YOGYAKARTA What is PAYDI or a link unit? PAYDI is an acronym for insurance products associated with insurance. This is one of the life insurance products that must be known to the public before placing financial protection through insurance or long-term financial planning through investment.
According to the Circular Letter of the Financial Services Authority Number 5/SEOJK.5/2022 concerning Insurance Products Based on Investment, PAYDI is the least insurance product that provides protection against the risk of death and provides benefits that refer to investment returns from collections of funds specifically formed for insurance products, both in the form of units and non-units, including those held based on sharia principles.
Based on the SEOJK, there are three PAYDI criteria, including:
From these three criteria, it can be concluded that the purpose of this insurance product is long-term financial solutions that provide protection, both soul and health.
PAYDI Characteristics
Adapting Kompas, Wednesday, March 15, 2023, the hallmark of PAYDI is accessibility, flexibility, and double benefits, namely insurance protection and at the same time investment.
Customers who buy PAYDI products can make partial cash withdrawals and premium leave if they experience financial problems without having to lose their insurance protection.
However, the facilities provided will cut cash value in customer insurance policies. This is to replace the premiums paid regularly.
Therefore, before taking premium leave, customers must ensure that the amount of cash is sufficient. The reason is, prolonged premium leave can make the policy run out and the policy becomes labeled (inactive).
Not only that, PAYDI also allows customers to add additional benefits flexibly according to their needs. The addition of this benefit can be done whenever you have an insurance policy.
PAYDI Scheme or Link Unit
Quoted from the OJK's Attitude page, in the PAYDI product scheme or link unit, the money deposited by customers is not only intended to pay insurance premiums, but also to be invested by insurance companies through investment managers, so that their value continues to grow. This is different from conventional insurance products that only focus on selling protection.
However, customers should not be lulled by the lure of a combination of investment and protection in one product as offered by the link unit. Because, like other investment products, PAYDI is also not free from risk. One of them is the risk of decreasing investment value.
Types of PAYDI or Link Units
Still from your OJK attitude, there are four types of PAYDI or link units, including:
That's information about what PAYDI is. Hopefully this information can increase the insight of VOI.ID readers, so that they can optimize the benefits of PAYDI.
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