payments within a period of 5 years, 10 years, even 20 years.
The premium payment period can also be estimated according to the capabilities of each customer.
However, it should be noted, the longer the premium payment period, the greater the funds to be paid.
4. Have a savings fund
The next benefit of choosing whole life insurance is having savings funds. Prospective policyholders who want to provide life protection as well as generate savings funds that will later be used for the emergency needs of the prospective policyholder.
In addition, whole life insurance also helps the needs of the customer's family members in financial matters and assists the customer in managing wealth or finances in the future. For example, for the educational needs of children.
5. Guaranteed cash value and get added value
The next benefit of whole life insurance is guaranteed premium value. Then in whole life insurance, there will be further benefits, namely additional value.
However, because it is an added value, this value is not guaranteed because it is the result of investment development.
The amount can also vary depending on the current investment interest rate.
Tips for Choosing Lifetime Life Insurance
After learning about the various benefits of whole life insurance, then there are tips that can be applied before choosing the type of whole life insurance. Here are the tips:
1. Determine the goal before choosing insurance
The first and main tip is to determine the goal before choosing the type of insurance.
Life insurance itself aims to protect family finances from the possibility of loss of income if the family backbone dies.
With the loss of the backbone, it will be financially difficult for the family, so life insurance here functions to provide compensation money to the family as a substitute for the income of the family's backbone.
In choosing the type of insurance, you can adjust it to your goals, benefits, needs, to the advantages and disadvantages of each type of life insurance.
2. Make sure you are committed to paying the premium
The next tip is to make sure you have a strong commitment to paying premiums regularly.
Before choosing to take out life insurance, of course, you have considered how important it is to have life insurance, so that this can be the foundation of your commitment.
This commitment to discipline in paying premiums must be instilled, because by not paying premiums life insurance protection will be terminated.
3. Choose an insurance company by considering the financial condition
The last tip that is no less important is choosing the right insurance company.
The basis of the selection of this insurance company on its financial condition. This is important to do to avoid default from the insurance company.
Need to check the track record of the insurance company, how to get it with online media.
First, look for the insurance company's financial statements, then pay attention to the Solvability Ratio section (Risk-based Capital / RBC).
The Solvency Ratio itself is an indicator to measure the ability of an insurance company to pay long-term debt for all assets that the insurance company has.
The government has stipulated that the minimum solvency ratio of a company that shows its financial health is 10 percent.
Make sure the insurance company you choose has a solvency ratio of more than 120 percent.
Customers who have entered the age of 40 and over are advised to choose this whole life insurance.
This is due to a longer period of time to a lifetime that can provide protection.
This protection is in the form if, for example, a customer suddenly dies and the customer wants to leave an inheritance to the customer's heirs.
Families left behind by customers will also not experience financial difficulties because they get protection from life insurance for life.