The appropriate understanding for insurance is the economic value when people have a death tragedy, then the beneficiary could get sum insured based on the insurance policy agreement.
Life insurance is one of financial protection which given by the company to the policy holder for Life, health from the death risk, illness or accident based on the agreement letter between the policy holder as the insured and life insurance company as insurer related with the policy requirements.
- Risk Transfer
With only small amount of premium, some people or company can transfer their risk to the insurance company
- Aggregate Amount
Total premium received and collected by the insurance company will be used as a fund to pay the ongoing risk.
Life Insurance Benefit
People need life insurance for their financial protection or their retirement planning which have unpredictable risk in human life.
Life Insurance Phase
Before deciding which the life insurance suitable for your need, you have to know first about the life insurance itself.
- Traditional Term Life
Traditional term life is purely life insurance, which only receive the sum insured when the insured pass away during the insurance period.
- Unit Linked
Unit linked is individual policy with a financial protection and additional investment factor using the unit price and has a variety value according to the value investment asset.
Insurance definition based on â€śPasal 246 Kitab Undang-undang Hukum Dagang (KUHD) Republic of Indonesia.
"Insurance is an agreement; in which the insurer ties a connection with the insured by receiving a premium which will be use to give replacement for disadvantage, damages or loss benefit, which possibly happen causes by unpredictable occurrences."
Based in that definition, there is 4 factor on insurance, which are :
- Insured committed to remunerate the premium to the insurer continually.
- Insurer committed to remunerate sum insured to the insured at once or continually when unpredictable occurrence happens.
- Unpredictable accident.
- Interest could go through disadvantages causes by unpredictable occurrence.