Some of us would have been offered to have life insurance. Not infrequently the sales that offer products by presenting the stories that we do not want to hear much less we are experiencing. For those of you who are a head of the family, that need then becomes bigger than you are still single.
Actually, what is the meaning of life insurance? According to the Life Insurance Association of Indonesia (AAJI) life insurance is a protection program in the form of transfer of economic risk to the death or life of an insured person If dianalogikan, life insurance is often assumed as an umbrella in your home, buoys on ships or aircraft. Indispensable for being useful at any given moment but often unthinkable when it is safe.
Of the many companies and life insurance products, which one should you choose? We share some important tips for you through this article. Hope can help you decide better.
Define Your Needs
Just like other tips that you need to understand when investing or buying something, you must first determine your needs. Like when you will buy a car, you definitely will not buy a city car when you have a large family and the terrain is often rocky terrain. Life insurance is also the way, you need to determine your needs to then determine the most appropriate product.
Usually the insurance company will offer more than one product to you. Each of these products usually offers different insured risks. Some of the things that are often offered are the cost of children’s education, critical illness, and other risks. As much as possible learn each product, compare each detail, then decide which one best suits your needs.
Become very funny when you experience financial chaos because following life insurance. Why is that? Because basically insurance provides protection to you. Well, so that does not happen, then you have to adjust to your financial condition. Do not let the aspect of protection that you will get is sacrificing other needs that have urgency that is not less magnitude. Currently there are many types of life insurance offered by insurance companies. If your budget is not much, then choose a pure life insurance only because the premium is relatively low.
If you choose insurance that all investments, the average premium is greater. If necessary make a monthly budget that is tight enough to ensure you are not too burdened with the amount of premium. Some experts recommend budgeting 10 percent of monthly income for insurance, but this percentage could be different for each person.
Make sure the Insurance Company is Credible
In addition to its diverse types, companies that provide life insurance are also diverse. Before deciding to become a customer there, make sure first the life insurance company is quite credible. Basically the business principle that is run is customer trust, just like any other financial company. Moreover, insurance is a form of agreement that includes long term, then the credibility of the company is a fixed price that must be fought. Then choose a financial company that never recorded problematic in managing finances.
You can see their financial statements either through newspapers or other mass media, pay attention also to the rating obtained by the company. If you do not really understand the financial statements, ask for help to others whom you consider to be more understanding.
Choose The Best Service
Credibility of the company is important, one of which is the case of how they provide excellent service to customers. For example, they provide customer service for 24 hours, because the need for it can come at any time without understanding the time. With these services you can access them anytime to find information about the details of insurance products that you enjoy.
These services also include how they deal with the claims you will use. Know the procedures they use, the terms and how long it takes for your claim to be paid out. One thing that is not less important is how their business relation with the hospital around where you live. Make sure they have a partnership there so that financial affairs becomes easier, the article will be a hassle when under certain circumstances you still have to pay first in the hospital.
Buy When You’re (Still) Healthy
Back again to the top, life insurance is like an umbrella to protect you from rain or intense heat. So when is the most appropriate time to buy it? Of course when the weather is still bright and allows you to do many things. Likewise with life insurance, it is not advisable to start using life insurance when you have experienced illness. To become a life insurance customer there are several requirements that must be met. Some life insurance companies are refusing patients to become customers because of certain health concerns. Even if accepted, usually customers who have suffered pain are required to pay premiums more expensive than the customers who are still healthy. Then buy life insurance as early as possible when you are still in a healthy condition, because however protection is needed when suddenly something happens that we do not want.
Check out the Insurance Policy
The sixth tip is similar to the first tip, which determines your needs. Before you decide to buy insurance, make sure you have carefully checked each insurance policy offered by the insurance company. The policy is different depending on the type of life insurance.
There are at least four types of life insurance that you can easily encounter:
Term Insurance-This type of insurance provides protection within a certain period of time. Usually this insurance is selected by young people who are still building their financial establishment, who want a good protection with a relatively low premium.
Lifetime Insurance-this insurance has dependents that keep going while the policyholder is alive. Usually insurance companies provide up to the age of 100 years, with the premium record is paid regularly in accordance with the provisions.
Dual insurance-this insurance is often called a contract. The reason, the company must provide compensation to the insured for the sum insured. Therefore, the premium paid is usually quite large.
Unitlink insurance-insurance products are often referred to as while drinking water, insurance as well as investment. According to the information available, this type of insurance has grown quite rapidly over the past few years.
Open to Investment Opportunities
This is an explanation of the type of insurance that was last called, ie unitlink insurance. What kind of investment can the customer get? This is one of the benefits of unit link insurance, customers are free to choose the desired investment. Usually they are asked to choose money market funds, equity funds, mixed mutual funds, or fixed income mutual funds. Just as with any other investment, it certainly has risks. Well, the risk of this loss will eventually become the customer’s burden