Type of life insurance

Type of life insurance

The word life insurance is already familiar in the ear. And maybe you also unknowingly have heard of life insurance for life. Then, the question arises what is meant life insurance for life.

However, it just goes away because of the lack of information obtained, so you are still not interested to try it. For those of you who know more, here is an explanation of life insurance for life, from the definition to the advantages and disadvantages, and the type of protection provided, so it can be a consideration and can use it well.

1. What is Life Insurance for Life?

Have you ever heard of whole life insurance? Yup, that is the term of Life Insurance for Life.

Life insurance for life is a type of insurance that provides protection to participants lifetime or maximum up to 100 years old. Of course this could be a consideration whether or not to take life insurance for life. Therefore, the average age of a person can rarely reach up to 100 years.

Even so, we certainly never know how long it will survive, right? Because it is beyond human control. Therefore, there is no harm in preparing all the possibilities that exist in the future.

The essence of life insurance is to provide coverage to the participant’s heirs when the participant dies. So that the families left behind will not experience the difficulties and hassles of financial problems later on.

This is important, especially if there are members of the participating family who need money. Of course this type of insurance is quite useful to follow.

And life insurance is considered more precise lifetime followed by participants aged about 40 years and over. Why? Because this insurance focuses on providing protection in case of risk of death and the insured wants to leave a legacy to his heirs.

In addition, this insurance can be used as education fund, pension fund, and others, from the cash value that is accumulated and set as the goal at the beginning when applying life insurance for life.

2. Type of Life Insurance Policy

Life insurance has a lifetime of several types of policies, including:

Direct soul policy (Straight life policy)
Under this policy, the premium remains paid until the insured dies or until the age of 100 years. So the cash value will be formed during the policy or equal to the basic sum insured when the participant reaches the age of 100 years. If the participant is still alive to that age, the sum insured will be paid and insurance protection automatically stops.

Lifetime lifetime limited payment (Limited-payment whole life insurance)
This type of policy is intended for people who want to have lifelong protection, but do not want to pay a premium for life. In other words, premiums can be paid within a certain period of time or until a certain age participant. Even so, insurance coverage continues for life. So the premium payment is done in a shorter time.

Policy does not participate
In this policy, if the insured person dies, the heirs will get basic sum assured with a limited amount. There is no bonus element from the insurance company. Only limited to the premium paid only.

The policy participates
This policy allows insurance companies to share profits with participants, with an additional premium. So that participants will receive additional bonus every year. The amount of bonus can not be guaranteed with certainty, because it depends on the profit of the insurance company.

After knowing the definition of life insurance for life, hereinafter is the advantages and disadvantages of this insurance. Anything?

3. Advantages and Disadvantages of Life Insurance for Life

Currently, there are many life insurance products that offer lifetime coverage or age maximum. If you do not want to feel disappointed after making a decision, it’s good to check in advance the advantages and disadvantages.

Thus, the insurer can benefit maximally from the type of insurance selected. Do not let the decision that has been taken is considered burdensome and does not provide benefits as the initial goal.