Life Insurance Types That Are AROUND The World

Types of Life Insurance (Freepik)

YOGYAKARTA - If you are looking for life insurance, you will soon find that there are many options. Choices are a good thing, but that means you have to understand options before you decide the type of life insurance that suits your needs the most.

Launching from the Forbes website, when you start looking for life insurance, you will face straight into two major decisions: What kind of life insurance is best for me? And how much life insurance do I need?

When you get the life insurance options and quotes, you will most likely lead to the type and amount of coverage that suits the amount you want to pay.

To help you start the search, this is an overview of the type of life insurance and the main points that each other needs to know.

Basisnya:

Policy length: Generalized period of time including 5, 10, 15, 20 or 30 years

Cash value: No

Premium: Level, annual that can be updated or decreased

Benefits of death: Fixed

How it works: Life insurance futures have a certain final date for the period of the period of time, when the tariff remains the same. After this period, you can update the policy, but at a higher rate every year. The general legacy option is 5, 10, 15, 25 or 30 years. This is the cheapest way to buy life insurance because you only buy insurance coverage and don't pay cash life insurance.

For who: Life insurance futures are ideal for people who want life insurance for certain debts or situations. For example, some people buy it to cover their tenure as a substitute for income for their families if they die. Some people buy term lives to cover years of mortgages or other major debt.

Weakness: If you still need coverage after the level period ends, you can find that the extension rate is not affordable. And buying a new life insurance policy can be very expensive based on your age and any health conditions you develop.

Basisnya:

Policy length: Permanent

Cash value: Yes

Premium: Level

Benefits of death: Fixed

How it works: Life-time insurance can provide coverage for the rest of your life. Accounts in the policy build cash value over time by using some of your premium payments and adding interest. Policy will have built-in guarantees that premiums will not increase, the benefits of death remain the same, and cash value will get a fixed rate of return.

For whom: Living a life is suitable for people who want life coverage and are willing to pay the guarantees given by the policy.

Weakness: Due to guaranteed features, life insurance is one of the more expensive ways to buy life insurance.

Basisnya:

Policy length: Permanent

Cash value: Yes

Premium: Maybe flexible

Benefits of death: Maybe flexible

How it works: Universal life insurance (UL) may be difficult to do

understand because there are several varieties and with very different features. Universal life insurance can be cheaper than life insurance because it generally doesn't offer the same guarantee.

With some universal life forms, you can vary the amount of premium payments and change the amount of death benefits, within certain limits. UL policies often have cash value components.

For who: universal life insurance can be good for someone who is looking for life coverage. Some types of UL are suitable for people who want to associate their cash value gains with market performance (indexed and variable universal mental insurance).

Weakness: If cash value is your main interest, not all UL policies guarantee you will make a profit. And if you are interested in flexible premium payments, you should still know your policy status to ensure that the costs and costs of the policy don't cost you cash and cause it to expire. Understand what's guaranteed in the UL policy and what's not.

Basisnya:

Policy length: Permanent

Cash value: Yes

Premium: Level

Benefits of death: Maybe fluctuating

How it works: Variable life insurance offers permanent coverage and cash value.

Policyholders choose a sub-account to invest and the decision determines the amount of account cash value growth. You can also lose money based on the performance of your sub-account.

For who: People who want life coverage and who want to take an active role in investing in their life insurance. Those who have variable life insurance also don't mind taking risks.

Weakness: You can lose money for death benefits and cash value if you choose the wrong investment.

Basisnya:

Policy length: Permanent

Cash value: Yes, usually

Premium: Level

Benefits of death: Fixed

How it works: You may see this kind of policy called burial insurance, funerals, or final costs.

Whatever the name, this is usually a small life insurance policy meant only to pay for funeral fees and other final fees. Homping insurance is often offered as a policy that you cannot refuse and requires no medical examination.

For who: This type of policy is generally for people with poor health who have no other life insurance options and who need insurance for funeral expenses.

Weakness: The burial insurance policy is expensive, based on the amount of coverage you get for your money.

The burial insurance policy also has protection for life insurance companies: Your beneficiaries will not benefit in full death if you die within two or three years of buying a policy. Check the policy timeline for this graded death allowance. Your beneficiaries may only receive a refund from the premium you paid, plus some interest.

Basisnya:

Policy length: Permanent, usually

Cash value: Yes, usually

Premiums: Various

Benefits of death: Paid after the second person dies

How it works: This joint life insurance policy ensures two people under one policy, such as husband and wife. Payment to heirs comes when both have died. You may see them called second-to-die life insurance, but for understandable reasons the industry is moving from this name.

Life insurance to survive can be cheaper than buying two separate life insurance policies, especially if one person has health problems.

For who: The survival policy can be useful in planning inheritance when life insurance money is not needed by the heirs until the two insured people have died. Life insurance can be used to fund trust, for example. It is also suitable for high-income couples who wish to give money to their heirs for property tax. Or it can also be used by partners to make donations to charities.

Weakness: If two couples are insured and one of them will suffer financially if the other dies, this is not the right type of policy. Couples who are still alive do not receive life insurance benefits. Payments are only made when both have died.

Basisnya:

Policy length: Hometime

Cash value: No

Premium: Can fluctuate

Death benefits: Rejecting the benefits of death when you pay a mortgage

How it works: The mortgage life insurance is designed to cover only mortgage balances and nothing else. This type of policy is different from the type of life insurance above in the two main things. First, the benefits of death are paid to mortgage lenders, not the heirs you choose. Second, the payment is a mortgage balance, or partial balance if that's what you insurance.

Credit Life Insurance

Basisnya:

Policy length: Permanent, usually

Cash value: No

Premium: Level

Death allowance: Pay off the remaining debt to the lender

How it works: Like mortgage life insurance, this insurance includes certain debts.

When you take a loan, you may be offered life insurance credit. Payments can usually be put into your loan payments. Life insurance payments are debt balances and paid to lenders, not your family.

Basisnya:

Policy length: Permanent, usually

Cash value: No

Premium: Level

Death allowance: Pay off the remaining debt to the lender

How it works: Like mortgage life insurance, this insurance includes certain debts.

When you take a loan, you may be offered life insurance credit. Payments can usually be put into your loan payments. Life insurance payments are debt balances and paid to lenders, not your family.

Basis:

Policy length: Connected to your work

Cash value: No

Premium: Low or free of charge

Benefits of death: Fixed

How it works: Life insurance that you may have while working is additional life insurance, also known as group life insurance. It sets rates by group, not individuals.

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