CLASSIFICATION OFF INSURANCE

Broadly speaking, there are two types of insurance, i.e. traditional insurance and insurance of non-traditional. Let us refer to the discussion he continued.

Traditional Insurance

Understanding life insurance policy (Life Insurance Policy) according to the definition of a LOMA (Life Office Management Association) are:

"Life insurance policy (Life Insurance Policy) is a policy where the policy in insurance company promises to pay benefits on the death of the person insured/insured."

Traditional insurance also has a variety of types, each of which are described as follows:

1. Term life Insurance (Futures)

Futures only provides insurance protection within a certain period only. Protection could be the shortest Board a plane from Jakarta to Semarang for less than two hours or for 20 years. His trademark, there is a time limit of insurance protection. In addition, if a risk does not occur, the insurance money is not refunded or forfeited.

This type of insurance has the cheapest premium among other insurance. Money pertanggungannya the great, can also reach the billions with a premium that is not too drained the contents of the bag. Type of term life insurance has no cash value. If at the time of expiration of the insurance contract the insured still healthy in fine health, the contract expires and no money is given to the insured.

2. whole life Insurance (lifetime)

This insurance contains the value of the savings. The period of protection any longer, up to 99 years. This insurance is referred to as term life insurance that refinement has no cash value. But the value of the premium that must be paid to the customer also is more expensive than term life insurance.

On whole life insurance, when the contract ends and the insured is still healthy in fine health, there is the cash value provided to customers. Whole life policy cash values can be used as loan collateral and there's a bonus dividend of the company for the whole life policyholders. In addition, if you can't pay the premiums, policyholders can take withdrawals from the cash value. This feature does not exist in the type of term life insurance.

3. Insurance endowment (dwiguna)

The third is the traditional type of insurance endowment. It is kind of like insurance futures as well as savings. Form of insurance endowment. In addition to having the cash value, there are also funds issued in futures before the insurance contract expires. These funds get out regularly for example 3 years or 5 years.

For example like issuing education insurance fund when the child is aged 5 years to KINDERGARTEN entry fee, admission fee for 7 years of ELEMENTARY SCHOOL and beyond. Unfortunately, this endowment insurance premiums much more expensive compared with the futures as well as insurance premium whole life.

Non-traditional insurance

Non traditional types of insurance is only one link unit. In addition to functioning as protection, also serves as an investment. Premium money is paid partly used to pay for protection and partly placed in mutual funds in the form of unit links.

Policyholders will be asked to select in which will be placed its investments, whether in stock mutual funds, unit trusts, mutual funds or fixed income, money market.

For this type of unit link insurance is quite complex and more difficult to grasp. So that potential borrowers need to really pay attention to and examined further.