Is It True That PAYDI Premium Is Only 10 Years Old? Come On, Check Out The Explanation To Avoid Inactive Insurance Policy

Illustration. (Photo: Unsplash)

JAKARTA - You know, currently, insurance can be combined with potential investment returns where the potential investment returns can later strengthen protection (protection). This is no longer impossible thanks to the presence of Insurance Products Associated with Investment (PAYDI).

PAYDI can be used as one of the long-term investment instruments. But keep in mind that PAYDI is not a savings or deposit.

Investment returns in PAYDI are the same as investment using other instruments, such as stocks, bonds, money market instruments, which are greatly influenced by market price fluctuations of the types of investment funds selected by customers/calon customers so that their value can go up and also drop. Therefore, it is important for customers/candidate customers to understand the risk profile in order to understand the level of risk of each investment fund of their choice, and in accordance with the tolerance of investment risk they can bear.

By buying the PAYDI Policy, the main benefit that you will get is the benefits of protection within a specified period of time as needed. To ensure protection (protection) for the risk of life that you may experience, you must make precise premium payments to keep the Policy active (in force). Here are some of the main benefits of insurance protection if your policies are always active:

- Stay protected when the risk occurs

Active insurance policies will continue to provide protection in accordance with the terms and benefits that have been agreed upon. If there are risks guaranteed in the policy, such as illness, accidents to death, you will receive the benefits of protection in accordance with the terms and conditions of the policy. That way, you can minimize the financial risk well and even provide peace of mind for you and your family.- The freedom to upgrade the Policy according to your needs and financial ability

If Policy remains active, you can also get convenience in choosing or expanding or increasing benefits that can be adjusted to the latest financial needs and capabilities along with the level of life you live. For example, the need for when you are not married and after marriage certainly has an increased financial risk and requires different protections. Well, this condition allows you to update or rearrange your policies according to your financial situation.

For the protection provided by insurance companies, there are components of costs for Policy that must be paid by customers such as acquisition costs, insurance costs, administrative costs, withdrawal fees and policy reduction, investment fund transfer fees, investment fund management costs, and taxes. These costs are taken from the premium paid by customers. Further information regarding the insurance costs can be read on the following link.

In addition to the cost component, which needs to be a concern when you have PAYDI Policy and are faced with a situation that makes you unable to pay premiums, then you can do premium holidays or premium leave, which is a condition where the Policyholder does not make periodic premium payments that have been stipulated in the Polis for a while but the responsibility remains valid.

When you don't make premium payments and choose to apply for premium holidays, the cash value formed will be used to pay the fees for the Policy but your Policy will only remain active as long as the cash value of your policy is sufficient to pay the Policy fees. Information on the amount of Cash Value and the amount of insurance costs, administrative costs and other policy fees are available on transaction statements and can be monitored by customers through a PRUService in the Pulse by Prudential application. According to the OJK, on new PAYDI products after March 14, 2023, the premium leave is only allowed if there is an application or approval from the Polis holder and the insurance company. To make a premium leave, you must submit a direct request to the company or through a marketer 30 days before the enactment of premium leave and conduct a Policy evaluation to ensure sufficient cash value to pay insurance costs and administrative costs during premium leave.

It should be noted, if the cash value formed is insufficient to pay the Policy fees, then Policy will be at risk of being labeled where the protection benefits (protection) will stop. In addition, customers will also receive a notification three months before Policy is declared posted via email or notification letter sent via post according to the correspondence chosen by the customer. For that, for those of you PAYDI insurance policy owners, the year to keep Policy active, you must also continue to pay premium until the end of your coverage, even though it has entered a certain period for example 10 years. When you conduct initial consultations with the Marketers, it is generally given an explanation of the illustration for premium payments over a period of several years which shows that within that time it is a minimum period of protection for us in the insurance, so that it does not mean that you can stop paying the premium after the period of several years is achieved and still get protection (protection) without any premium payments.

So, how can premium payments always be on time and not missed? You don't need to worry. Currently, insurance companies continue to innovate in order to provide convenience and convenience for their customers in transactions. Including what Prudential Indonesia does which provides convenience and convenience in premium payments through the following payment channel options:

First, you can make premium payments on an autodebit basis through your savings account or credit card. For this reason, Prudential Indonesia has presented Prudential Link facilities. Second, in addition to the autodebit payment process, Prudential Indonesia also provides PRUServices which are services on the Pulse by Prudential application to make it easier for you to access policies anytime and anywhere, including for the purpose of paying premiums. You can download the Pulse by Prudential application through the App Store or Google Play and enjoy the ease of insurance services. Before you decide to buy PAYDI, you should pay close attention to your future financial needs properly and carefully. Never hesitate to consult and ask as detailed as possible about the product you choose to the marketer until you have believed that the selected product is in line with future plans, needs, financial conditions and of course your risk profile.