As might be expected, the most
appropriate insurance product is not a link unit or other insurance that has a
value of investments. With unit link, customers get
lifetime protection, although of course, almost everyone does not need life
insurance protection throughout his life. On the unit link, the customer
must still pay the insurance premium even when the concerned do not need it at
all.
The second reason is the same
as the reason in my previous posts. Administrative costs and agent commission
on a link unit is too large. In the first years following
the link unit, practically wiped out customer funds to pay the agent
commission. In addition, there are other
administrative costs are no less magnitude, and are usually prospective
customers do not realize it at the first unit of insurance following the link.
So the life insurance product
which is right? The most appropriate products are term life insurance. Term life insurance is pure
insurance products, no-frills investment. If the insured dies during a
dependent, then the left will get the sum assured. If the insured is still alive
at the end of coverage period, then the premiums will not go back.
The characteristics of term
life insurance are as follows:
There is no investment element
or for the results (except perhaps the Islamic insurance)
the length of coverage period
is relatively short and not for life. Usually sold in units of 1, 3, 5 or 10 years.
At the end of coverage period,
the customer has the option to renew contracts with large premium increases in
accordance with the provisions stated in the policy.
Price premiums are relatively cheap. Market today for about 30
years of age and no smoking is approximately $ 300 thousand / year for the sum
of Rp 100 million.
Almost never offered as an
insurance agent commissions they get much smaller than if they sell unit-linked
products. Customer must ask for
specifics, or even come to your own insurance company office.
