Investment unit link. Financial planning can not be separated from what is our goal. Someone who save in the Bank has the objective to establish a standby fund to send their children to college someday. It could also be the person who has the goal of savings in banks established a fund preparation of buying a home. Or any other purpose that clear savings in the Bank have a goal for the future.
If combined with the interest in the future, the truth is just a form of bank savings, which can help your financial planning? Obviously there are other options such as investing in Mutual Funds and Unit Link Insurance.
Actually what is the difference between save, mutual funds and unit-linked insurance? Let us consider the following differences
SAVING IN THE BANK
If we save money, of course, we will have the balance of the money in the bank at any time we can use to cover our needs such as: paying tuition, buying a motorcycle, or for old age security. But there are other factors that can threaten the survival of our savings, namely health risk factors such as illness or death.
If the breadwinner is sick or dies would be endangered depositors depleted to cover the cost of treatment, or discharged to the cost of daily living. So the original purpose of saving could be – could not be reached.
Mutual fund is a type of investment that also has the function of savings. By having mutual funds, we will get regular income as a result of the investment. Mutual Funds is a solution for people who want to invest in the field of securities but does not have the technical skills in the field of letters – securities.
By investing in mutual funds, the funds paid will be managed by an investment manager, so that people do not have to mess with technical problems in managing the affairs of investment securities such as stocks.
Revenue from this fund after collected from period to period will shape investment returns that can be used for future financial plans. As well as savings, mutual funds have a weakness in relation to risks that may occur. The investment income that is collected can be wiped out if we as investors have pain having to pay expensive medical treatment.
INSURANCE UNIT LINK
This one kind of investment that is different from the savings and mutual funds. Benefits offered a more complete, including life insurance, health insurance and investment savings.
By having a unit-linked insurance policy, then in addition will get the savings investment returns continue to grow from month to month and from year to year. Customers will also get life insurance and health insurance, which will protect the customers of financial loss due to the risk.
If the customer was treated in hospital who have to pay huge medical expenses, the company will bear, so that depositors remains intact and the return on investment is not compromised. If the client dies, the insurance company will provide compensation plus investment results that can be used to pay school fees and daily needs – day, so the ideals – ideals children can still be achieved and the survival of the family is maintained.
Based on a comparison of the benefits include savings in bank, mutual funds and unit-linked insurance, the unit-linked insurance is a more appropriate form of investment, which can cover the needs at every stage of life.
For reference, you can learn the kind of – kind of the Prudential insurance products, so you will better understand what protection you should have. Prudential Indonesia is not to promote, but to increase your insight about the need for protection.