Life insurance is not just for the elderly; everyone requires it. This is because life insurance pays payments in the amount of the sum insured/insurance compensation to the insured’s beneficiary/family/heir if the insured dies as a result of health issues, disease, or accident, and if the insured is a health risk.
For people who wish to have insurance and invest, unit-linked life insurance is a good option because it gives insurance and investment benefits. So you no longer have to manage to support and protect money separately.
In simple terms, Unit Insurance is a mix of two financial products: insurance and investment. A portion of the premium consumers will be dedicated to funding development or acquisition and protection.
Furthermore, because benefits may be added, unit-linked life insurance is adaptable. So yes, if you believe the benefits of protection are still insufficient, you can add additional benefits as needed.
The main benefit of the Unit Link Insurance product is the coverage benefit to protect consumers from an unexpected risk of financial loss caused by the risk of death. However, insurance companies provide not only essential protection, namely death, but also some additional benefits attached. This coverage is called additional or rider insurance, which requires consumers to increase premium payments to get these benefits.
Unit Link Insurance participation is marked by the insurance company’s issuance of a Unit Link Insurance policy. To maintain the continuity of the involvement, consumers must pay Unit Link Insurance premiums either singly or periodically (annually, quarterly, or monthly).
Some of the costs that you need to know and will be charged to the Unit Link Insurance policyholder are:
• Insurance costs, components of costs charged to consumers in connection with the coverage provided by the insurance company.
• Cost of policy acquisition (acquisition) includes, among others, the cost of medical examination, policy procurement, and printing of documents, remuneration/commission for employees and agents.
• Administrative costs and fees are charged with the policy’s administration.
• Fund management fees, fees charged to unit-linked investment assets owned by consumers for investment management.
• The cost of switching funds (switching) is a fee charged if the policyholder makes a transfer of investment fund allocation.
• Withdrawal fee, a fee that is charged if the consumer makes a partial withdrawal of funds in the initial year of participation.
• Top-up fee, the fee charged if the consumer makes additional premium payments to increase the investment value (top-up premium).
• Policy termination/redemption fee is a fee charged from the investment value if the consumer terminates/redeems the unit link insurance policy before a specific time limit is allowed.
Tips for choosing Unit Link Insurance
Make sure your insurance product has been verified safe. Understand the rights and obligations of the insured listed in the unit link insurance policy. Keep maintaining the use of data. Pay on time and don’t go into debt.
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