Learn about the various life insurance policies available

Excuse me, Attitude Friend! Hi, how have you been? In the midst of this pandemic, I pray that you are all safe and sound. With the current pandemic, health care is unquestionably a top priority. But remember, bro, that health is crucial at any time, not just during a pandemic! but regardless of the situation, it is critical to maintain a focus on health. Whether it’s a critical illness or a fatal accident, the unexpected can strike our loved ones or us at any time.

Well, in order to prepare yourself financially for these eventualities, you can purchase a life insurance policy and collect the sum assured. The policyholder (insured) and the insurer (insurer) enter into a life insurance policy contract in which the insurer promises to pay the policyholder (insured) a predetermined benefit amount upon the insured’s death or during the insured’s lifetime (insured) based on the performance of the insurer’s investment portfolio. This policy will cover the insured’s financial losses in the event of the insured’s untimely death, total and permanent disability, or inability to work due to old age or longevity.

Depending on your situation, life insurance can be very helpful. Consequently, it’s important to be familiar with the various life insurance options available. Let’s take a look at the various life insurance options available:


  1.   LifeInsurancepolicy

Coverage under a term life insurance policy is guaranteed to last for a specific number of years. This insurance policy will only pay out if the following conditions are met:

Both conditions are met if (1) the Insured dies within the policy’s specified time limit and (2) the policy is active (in force) at the time of death.

If the Insured survives until the end of the policy’s term, the policyholder will be able to keep receiving life insurance benefits. There will be no further coverage provided by the insurance company if the policyholder does not renew the policy.

A few examples of term life insurance policies are:


Life insurance that guarantees a fixed death benefit for the duration of the policy’s term is called level term life insurance.

The death benefit on decreasing term life insurance policies decreases over the course of the policy’s duration. The policy’s benefits begin at an initial, set level and decrease over the course of the coverage period as per the policy’s specified method.

Increases in Term Life Insurance Coverage, c.

insurance that provides a death benefit that begins at a certain value and increases by a set amount or percentage at regular intervals during the policy’s term.


  1.   ThisWhole Life Insurance1.

Insurance has two distinguishing features: I it protects the policyholder for as long as the policy remains in effect, and (ii) it includes a savings component.


Coverage options for whole life insurance include:


a.This Traditional Whole Life Insurancetype of insurance provides permanent protection at a fixed premium rate (premium rate) that does not increase with the age of the Insured.

  1. Life Insurance for the Surviving Spouse

Second-to-die life insurance is a subset of combined whole life insurance in which policy benefits are not distributed until after the death of both policyholders. This premium for life insurance will be paid until the first Insured dies, or it can be continued until the second Insured dies, whichever comes first. Because of the high cost of estate taxes, this insurance is tailored to provide coverage for married couples.

c.This type of insurance, known as “joint whole life insurance,” provides the same protections and advantages as single-life “whole life” policies but covers two people under a single policy. It is also known as “first-to-die life insurance” because, upon the death of one Insured, the policy’s death benefit is paid to the surviving Insured and the policy expires.


  1.   Life Insurance Agency of Dwiguna (Endowment Insurance)

This type of insurance pays out a set amount regardless of whether the Insured survives until the end of the policy period or dies while the policy is in effect. The amaturity date of a joint and survivor life insurance policy is the date on which the policyholder, if the Insured is still alive, will receive payment of the sum assured from the insurance company. After a certain amount of time has passed or when the Insured reaches a certain age, the maturity date will occur.


  1.   Insurance Unit Link

insurance Unit linked insurance combines the financial security of traditional insurance with the potential growth of an investment portfolio. Paid premiums will be split between a “basic premium” used for insurance purposes and a “investment premium” used for financial growth. The Investment Manager or the firm’s in-house investment experts oversee the management of premium investments. Insurance protection and investment growth are both available to the insured through the purchase of a unit-linked. In Indonesia, life insurance firms are the most common providers of unit-linked products.


There’s a wide variety of life insurance policies available in Indonesia. You should keep in mind that learning about the different types of life insurance is a prerequisite to actually purchasing a policy. If you don’t want to be out of pocket for any unforeseen expenses, check with the OJK to make sure the insurance company you choose is licensed and regulated.

Read more: