Understanding Insurance Unit Link and Sharia Insurance

We need to know that in today's many diseases that attack humans. from Colds, cough to deadly disease though. If we just let it go then you will find it difficult to protect your body from the risk.

Therefore the need for life insurance that can protect your health. So if in the future you experience worsening health and should be brought to the hospital, you do not need to think about the money to pay because it is borne by the insurance you follow.

And after the development of the era, there are companies that offer investment insurance Insurance services, which Insurance can double. That is protection on yourself and on the other hand can be used as your investment. This insurance is called UNIT Linked.

The Financial Planning Standard board says: "Unit Linked is an Individual life insurance policy that provides life insurance protection benefits as well as the opportunity to participate directly in investment management at any time the value of the policy varies according to the asset of the investment."

RISK
The risks faced by Unit linked holders are no guarantee of the contents of our assets. we need to know that the Linked Unit Insurance Policy gives the Policyholder the option to choose the type of investment and flexibility to move funds at any time in order to obtain investment returns from investments already in planting and overcome Inflation. And because the eel is very Customer oriented, then the investment risk is on the policyholder.

Characteristic of Linked Unit policy
1. Premiums paid by the policyholder are used to purchase the units concerned. The more the amount of premium paid by the policyholder,, the more units owned.

2. Unit Price will be announced by the company periodically. For example in daily form. But in reality now. Often the unit price will be issued in Monthly form. So you can find out the value of your unit linked insurance. Insurance companies in indonesia use 2 method of unit price. That is method of single unit price and sale price.

3. Method 1 uses a single Unit price. Companies usually calculate the cost of sales, insurance costs and administrative costs in advance by cutting from the premium costs that have been paid by the policyholder. In the form of percentage of premium or amount of money that can be charged at once or periodically

4. Method 2. Using 2 price (dual Price) ie Offer Price and Bid price

5. The premiums of each unit linked unit are broken into various components and all costs are categorized.

6. Elements of protection may take the form of life protection, disability, accident protection or health insurance.

7. The cash value is determined by the investment performance of the asset and this performance is represented by the unit price of the investment fund, and is not guaranteed.

8. The policyholder can generally add funds to the policy in accordance with the minimum amount specified. this means the policyholder can pay the premium by purchasing additional units of the funds in question which will be added to the number of units in the policyholder's account.

Type of Unit Linked Fund in Indonesia.
Unit Linked Fund is a set of funds contributed by buyers of unit linked programs. Unit linked funds are managed by investment managers of investment experts.

Funds will be invested in various investment instruments, namely:
1. Fund shares
2. Fixed or obsolete income funds
3. Cash fund
4. Mutual fund funds
5. Mixed funds

Type of Linked Unit Policy
1 1. Single Linked Premium Linked Policy
Where a number of premiums are paid by the insured first before insurance protection begins. In the mean as long term money or can be called with the mine and investment.

2 2. Policy Premium Unit Linked Premium
Premiums are paid on a verkala basis within a fixed period of time. This program is designed with the focus of insurance protection. The addition of premiums in accordance with the provisions of the company administration.

Comparison with traditional policy
1. Risk of Invetation
In Pilis Unit Linked Life Insurance, the value of the unit directly reflects the value of the fund's assets and this value fluctuates following the accomplishment. Thus the benefits and risks of the policy are directly insured by the policyholder.

2. Transparency
Policyholders can see the allocation of premiums for various expenses. the policyholder will receive an annual report describing the policy elements such as premiums, death benefits, interest, mortality costs, administration, and cash value development.

3. Premium
Unit Linked life insurance policy is more flexible, policy holder can change the amount of premium previously submitted. The taker of premium leave (not paying the premium within the specified time), can increase the amount of premium. and the insurance company has the right to vary the cost of the policy.

4. The benefits of dying
At the time of death, the policy without profit sharing pays the sum insured with a fixed amount in reducing the policy loan including the interest on the loan.

5. Investment Results
Unit linked investment results are directly linked to the performance of managed funds, depending on the expertise of the investment manager and market conditions.
Unit linked investment returns are not guaranteed, losses can occur as a result of poor fund management and vulnerable market conditions. The amount of money insured for life insurance is guaranteed.

6. Cash Value
The exchange rate of the policy with profit sharing is the gross cash value shown on the policy including the accumulated bonus until maturity date less the loan payable / auto loan premium payment including the interest on the loan.

7. Option of premium addition
Almost all Linked Unit policies allow policyholders to add premiums every time.

8. Investment Regulations
The insurance company must separate the Lined units' funds in the balance sheet. The provisions are not applicable to the life insurance policy. Investment of Linked unit funds on investment istrument allowed and the risk is ZERO.

Benefits of Linked Unit Policy
1. The potential for high growth of investment returns
2. Liquidity
3. Expertise in investment capital.

SHARIA SHEAR INSURANCE
In addition to traditional Insurance and Unit Linked there is one more insurance is in demand by many of the predominantly hardened Muslim population. And in Indonesia itself is a predominantly Muslim country, so it becomes a very profitable market for sharia insurance companies.
Sharia insurance and modern insurance have the same goal, that is managing or mitigating the differentiating risks is how to manage them. Management at risk if the sharia insurance will be spread on all who cursed the insurance. This insurance adheres to the principle of helping please by dividing the risk of all participants of insurance.

Sharia Principles.
1. The principle of law
Islamic law has a dual purpose of spiritual interest and social good. Islamic policy encourages compliance with rewards. Encourage compliance with penalties in the world and in the later days.
Measures are taken to ensure fairness in traksaksi and to avoid improper self-enrichment. Sacrificing others, usury, and others.

2. Transaction or Contract
The insurance contract is deemed valid if
a. Legally legitimate the person making it
b. Eligibility of the problem
c. Approval is a contract.

The contract is deemed invalid if:
a. There is an element of Gharar :: uncertainty factor (not transparent)
b. Maisir :: the existence of speculation, gambling or the nature of the chances that appear as a consequence
c. Riba :: self-enrichment practices in a way that is not true, monetary gain
d. Haram :: there are things that are included in the category of prohibition in Islam, whether in the taking, the results and how to get it.
e. Bathil :: Transactions must be free of illegal acts, cheats and fraud.

3. Islamic Economic System
Sharia life insurance embraces the Islamic economic system introduced by the Prophet Muhammad, such as mudharobah (profit sharing or loss)

Background of Sharia Life Insurance
In the lateness of the product needs that refer to the views of most of the great scholars and Islamic economists that the contract of modern life insurance is not in accordance with the principles of Islamic law (syariat) or contain things that are forbidden in Islamic law.

The basic rules of Sharia Life Insurance.
1. Life insurance contract consists of akad al'mudharobah for commercial purposes, akad Tabarru (grant) for the aspect of the risk in the liability as previously mandated that the nature of membership.
2. Funds paid by participants remain participants either individually or collectively.
3. The investment portfolio of the company's shareholder funds as well as the participant's funds avoids any illicit transactions.
4. The profit gained by the company is divided between companies and participants according to al'mudharabah
5. The existence of syariah supervisory board consisting of scholars of legal experts who function to oversee the management, product, finance and investment, sdm and marketing to comply with the provisions of sharia

The benefits of life insurance Sharia.
Sharia life insurance can be an option for Muslims who want a product that is in accordance with Islamic law. Sharia life insurance products can also be an option for non-believers of Islam who view the concept of shari'a is fair for them.


Shariah is a principle or system that is universal, ie the benefits can be used by anyone who is interested, mutually beneficial and human.

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