Life insurance is the insurance that aims to bear against unexpected financial losses caused by the death of his life too fast or too long. risks encountered are:
- The risk of death
- living too long
If the analogy, life insurance is often posited as an umbrella in your home, float on ships or aircraft. Is needed because it is useful at a particular moment but often do not think of when it is safe. So life insurance is very reliable, especially when undesirable situations occur.
Here are Tips How to Choose Life Insurance Properly:
1. Really need life insurance?
Do not buy insurance policy just because someone recommended it. Many advertisements on life insurance that can make us be worried and had to buy a life insurance policy, because not everyone needs life insurance.
The purpose of life insurance is to provide financial protection for people who become our dependents. If we do not possess dependents, life insurance is not deemed necessary. If we have a mortgage or a family to be living and thinking in order to protect them when we (the provider), the life insurance may be a good choice.
Understand and know the requirements needed by the people that we bear. Know their needs until a certain time, it can help us to choose and buy a type of life insurance with the insurance money that can meet their needs.
2. Knowing Types Of Life Insurance
Basically there are three types of life insurance, ie Term insurance, Whole life insurance and Endowment Insurance.
a. Term Life Insurance.
Is a term life insurance with a specified time. If the insurance contract has expired but the claim does not happen, then the amount already paid are not refundable. The amount of premium paid smaller, but with big money pertanggunagn.
b. Whole life insurance.
Is a life insurance that guarantees the owner until the age of 99 years or a lifetime. The price of insurance premiums are more expensive than term insurance. There are other benefits of this insurance is that it can be used as loan collateral and there is a bonus dividend. When the insurance contract had expired, there is an amount of money that can be returned.
c. Endowment insurance.
Is a term insurance that serves as savings. For the value of the most expensive insurance premiums than Term insurance and whole life insurance. This insurance has a cash value, and the funds can be issued at a predetermined time period before the insurance contract is up.
Of the three types of life insurance that we are required to be able to know to choose the type which.
3. Check Health Level of Insurance Company
To see the level of health, of the insurance company can be measured from the Risk Based Capital (RBC), which simply means a comparison of the company's total assets as compared to the risk of claims. The Government provides 120% standard for RBC. The greater the value of RBC insurance company, then the healthier the company.
4. Buy when you are healthy.
By the time you are in a healthy condition, automatically the insurance premiums paid will be minimal compared to if purchased at the time was ill. Alternatively, the insurance company will refuse, if the health condition is not in accordance with the requirements.
5. Compare Products from Insurance
You can also compare multiple insurance products as well as to ensure that best suits your needs. Top insurance is one website that provides information and comparisons between Life insurance products.
6. Consultation with insurance agent
If you already have a preliminary description of the insurance product, we also can consult with the insurance agent to get information more complete and thorough.