Five Benefits of Life Insurance for You

First, make sure that your family has adequate funds if you die unexpectedly. Or, the family whenever you get the protection you have a total permanent disability due to illness you suffered so that you can not work as usual.

Of course, we never expected this catastrophe. If that happens, when you protect yourself with life insurance products, the family as the beneficiary will receive valuable protection against the risk of something unexpected in the form of sum assured.

Second, ensure that your family can maintain the quality standard of living when you die. Without the protection of life insurance, these incidents resulted in lost family income that your family's standard of living further decline.

Unexpected conditions and the negative impact could be eliminated if you already have a life insurance policy. Insurance policy you have to provide financial compensation in the form of sum assured and other insurance benefits for your family as an heir. Of course, they get compensation in accordance with the program you purchased insurance.

Third, the costs of education your children. Today, education needs from time to time experienced significant improvement. There are many elderly people who mess around with the amount of school fees for their children who want to go into elementary school level, junior high, high school, or university.

When you have to include your children in a loving Education Insurance policy, or your insurance policy covers the cost of planning needs education for children, there is a heavy weight on your shoulders the costs of education are able to overcome them.

When you pay the premiums, your proverbial menyicil little by little for the future needs of your children. By the time they enter school age in accordance with the policy, sum assured will be out or be withdrawn. Funds from this insurance money will really help you when the children enter further education.

Fourth, to meet your needs in old age or the availability of retirement savings. By the time you were signed in the productive age, you can get the maximum income, and that in accordance with the contribution you make.

Over time, your age increased, and to the point you will enter retirement. At that moment, the premium you pay for retirement purposes will be able to help you in a sufficient variety of needs. You still receive sufficient funds for your needs from month to month.

Fifth, ensure that you get the extra income when you are dealing with a serious illness or fatal accident. The reality, no one ever imagined would experience things that are fatal, such as an accident or prolonged illness.

If that happens, and you have to protect life insurance, you can get protection against the risk of unexpected things. In every situation you experience, the insurance policy you hold can yield benefits of protection so that you get adequate funding during the treatment. Death, misfortune, can never predict his arrival.

The anticipation, you and your family need to get protection through life insurance products. The premium you pay may reduce your burden and the people you love when events / unexpected misfortune happen to you and your family in the future.


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Benefits Financial Insurance for Families

Life Insurance
Briefly life insurance is the provision of funds to protect or maintain the continuity of the family life of a loved one. If you are still naked and not married then it might be better if you buy health insurance (if there is no benefit from the company). Or maybe you can buy insurance for serious diseases or so-called critical illness insurance. With this insurance, if you are diagnosed, then you will get the money at once or before Sump, which can be used to fulfill your daily needs.

Determining Insurance
If you need life insurance for certain purposes, for example maintaining the investment in children's education costs, the calculation of the amount required sum assured becomes easier, at least 6 times you prepare from your gross income or 10 times net income. This value may be enough for some families but may also be low for some others.



Deposit insurance
Term life can be taken every year and extended in the next year or you can buy it for a period that you specify for example 5 years, 10 years, even 20 years. When you purchase an annual term insurance, annual premium costs will always rise. Because the insurance premiums to see your mortality probability will further increase with age. Whereas if you buy term insurance 10 year term, then the insurance company will calculate the average premium cost or flat for a period of 10 years.

As long as you pay the premium every month, your insurance protection will continue to apply. Meanwhile, if you fail to pay the annual premium, your insurance protection will be exhausted by the time limit (grace period) is very short-one months. This insurance has no cash value. That is, if you die at the specified grace period, then your family will receive the full sum assured.

When did Buying Insurance
Some people ask, what about the insurance products that provide cash value? Like the unit-link. Where you can select the types of investments that match what you want. Should I buy this type of insurance or insurance buy term and invest the rest?
When you compare these two things, buy term insurance and invest the rest will give better results if you consciously continue to invest. If you fail or postpone investment because of certain things, the results obtained it is not maybe a little more cash than the value given by the unit-linked products.

If you include the difficult to set aside funds to invest regularly every month, product unit-linked insurance can be an alternative. This product provides the benefits of this type of investment that we can select and protection be with him. By purchasing this product, every year (if you pay premiums every year) you'll be charged the same amount of premiums, in which some will be invested (the longer the greater portion of investment compared with protection) and others-cost protection and other administrative costs.


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Insurance Dictionary, Glossary-term understanding in Insurance

Insurance terms can be confusing for those who are unfamiliar with insurance or who have never bought an insurance policy before. Here, we have compiled a list of insurance terms commonly used to help you to better understand the policies and the benefits we offer.

Actuarial (actuarial).
The function of an insurance company to apply mathematical principles to the insurance, including calculate / calculate the list price of health premiums and ensuring the company financially.


Annuity (annuity).
Annuity provides a fixed annual income for life. Typically, some cash money invested in the future in order to produce the funds to obtain a steady income for life is.

Assignment (transfer of rights).
The transfer of part or all of the right to receive income derived from an insurance policy from a person or entity, to the person or other entity.

Automatic Premium Loan / Non-Forfeiture Loan (automatic premium loan / loan with no redemption).
If premiums are not paid for the time period and a grace period the policy has sufficient cash value, there is a provision specifying that the relevant amount of premium paid in advance automatically. The loan amount is still outstanding premiums may be charged interest.

Cash Value / Surrrender Value (cash value / redemption value).
The amount of money that will be received by the policyholder when he poured his life insurance policy that has the benefits of saving value.

Endowment Plan (aid programs).
This type of insurance program combines both protection and savings benefits. This insurance program pays cash benefits amount of money to the insured when the policy matures. The program also pays the amount on the insured dies, or if applicable, when the insured is a comprehensive disability and permanent, and if it happens at the policy expiration date.

Grace Period (the grace period).
Period of time after the expiration of the premium payment date falls where premium payments can still be done at no interest. During this period, the policy is still considered valid.

Investment-linked Plan (insurance program associated with the investment).
Premiums paid are used either to purchase insurance protection benefits as well as units in an investment portfolio. Unit price will depend on the investment performance of funds.

Maturity Date (due date).
The date agreed upon during which an insurance company paying some cash money.

Non-participating policy (a policy that is not included).
An insurance policy where the policyholder not included in company profits.

Paid-up Value (the value of payments in advance).
This provision gives the right to policyholders to stop paying premiums at a later date after the policyholders receive the cash value. Policies remain in force in accordance with the amount of insurance money that has been reduced in value.

Participating Policy (a policy that includes).
An insurance policy where policyholders participate in company profits.

Policy lapse (policyholders through time).
Termination of insurance as a result of not pay premiums.

Policy Loan (loan policy).
A policyholder who need cash for temporary period can apply to obtain a policy loan against the value of the coverage of the policy. Imposition of interest began to be calculated on the effective date of the policy loans.

Premium (premium).
Amount to be paid to obtain the desired insurance coverage.

Regular Premium Policy (regular premium policies).
A policy that requires regular premium payments, for example, monthly, every four months, every six months or yearly.

Reinstatement (re-enactment).
The process in which an insurer enforcing back a policy that has caused over time because they do not pay renewal premiums.

Rider (additional benefits).
Riders are additional benefits that can be included in a basic insurance programs, such as comprehensive insurance program (whole life plan) or a program of assistance (endowment). These benefits are designed to provide additional financial protection for less money.

Single Premium Policy (policy to pay premiums at all).
A policy that requires only one premium payment made in advance.

Sum Assured (the amount insured).
The amount of money insured security to policyholders.

Term Plan (limited-term program).
Types of such insurance program offers protection / life insurance protection for a limited period of time. The amount of money insured can only be paid if the insured dies, or where applicable, disability comprehensive and permanent expiration program ..

Underwriting (insurance).
The process of assessment / evaluation and classification of degree of risk associated with the insured candidates, and making decisions to accept or reject the risk.

Whole Life Plan (comprehensive insurance program).
Types of life insurance program offers protection / life protection against death or, if applicable, comprehensive disability and permanent, to the insured.


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What is Advertisement ?

Of course we all frequently see ads that are distributed by various media, both print media (newspapers, magazines, tabloids, etc.) as well as electronic media such as TV, radio and the Internet.
Then what are advertisement purposes?
And what are the types of advertisement?

Ads are one form of persuasive communications that are part of the marketing activity intended to persuade audiences to take advantage of goods or services. Many ads can be used to persuade to recognize the messages conveyed through advertising. Only persuasive communication in advertising that does not have the audience know exactly the source of the sender, the decisions they make, depending on how much influence or convincing communicator them. It required a planned analysis based on the rule of research, to measure how much the effectiveness of advertising messages through audience can influence decisions.


In the English language known by advertising that comes from the Latin ad-vere a means of passing thoughts and ideas to others, as well as understanding of communication. In France called reclamare which means shouting something repeatedly. While mentioning I'lan Arabs. The term in Arabic is that adopted by the Indonesian language to pronounce the word 'advertising'.

In ad perspective tends to emphasize the creative aspects and delivery of persuasive messages delivered through special media. Marketing perspective and an emphasis on advertising meaning as a marketing tool. Meanwhile, more pressing psychological perspective persuasive message.

Some views about the ads have been written by several experts, among others:
1. Liiweri, 1992:20 fully written that advertising is a communication process which has important strengths as a marketing tool to help sell goods or provide services, as well as ideas and ideas through certain channels in the form of persuasive information.

2. Kotler (1991:237) defines advertising as any form of non personal presentation, promotional ideas, promotional products goods or services by a specific sponsor paid. This means that in conveying the message, the communicator was specifically do so by paying the owner of the media or people who work at paying.

Although there are differences in terms of advertising perspective different but the bulk have the same principles in terms of advertising, where the ads contain six basic principles namely;
1. Any particular message
2. Conducted by the communicator (sponsor)
3. Done by non-personal
4. Delivered to a specific audience
5. In conveying the message is done by way of pay.
6. Delivery of the message, expects a certain impact.

Ad Types
To map the types of ads is not easy, because of one ad view other ads often overlap. Here are the types of ads that put forward by some experts with their point of view;
A. The types of ads based on the benefits (Kotler)
B. The types of ads by classification based on groupings (Richard E. Stanley)
C. Types of ads based on (Liliweri (1992):
1. The general standards of advertising and public service
2. Special ad is based on the division of ad types, such as:
a. Based on the medium used
b. Based on the commercial purposes and public services.
c. Based on field contents of the message.
d. Based on the product being advertised.
e. Based on the ads target

In practice the marketing activities is not only a good product necessary, appropriate pricing and orders (display) in an interesting place but needed better communication with consumers. One form of communication is the communication activities of persuasion, which involves sending communications (source) and receiver interact. Only persuasive communication in advertising that does not have the audience know exactly the source of the sender, the decisions they make, depending on how much influence or convincing communicator them. The effectiveness of persuasive communication is highly dependent on both the sender and recipient factors including the message that the message conveyed in advertising.


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Insurance

Insurance is one form of risk control is done by transfer / transfer risk from one party to the other party in this case is the insurance company.

The other explanation of insurance is a transfer of risk from the first party to another party. Controlled by the delegation of legal rules and the application of the principles and teachings that are universally adhered by the first party or other parties.
In terms of economics, insurance is a collection of funds that can be used to cover or pay compensation to people who suffered losses.

Insurance History

Insurance comes first from 4000-3000 BC Babylonian society known as Hammurabi agreement. Later in the year 1668 AD at the London Coffee House Lloyd's of London stands as a precursor to conventional insurance. Source of insurance law is positive law, natural law and the previous examples as culture.

Insurance brings social and economic missions with the premiums paid to insurance companies to guarantee the transfer of risk, namely the transfer (transfer) the risk of the insured to the insurer. Insurance as a risk transfer mechanism where the individual or business move some uncertainty in exchange for premium payments. The definition here is the uncertainty risk occurs or whether a loss (the uncertainty of loss).

Insurance in Indonesia started in the Dutch colonial period, associated with the success of the country's companies in the plantation sector and trade in Indonesia. To meet the insurance needs of business sustainability, of insurance required. The development of insurance industry in Indonesia had a vacuum during the Japanese colonial period.

What are the benefits of insurance?

Besides as a form of risk control (financially), insurance also has a variety of benefits that are classified into: the main function, secondary functions and additional functions. The main function is as a transfer of insurance risk, premium collection and fund balance. The secondary insurance function is to stimulate business growth, prevent loss, damage control, social benefits and the savings. While insurance is an additional function as an investment fund and invisible earnings.

Are all risks can be insured?

Not all risks can be insured. Risks that can be insured are: the risk that can be measured by money, the risk of homogeneous (the same risks and guaranteed by insurance), a pure risk (this risk is not profitable), particular risk (the risk of individual sources), the risk that occur suddenly (Accidental), insurable interest (the insured has an interest in the object insured) and the risks that are not contrary to law.

As we know one way of handling risk is to insure a risk to the insurance company. This method is considered as the most important methods in effort to cope with risk. Therefore many people who argue that the same risk management with insurance. Though the actual state is not the case.

Insurance coverage means the transaction, which involves two parties, the insured and the insurer. Where the insurer guarantees the insured party that he would get a replacement for a loss which may be suffered, as a result of an event which initially is not necessarily going to happen or who previously could not be determined when they occurred. The consideration of the transaction is that the insured is required to pay some money to the insurer, the amount of several percent of the insured value, usually called "premium".

The insurance has a goal and solution techniques vary, they are:

Risk Management

In human life, risk factor is something that would happen. Starting from the risk of loss of assets or property, the risk of illness, total disability until the risk of loss of life or death. The cause could be natural (due to illness) or due to accidents and ironically we never know when the risk will happen. However, people still can manage the risk by transferring risk to other parties (in this case the insurance company).

If we speak the risk of death we will immediately imagine life insurance. Yes every man must be experiencing, for those who have a family would want to give an assurance of protection that is relevant when called by his Maker so the family still run a decent life with food and clothing among other things continue to be fulfilled, the children still can go to school until they reach the highest level.

Life Insurance

Life Insurance is one instrument that can be used to transfer risk, where if there is a risk of death to a person then their heirs will get some funding so-called Sum Insured. In the life insurance industry in Indonesia today, the traditional type of insurance known as term life (term life); whole life (life insurance), endowment (traditional insurance with a combination of savings), as well as a life insurance policy or investment-linked unit-linked . Type of unit-linked insurance is very popular and almost all major insurance companies have these products and even some foreign insurance companies in Indonesia only sell unit-linked type products without traditional selling other insurance products. Unit-linked life insurance benefits in addition to providing life insurance protection, while also providing an opportunity to participate directly in investment, especially in mutual funds.

Unit Linked Life Insurance

These types of policies are favored by insurance companies and their policyholders (current), visible from the life insurance industry growth in the homeland of unit-linked premiums which are the largest contributor to many life insurance companies. This is a situation conducive to the insurance company because the product over the long term this will further accelerate the growth of RBC ratio (risk capital base) which is the ratio of capital to risk versus the minimum number required by the government through the Directorate General of insurance is 125%. Many insurance companies selling unit linked products will inevitably have a high RBC because insurance companies do not WARRANTIES cash value or investment value invested by the customer, the risk performance of investment funds into the customer's own responsibility.

This product is very practical because it allows customers and prospective customers. In these types of products customers need not have bothered to visit the company's two insurance companies and mutual funds investment management company that is an investment manager, because with this product and investment protection packed into a single unit. Customers are also relatively thin pockets can easily get the protection and investing as it can be done with the amount of the value of a relatively small investment. Many who accept the unit-linked investment value is only IDR 100 thousand per month and even less than that!. This product also has an investment of liquidity as adequate as far as can be taken by the customer at any time even after a certain period of investment value can be used to pay the basic premium, so the customer can leave the premium.

With the variety of the above facilities, a wise reader needs to know more in whether it was the best option? When compared with buying separate products (the insurance on one side with mutual fund investments on the other side), which can provide maximum benefit for us? Let us both further study.


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