Articles by "Life Insurance"
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Information, Tips, Tricks About Insurance
Understanding life insurance and an example - In KUHDagang who set about life insurance, setting it very briefly once and only consists of seven (7) of article i.e. Article 302 up to Article 308.

Article 302 KUHDagang as basic life insurance, which States that:

"If someone can be for purposes of a person concerned, dipertanggungkan, both for during his life the soul, good for a time specified in the agreement."

Understanding Life Insurance According to Experts and Examples

Understanding life insurance as contained in the foregoing are more stressed to a time specified in the life insurance. As for the time during her life is not defined in the Treaty, this means that the legislation does not expressly give the possibility to hold life insurance it during his life for interested parties.

Aside from the definition/understanding of formyl contained in undangundang, there is also the opinion of legal experts also provide definitions of life insurance. According to Djoko Prakoso and I Ketut Murtika cited from the opinion of Molenggraf argues that,

"Life insurance in a broad sense to load all agreements regarding the payment of a certain amount of capital or interest, which is based on the possibility of life or death, and instead it's premium payment or both with the way hung on his life or the death of a person or more. "

Then, according to Prodjodikoro, on article Wirjono 1a Chapter I 1941-101 Staatsblad, understanding life insurance as follows:

"Life insurance Agreement is the agreement about payment of money by the favour of the premium and related to the life or death of a person, including an insurance agreement with the understanding the money back//note that the Treaty does not including accident insurance agreement. "

While according to H.M. N Purwosutjipto,

"Life insurance coverage can be interpreted as the soul is a reciprocal agreement between the cover (the taker) of insurance with the insurer with which the insurance cover during the course of committing yourself to pay premium money to coverage the insurer, while the insurer as a direct result of the death of the person who is the soul of dipertanggungkan or lampaunya have a shorter period of enforced by binding themselves to pay a certain sum of money to the person designated to the insurance cover as consumer demand. "

Then according to Volmar, mentions that the term soul coverage sommen verzekering, argues that:

"Widely sommen verzekering it can be interpreted as an agreement where a party is committing itself to pay a sum of money at once or periodically, while the party is committing itself to pay a premium and the payment is subject to life or the death of a particular person or more. "

Santoso Poejosoebroto gives the sense that insurance as follows,

"Insurance in General is a reciprocal agreement in which the insurer by receiving premium committing yourself to provide payments to the insurance taker or an appointed person, because the events are uncertain. Mentioned in the Treaty, either by the insurance or indicated to suffer losses caused by other events, as well as due to the events of yesteryear regarding life and health. "

Life insurance is in fact a form of collaboration between the people who avoid or at least reduce the risk caused by the risk of death (which is bound to happen but it is uncertain when the occurrence), the risk of the old days (which would be occur and can be estimated when the occurrence, but not sure how long) and the risk of accidents (which is not certain to happen, tetpi is not impossible).

Life Insurance Companies
Life insurance companies compete with one another in providing insurance protection. In addition, many life insurance products that contain elements of investing, so that life insurance companies will also have to compete with other financial institutions that provide investment instruments (such as banking) and with direct investment (such as market Bursa).

Types of life insurance policy.
The policy issued by life insurance companies can be classified in four main types:

a. pure insurance protection against risk of death
This form of insurance in the form of specific time life insurance (term life insurance) that provides the benefits of death without fertilizing the funds, so that it does not have the elements of investment. So, this insurance policy provides a pure asuansi against the risk of death. Premiums charged by insurance companies remain unchanged, but only for a specific period of years.

Then, polisnya can be updated on each end of that time period, but usually with a higher premium rate.

When the insurance company issuing this type of policy, the company knows the amount of liability to be paid, even though it does not know when to pay it. But with the use of actuarial data, timing (timing) liability can be forecasted to taste for a group of insured individually. Prmi assigned insurance company usually in such a way, so whatever happened to interest rates, the company will have sufficient funds to meet its reply when the policyholder dies.

b. a package that consists of life insurance protection and investment vehicle (insurance policy/insurance)
This form in the form of whole life insurance (whole life insurance) policy in two respects: (a) provide a payment of a certain amount of sauatu on the death of the insured, and (b) fostering the cash value that can be borrowed for policyholders. The first facet is in terms of insurance coverage – in terms similar to those given certain time insurance. The second facet is in terms of the investment due to polisnya nurture, and at all times have the amount paid for insurance companies if policyholders end polisnya. Policyholders have the option to borrow with the assurance of the policy, and the amount that can be borrowed is called loan value (loan value). Loan rates the Fund set out in the policy.

Universal life insurance (universal life) is poduk whole life insurance was created as a response to the problem of the standard insurance policy for a lifetime. Policyholders pay a premium to obtain insurance protection, and by paying a separate fee can make an investment in a competitive means of credit under market levels than given in a lifetime insurance policy standard. For policyholders, the advantages of this investment alternative than direct purchases of securities for which it is the suspension of a tax on interest earned. The risk for the insurer accepted is that the results are not competitive with the other insurance company which resulted in policy left daluwarsa (variable life).

Life insurance variable (variable life) is a process of lifelong insurance which provides benefits of death that hung over the market value of the portfolio of the insured at the time of death.
Insurance companies invest premiums in stocks, because that policy is also called polis connected equities (equity-linked policy). Although the sum assured of death are variable, but given the minimum death benefit that is guaranteed by the insurer. The risk of the insurer concerning results is smaller than its competitors, so many policies that left daluwarsa (time-lapse). In addition, the insurer also faces the risk that the results obtained over the investment portfolio of the insured is less than the minimum sum assured guarantee.

c. life insurance insurance against old age, particularly in the form of pension plan
Insurance against the risks of life i.e. asurasni inhabitants not only took away the dead, but also if the insured continues to live, its shape in the form of anuiti (annuities), namely periodic payment on a regular basis by an insurance company to a policy holder for a limited period or for life. Polis anuiti classified two types namely contingency policy and contingency policy for non-residents. Examples of contingency policy soul: a person who ceases to work with a number of particular wealth which will be expanded during the rest of his life. It will be difficult to know the old life, but life insurance companies have a statistically average length of life of a group of people, so as to estimate the life expectancy is more accurate, and can offer a fixed anuiti for the rest of his life.

An example of a non-contingency insurance policy is purchased anuiti polis insurance company losses to give sum assured to tertanggungnya. In this case, someone got hit by a car and as a result became disabled so can't work again for a lifetime. Insurance company losses buying life insurance policies from the company to pay anuiti to replace the loss of insured earnings.

d a pure investment-oriented Policies.
The investment guarantee agreement (guaranteed investment contract) or income guarantee agreement (guaranteed income contract/GIC) is prduk, where pure investment life insurance company, upon payment of a single premium, pay the amount of the principal and a certain level of annual credit during the period of the investment, all of which paid pd due date.

Example: 5-year GIC Rp 100 million,-with 10% credit rate, means that at the end of 5 years, the company will pay the life insurance policyholders amounting to Rp 100 million, Rp-x 1.105 = Rp 161,051,000,-. Actually, the guaranteed insurance companies is the level of the debt, not the number of its principals. The risk that the insurer is facing is that the results of the top portfolio that supports its assets is lower than the tingakat promised.

Investment. In principle, the life insurance company investments are long term. Therefore, most of the funds allocated in bonds long-term debt caused by the properties of the liabilitinya. Most of the life insurance policy based underwriting with fixed interest rates that will be paid to pemegnag insurance policy after a fairly long period of time (10 years or more). Long-term bonds is a logical investment vehicle to compensate for the period liabilitinya.

Example of a life Insurance Company in Indonesia
The following are some examples of life insurance companies that have been listed in the Indonesia life insurance Association (AAJI).
-BNI Life
-Jaya Bumi Asih
MNC-Life Assurance
Life Insurance-FWD
Life Insurance-AXA Financial
-AXA Life Insurance
-AXA Mandiri
-Ace Life Assurance
-Life insurance 1912 Bumiputra
-Bakrie Life
-Life Insurance Alianz Life Indonesia
Information, Tips, Tricks About Insurance
Know The Contents Of Your Life Insurance Policy
Many people who have insurance but have forgotten to read the policy. Whereas polis are legal documents that formed the basis of the customer's relationship with the insurance company. In case of dispute, the reference is the provision in the policy.

Did You Know the Things That Must be Read in a Life Insurance Policy

It has become a habit that insurance buyers don't read policy. His reason is because of his thick, his writing is too small, and full of legal terms. The habit unwilling to read the policy can cause problems in later life especially when filing a claim.

At the time the claim is rejected, the customer does not usually receive and feel cheated. However the customer can not do anything because the insurance perusaan still work based on policy. By law, the position is very strong because all insurance are already described in the policy.

Things that must be Read in a life insurance policy
Not a problem at a later date, should the owner of a life insurance policy compulsory study and read the policy. Policyholders also are required to understand the rights and responsibilities that you will get when buying life insurance that you have selected.

The following 6 mandatory read in life insurance policy:
1. The right to Study Polis

Many policyholders who did not know that the insurance companies actually give time to the customer to read first, and if the objection can cancel the policy without penalty (the entire premium money is being restored).

There are provisions for learning the ÔHak PolisÕ that the customer get 14 calendar days from the date of issuance of the policy to read the policy. In this period, the customer can cancel the policy without incurring fines and money premiums refunded everything.

Take advantage of this right with their best, make sure that the agent also provides policy documents as soon as possible since it was approved.

2. Data Holder and the insured

Because the policy is a legal document, the customer must ensure the data is accurate and properly insured. This is very important, because when the later calamity and would do claim, data in the policy which became a reference for the insurance.

Don't get the wrong data. If that happens, the process of payment claims will be hard to do. Therefore, in addition to filling in the data carefully and accurately in the initial filing, rechecking in polis is also not less important. By rechecking will certainly help ensure the accuracy of the data.

3. The benefits of protection insurance

Make sure the insurance benefits listed in the insurance policy is in compliance with the desired. Regarding benefits, important things of note are:
The magnitude of the sum assured (UP) for the protection of inhabitants. This is the value of money which would be received by the beneficiary if the insured suffered a disaster.
The magnitude of the sum assured (UP) for the protection of inhabitants. This is the value of money which would be received by the beneficiary if the insured suffered a disaster.
Period of coverage. To the insured in the insurance provides protection to what age.
How do claims about documents required and limits the time of filing. For example, insurers stipulate that claims submitted in writing, accompanied by the original files as listed in the insurance policy filed within 90 days from the time the insured dies or the end of the protection period. Do not pass 90 days because it would be rejected by insurance.

4. The provisions of the Premium

The premium is concerned, the important things you should know are:
The amount of the premium payable, payment period (monthly, six monthly, or yearly), the chosen method of payment (transfers, account debit, or credit card) and the currency of payment.
Conditions if the late pay a premium. Usually given grace period for 1 month since the premium payment deadline, where within this period even though premium has not been paid, but still effective protection (a claim still accepted). Off of the grace period, the policy lapse, where by that time if the calamity was not protected by insurance.
The recovery policy is dead. To revive a dead policy, without the need to restart the process again, called recovery. Time limit needs to be seen and the requirement to perform recovery if the policy is dead.

5. terms of Exception

These are the terms that govern things anything that causes a claim could be rejected, concerning, among others:
Suicide policy before the age of 2 years.
Criminal action.
Live execution of a death sentence by the Court.

6. Discounted Costs

Discounted cost is important because the cost of reducing benefits to policyholders, especially for those who take the insurance unit of the link, as it contains elements of investment. Many costs that need to be observed, among other things:
The Cost Of Maintenance. This premium imposed on the basis of which the magnitude is based on a certain percentage, which is the commissions to agents and insurance companies
The Cost Of Basic Coverage. This is insurance costs are calculated based on age, gender, and the basic sum assured. This fee will be deducted each month from the units on the value of the policy.
The Cost Of The Changes To The Allocation Of Investment Funds. There is no fee for 4 times the first transaction in 1 year policy and charged Rp50 thousand that will apply to any subsequent investment fund allocation changes made in one year for the same policy
Monthly Administration Fee
Fund management fees (per year), calculated from the percentage of investment funds-

From now on never not read Your life insurance policy. Though already read proposals, you remain obligated to read the policy. Because the policy is a legal document that became the basis of the agreement with the insurance company.
Information, Tips, Tricks About Insurance
Life insurance quotes are most evident at the moment is the sales bank. There are 6 things to note when you will buy life insurance through banks.

The Bank has a large customer database. Virtually everyone has an account and an ATM at this time.

This database is target market ' fertile ' create selling financial products.

6 It is obligated to Note When Buy life insurance at the Bank

Insurance is one of them. Why?

the customer had the money in the bank, the main requirement to be able to buy a product;
data on the bank's complete and update;
the customer relative already know financial literacy, financial products.
That's why you can look upon the bank in cooperation with the insurance company. They form the Bancassurance.

In Bancassurance, the bank provides the target market, while selling insurance products.

When it comes to bank branch offices, customers now often directly approached by the financial consultant who offers insurance protection.

Because the agent had a negative connotation, the term replaced a more sleek and prestige, financial consultant.

But the essence of his work is the same, prospects and sales of insurance.

Insurance sales via banking this is a breakthrough. Helps insurance companies enhance penetration into society.

But on the other hand appeared a lot of complaints from customers who buy insurance via the bank.

OJK never mentions the high complaint that goes to them for insurance products unit links (Note: the unit link insurance products are the most widely sold through banking).

Become our duty to be careful – heart, so that products purchased according to your needs and not detrimental.

What is the correct premium is being restored it profitable? What are the risks?

What are the things to note when accepting an offer of life insurance through banking?

1 the insurance is not a Savings

Don't ever believe that it is the insurance savings or deposits.

Insurance is not a savings. Insurance is not a deposit.

The perception of most banking clients are all the products offered at the branch bank is like a deposit or savings.

No guarantee against deposits from the Government. So there may be a loss. To place a deposit of 1 million, then it will receive 1 million plus interest.

The thing is, there's no guarantee insurance from the Government. Insurance of financial products is not guaranteed.

The funds you place on the very insurance could be reduced. Premiums paid could not return.


Because the funds placed in insurance (link units) is an investment that has risks. The value of his money could go up but could also go down depending on the performance of the selected investment instruments.

There is no guarantee that the money saved in insurance is definitely back.

There is a risk.

This obligation is understood when buying insurance.

Insurance is not a savings. Insurance is not a deposit.

2 the funds cannot be withdrawn

What is the purpose of people putting money in the bank? One can withdraw funds at any time.

The same mindset when buying insurance. They think that the premiums paid to the insurance can be pulled anytime during.

The thing is, the insurance premium cannot be withdrawn at any time.

Only a small part of the funds already deposited insurance to be withdrawn. In fact, if the withdrawal is made at the time of the initial membership, no funds can be withdrawn altogether.

Payment of the premium is used for three things:

Paying a Commission agent and the insurance company. This portion is big on the first five years
Pay the cost of insurance. This is a cost to get protection. This fee will be increased age and if not paid then the insurance protection stopped
Investments that are placed according to the selected financial instruments. These deposits can be withdrawn later.
Of the 3 things above, You can see that most investment deposits bontot position, so that the new funds withdrawal can be done after a few years.

Withdrawal then only will be if the investment return delivers great results.

If the return is bad, the money cannot be withdrawn.

3 Insurance Investment there are Risks

No Free Lunch!

There is no free lunch.

If you want a high profit, the risk is definitely higher.

Therefore, if there are offering insurance products with the lure of higher profit from savings or deposits, you have to be careful – heart.

Ask the seller's agent, what the risks are. How potential losses. If your money can be lost entirely.

If the dealer says, the risk is the same as savings or deposits, with higher returns, you have to be alert because the explanation is not correct.

In investments, the risk is closely related to the profit (return). The high profits have a high degree of risk.

"High Risk, High Return. Low Risk, Low Return "

We need to know that most premium placed by the insurance to the instruments which have a higher risk of savings or deposits, i.e. stocks, bonds, bonds and others – other.

So, when invest via insurance, you should be prepared with risk. The risk that money or your premium is reduced in value.

If it's not ready, don't be bought its products.

Buy the product when you are ready to face the risks for the sake of greater profits.

4 there is no Free Premium

There's never been a visitor tells the story that he was offered a premium cashback.

He said, the agent explained that the premiums will be returned so that the benefit of the participants.

What a sweet promise of this agent is correct?

It is true in a few years, participants can take the money premiums already paid. But, does that mean the insurance company mengembalikkan premiums to participants.

It is not.

Then, it's money where?

As already mentioned earlier, the premiums were paid participants allocated to protection soul and investment.

The important thing to grasp that premiums could be taken back it is money the participants themselves. It's your money.

It's not the money from insurance companies.

So, you give up (part) of the premium for managed insurance companies into investing. Tsb investments could profit, could lose out.

If the return on investment is profitable, the customer can take the results of investments, may also pay a premium for the next menalangi.

That is why, the insurance customer link units after a few years it could no longer pay a premium (premium on leave) because the premiums already paid by cutting from the results of its investments.

So, if You sort by agent, premium-free after 10 years.

That means, you still pay premiums, it's just that the money is not taken from your bags, but from your investment savings deposited in an insurance company.

What if the results of investments plummeting?

The client can't pull for the premiums.
There is not enough funds to pay the premiums. The customer must still pay a premium if it is to continue its protection.
So, no free premium name. Fixed premiums paid from the customer's money. Only source is all different.

5 Don't Buy Insurance by phone

We do not recommend purchasing insurance by phone.

Check out this blog: Reader comments

"Morning Sir, suamj in tawarin kmrn month a * * m * * * * * * by phone and then husband agreed to join the family with premium 2.3 m a month. MK. promising policy will send a reply hrs d d read and sign by the husband. TP fact until early pendebetan insurance auto debit account with d d DND indeterminate dtg policy account. Finally the husband call for immediately stopping the insurance a ** m **** **. Krn yg tdk suspicions give rise to Nice Dr. first. Where will policy d send but tdk in kirim2 until pendebetan in the account. "

Insurance it is not a simple product. Many clauses, provisions need to be well understood by the participants.

Read the policy document alone is not easy. Need to read slowly – slowly and repeatedly in order to understand the contents.

Let alone understand via the telephone, almost impossible.

6 don't buy Rush – Rush

Insurance it is not an easy financial products. Many judgments, many of the terms and conditions. It should be understood properly before buying.

Hurry hurry – do not buy. Better slow than fast but true but wrong so detrimental later.

If you don't understand ask to people who understand, find info on the internet or a consultation with a financial planner

Seek a second opinion.


Insurance is an important part of financial planning. Compulsory insurance protection owned everyone.

Bank deals are the way sales are rampant at this time. That's good because it will increase the penetration in the community.

However, as consumers, we need to understand correctly what we will buy. That way, you will avoid buying the wrong product.
Information, Tips, Tricks About Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank – one of India’s foremost financial services companies- and Prudential plc – a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. It began its operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

Profile of ICICI Prudential Life Insurances Company Limited

ICICI Prudential has been voted as India’s Most Trusted Private Life Insurer for three consecutive years by the Economic Times. ICICI Prudential has retained its position as the number one private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

As regards the distribution of ICICI Prudential Life, It has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with 2,100 branches (including 1,116 microoffices) and an advisor base of over 290,000 as on December 31, 2010. The company has 18 bank assurance partners having tie-ups with ICICI Bank, Jalgaon People Co-op Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank etc.

Objectives of the Unit
To be the dominant Life, Health and Pensions player built on trust by world-class people and service ICICI Prudential Life Insurance company aims to achieve by; 
(i) Understanding the needs of customers and offering them superior products and service; 

(ii) Leveraging technology to service customers quickly, efficiently and conveniently; 

(iii) Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders; 

(iv) Providing and enabling environment to foster growth and learning for its employees with transparency.

The success of the company depends upon values – Integrity, customer First, Boundary less, ownership and passion. Each of the values describes what the company stands for the qualities of its people and the way company work.

The company believes in redefining and reshaping the sector. Given the quality of its parentage and the commitment of its team, there are no limits to its growth.

Organizational Setup & Pattern of Management
As regards Management pattern of the ICICI Prudential Life Insurance Company Limited, the Board Comprises of reputed people from the finance, industry both from India and abroad. The Board consists of one Chairperson and nine Directors as on 31 March 20101. The Board carried on its activities with the help of different six committees through 1918 officers in 1726 various locations as on March 31, 2010. The Board of Directors is responsible for overall corporate strategy and other board related matters. 

The Managing Director oversees implementation of strategy, achievement of the business plan and day to day activities and operations related issues.
Information, Tips, Tricks About Insurance
The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance company in India and also the country’s largest investor. It is fully owned by the Government of India. It was founded on Sept 1, 1956 with the merger of more than 200 insurance companies and provident societies. 
Profile of Life Insurance Corporation of India

It has its headquarter in Mumbai, the Life Insurance Corporation of India currently has 8 zonal Offices and 109 divisional offices located in different parts of India, 2048 branches located in different cities and towns of India along with Satellite Offices attached to 50 Branches and has a network of around 1.4 million agents for soliciting life insurance business. 115966 employees were working in the Corporation on March 31, 2010.

At present, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7% of India’s GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of Rs. 459 million has grown to 25000 servicing around 180 million policies and a corpus of Rs. 8 trillion. The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. The slogan of LIC is “Zindagi ke saath bhi, Zindagi ke baad bhi” in Hindi. In English it means “with life also, after life also”.

Objectives of the Unit
The broad objectives of LIC include; 
(i) Its business is spread widely and in particular to the rural areas and to the socially and economically backward classes with a view to reach all insurable persons in the country and provide them adequate financial cover against death at a reasonable cost; 

(ii) LIC maximizes mobilization of people's savings by making insurance linked savings adequately attractive; 

(iii) It bears in mind, the primary obligation to its policy holders whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds are used to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return; 

(iv) It Conducts business with utmost economy and with the full realization of the moneys belong to the policyholders ; 

(v) It acts as trustee of the insured public in their individual and collective capacities; 

(vi) It meets the various life insurance needs of the community that would arise in the changing social and economic environment; 

(vii) It involves all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy; (viii) It promotes among all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

Organizational Setup and Pattern of Management
As regards management of the Corporation, It consists of one Chairman, three Managing Directors and nine Directors as on March 31, 20101. The Corporation carries on its function with the help of executive committee, investment committee and Building Advisory committee very efficiently. 

As on 31st March 2010, there were 8 Zonal offices located at Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Kanpur, Bhopal & Patna. There were 109 Divisional Offices, 2,048 Offices and 1,004 Satellite Offices. Divisional Offices monitor and control the operations. Branch Offices procure business and are responsible for all customer interface transactions. Satellite Offices also procure business and are responsible for immediate customer services required.
Information, Tips, Tricks About Insurance
Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth. All good life insurance companies have huge funds, accumulated through the small amounts of premium of individuals. 

Role of Insurance in Economic Development and Advantages of Life Insurance

These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business. The private insurers in India are new and have accumulated funds equal to about one-eighth of the LIC of India. But even their investments in the various sectors and contribution to the country’s economic development, would be of similar proportions.

A life insurance company’s funds are collected by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the policyholders. 

The management of life insurance companies are required to make all its decisions in ways that benefit the community. This applies also to its investments. That is why successful insurance companies would not be found investing in speculative ventures. Their investments, as in the case of the L.I.C, benefit the society at large.

Apart from investments, business and trade benefit through insurance. Without insurance, trade and commerce will find it difficult to face the impact of major perils like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory, financed by it, is reduced to ashes by a terrible fire.

Advantages of Life Insurance
Life insurance has no competition from any other business. Many people think that life insurance is a means of savings. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past plus interest. This is so in a fixed deposit in the bank, in national savings certificates, in mutual funds and all other savings instruments. 

If the money is invested in buying shares and stocks, there is the risk of the money being lost in the fluctuations of the stock market. Even if there is no loss, the available money at any time is the amount invested plus appreciation. In life insurance, however, the fund available is not the total of the savings already made, but the amount one wished to have at the end of the savings period. 

The final fund is secured from the very beginning. One is paying for it over the years, out of the savings. One has to pay for it only as long as one lives or for a lesser period, if so chosen. The assured fund is not affected. There is no other scheme which provides this kind of benefit. 

Therefore life insurance has no substitute. Life insurance provides advantages as; 
(i) In the event of death, the heirs can collect the money quicker, because of the facility of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund, etc.; 

(ii) There is a certain amount of compulsion to go though the plan of savings; 

(iii) Creditors cannot claim the life insurance money. They can be protected against attachments by Courts.; 

(iv) There are tax benefits, both in income tax and in capital gains ; 

(v) Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy; 

(vi) It is possible to protect a life insurance policy from being attached by debtors. The beneficiaries' interests will remain secured; 

(vii) Life insurance is the best possible way for family protection; 

(viii) Insurance is the only way to safeguard against the unpredictable and unavoidable risks of the future; 

(ix) The value of human life is far greater than the value of property. Only insurance can preserve it. ; 

(x) Life insurance is better than any other savings or investment instrument, in terms of security, marketability, stability of value or liquidity. ; 

(xi) Life insurance enhances the existing standards of living. Life insurance helps people live financially solvent lives and (xii) Life insurance perpetuates life, liberty and the pursuit of happiness.
Information, Tips, Tricks About Insurance
Insurance business can be divided into two broad categories, life and nonlife. Life insurance is related with making provision for a specific event happening to the individual, such as death whereas non life is more commonly concerned with the provision for a specific event which affects a property, such as fire, flood, theft etc.

Types of Insurance Life Insurance and Non Life Insurance

According to the U.S. Life Office Management Association Inc. , life insurance provides a sum of money if the person who is insured dies whilst the policy is in effect.

Life Insurance
It refers to the making contracts of insurance upon human life including any contract whereby the payment of money is assured on death or on the happening of any contingency to the dependent on human life and any contract which is subject to the payment of premiums for a term and shall be deemed to include; (i) The granting disability and double and triple indemnity accident benefits, if so provided in the contract of insurance; (ii) The granting of annuities of human life; and (iii) The granting of superannuation allowance and annuities payable out of any fund applicable solely to the relief and maintenance of the person engaged or who have been engaged in any particular profession, trade or employment or of the dependents of such persons.

Non Life Insurance
It includes conventional classification of insurance which includes : (i) Fire insurance (ii) Marine insurance and (iii) Miscellaneous insurance (accident); whereas Modern classification of General Insurance includes; (i) Insurance of person; (ii) Insurance of property; (iii) Insurance of interest; and (iv) Insurance of liability.

Different Risks
Risks are classified in various ways;
1. One classification is based on the extent of the damage likely to be caused. It covers (i) Critical risk which creates the bankruptcy of the owner; (ii) Important risks which may upset family or business finances badly, requiring a lot of time to recover and (iii) Unimportant risk refers to less damaging risks, like temporary illness or accidents.

2. Another classification is between financial and Non-Financial risks. Insurance is concerned with only financial risks.
(i) A third classification is between Dynamic and Static risks. Dynamic risks are caused by perils which have national consequence, like inflation, calamities, technology, political upheavals etc. static risk are caused by perils which have no consequence on the national economy, like a fire or theft or misappropriation. Dynamic risks are less likely to occur than static risks, but are also less predictable. Static risks are more suited to management through insurance.

4. Fundamental risks are those that affect larger populations while particular risks affect only specific persons.. Life Insurance business deals with particular risks.

5. Another classification is between pure risks and speculative risks. The later are in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, while a pure risk is not so. It is more in the nature of an Act of God. Insurance deals with only pure risks and not speculative risks.

Social Security
When the bread earner dies, to that extent, the family’s income reduces. The economic condition of the family is affected, unless other arrangements come into being to restore the situation. Life insurance provides such an alternate arrangement. If this did not happen, another family would be pushed into the lower strata of society. The lower strata create a cost on society. Poor people cost the nation by way of subsidies. Poor people also cost by way of larger growth in population, poor education and vagaries in behaviour of children. Life insurance helps to reduce such costs. In this sense, the life insurance business is complimentary to the Govt.’s efforts in social management.

In India, Article 411 requires the States, within the limits of its economic capacity and development, to make effective provision for securing the right to work, to education and to provide public assistance in case of unemployment, old age, sickness and disablement and in other cases of undeserved want.  Part of the Govt.’s obligations to the poorer sections is met through the mechanism of life insurance.
Information, Tips, Tricks About Insurance
The cause of death was denied life insurance - Life insurance is a financial program that is widely used in the community, in particular the head of the family, to guarantee his family's finances. These insurance funds will be given to the beneficiary when insurance participants experienced an accident that caused his death or total permanent disability so that it can no longer earn a living for their family members.
The Cause of Death Was Not Borne of Life Insurance

The amount of the sum assured is paid by the insurance company are not the same, all depends on the amount of premiums paid by participants of insurance as well as a few other things. This is very useful to have insurance, especially for beneficiaries who are financially dependent entirely on participants of the insurance.

On any insurance products including life insurance, all the terms and conditions will be stated in the insurance policy. This policy is typically composed of various important documents, and contains extensive information that binds the parties (participants and insurance company) to comply with all regulations set forth in the policy. One of the things that are set in the policy that is the leading cause of death in the end make the insurance policy was rejected and the insurance companies no longer have the obligation to pay the sum assured, among other things:

Disease including pre-existing condition
If the participant is already in the diagnosis or have symptoms of a disease and occurs before the validity period of the policy, then the rest of these diseases will be included in the conditions of the pre-existing condition. If at any time the participant died due to this disease, then declared void, insurance policy or insurance company has no obligation to pay the sum assured on heirs left.

The death penalty
If insurance participants died of a death sentence being dropped by the courts on the participants of the insurance.

Insurance participants who died of suicide or suffered permanent disability total due to attempted suicide will not be entitled to sum assured.

Do the crime
Participants who experience the total permanent disability or death while doing criminal acts in any form and against anyone indirectly will be disenfranchised got sum assured company.

Participants involved in the activities of the military official, or a variety of other war crimes such as riot, civil war, riots, and other similar actions will cancel the insurance policy.

Plane crash
Participants who died from a plane crash in addition to commercial aircraft (such as military aircraft, private aircraft).

The use of illegal drugs or alcohol
Participants who died due to the use of illegal drugs (Narcotics) or due to consume alcohol.

Natural disasters or the reactions of atomic nuclei
Participants who died from natural disasters in any form and includes if exposed to the reaction of atomic nuclei.

Participating in sport
If the participant died while participating in extreme sports (parachuting, rock-climbing) or other sports (diving), either in the form of a match or not.

Accident before the expiration policy
Participants died of any cause and occurs before the policy took effect.

Mental disorders
Participants experience a mental disorder and finally suffered disaster to death or total permanent disability.
Information, Tips, Tricks About Insurance
Buy life insurance - There are various reasons why you should plan your future finances from now on. The higher the need for life, such as the cost of children's education, the need for old age, to leave a legacy of property when you die someday. All the financial needs in the future can be overcome if you have been able to manage finances well from now on.
Confused to Manage Finance Buy Only Life Insurance

In managing family finances, you can use the financial planning formula. ÊAccording to Prita H. Ghozie, family finance planner of Zap Finance, you should set up expenditure items from the monthly salary as follows:

- Zakat, infak, alms = 5%
- Emergency fund and insurance premium = 10%
- Monthly routine fee = 50%
- Savings for needs within a year = 10%
- Investment for medium and long term needs = 15%
- Cost of entertainment and lifestyle = 10%

According to Prita, if you intend to take mortgage or vehicle installments, the budget should be used no more than 30% of your salary. For this, you are forced to reduce the budget for entertainment, lifestyle, or short-term savings.

1. Manage with Life Insurance
Allocating around 10% of the monthly salary to pay insurance premiums is a very appropriate step. Purchasing health insurance means you've shifted healthcare costs that could have suddenly swelled. If you have insurance, payment of healthcare costs can be lighter.

While life insurance can be used as a financial budget allocation in the future. Maybe not you who enjoy but your children and grandchild who will get many benefits.

Therefore there are various reasons why by buying life insurance you can manage the finances in the future.

2. Discipline Manage Money
When purchasing life insurance, you have an obligation to provide funds in accordance with the agreed premium agreement. Premiums must be paid monthly or annually. With this obligation, you inevitably have to set aside a part of the monthly income to pay the premium.Ê

This condition should make you more disciplined. Because if the premium is not paid, you may not be able to receive maximum benefits from life insurance.

3. Plan for the Future
Children and families are the ones who will most benefit from the life insurance you have. Because in principle, life insurance is a financial protection from the insured (the policyholder) for the recipient or the family left behind when the insured dies or a total disability that can no longer make a living for his family.

The regular premium you pay every month or every year, will eventually be used to continue your child's education or to meet the family's needs when you leave.

With these various reasons, managing the finances will be easier especially if you are not the type of person who likes to save or invest.
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Everyone who uses insurance must know the term premium. Premium is the amount of money paid each month or every year that is used as security deposit. Life insurance premiums paid by the insured to the insurer amount varies depending on many factors. In life insurance, premium prices are influenced by internal and external factors.
Factors Affecting the Magnitude of Life Insurance Premiums

Factors Affecting Life Insurance Premium: Internal
Factors affecting the large-small amount of the first premium is the internal factors or factors that come from the insurer (life insurance companies) not from the insured (life insurance customers). This is what determines the calculation of life insurance premiums that must be paid by the customer later. These factors are:

- Investment Result of the Company; If a life insurance company gets a high investment return on the funds it has managed, then the cost of premium payments to be paid by customers will be cheaper, and vice versa. No wonder most cheap premiums come from big insurance companies and have good management

- Calculated Expenses on Expenses, Taxes, Income, and Other: The cost of insurance premiums is determined by taking into account the expenses incurred by the insurer. If the possibility of spending a lot, then the premium will also be raised the price. Vice versa.

- Benefits of Protection: The insurance premium is of course determined by the product you choose. Different products definitely different benefits and guarantees offered. Because different benefits that, then the price of the premium was different. The wider the coverage you want, the greater the premium you have to pay.

Factors Affecting Life Insurance Premium: External
In addition to internal factors of the company, the price of a pure life insurance premium is also determined by factors sourced from the insured. The higher the risk of a prospective customer, the premiums charged will be greater. Several factors that affect the premium price that comes from the insurance customers are:

- Age: The younger the life of the insured, the easier it will be accepted by a life insurance company and the premium is cheaper. Because the risk of death and the disease is smaller than the elderly. The cheapest life insurance premium is usually reserved for people who are likely to die a little.

- Gender: Usually the client of the female sex will be charged a premium that is more expensive than male customers. That's because women are more susceptible to disease both physically and psychologically.

- Height and Weight: The higher and the weight of a person, the risk of death will be higher, because someone with weight above the average will be more susceptible to illness. Therefore, usually bigger customers will be charged a higher premium cost than those who are small.

- Occupation: Job type factor of course affects the determination of premium price. Insured who work outdoors the risk of death is higher than the customers who work indoors.

- Lifestyle and Hobbies: Lifestyle like smoking can certainly make the premium price becomes more expensive, or even not accepted by the insurer. In addition, having a dangerous hobby will also make the risk of death increases which is accompanied by an increase in premium prices as well.

- Health: Customers who have diseased offspring or have experience of disease, then the cost of premium will be more expensive.

After knowing several factors that affect the size of the premium above, then you can assess the price of life insurance premiums charged to you have been worth your risk. Insurance companies certainly consider many things before deciding the premium you have to pay.
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Life insurance function - At a glance, it's not hard to see what life insurance functions are for your financial security and beneficiaries like your family members. When you die suddenly before the end of the coverage period, you will not leave the family in financial trouble. The life insurance benefits of Allianz, Prudential, Axa and so on are more or less the same although there are differences in the services provided. However, there are other benefits given life insurance, either for personal, the company that provides insurance for its employees, as well as the insurance company itself.
Life Insurance Function for Individual, Company, and Insurance Person

Life Insurance Function for Policy Holder
Did you know that your life insurance is beneficial in taking home loans? If you plan to apply for a mortgage loan, one of the documents that should be provided is a statement that you already have life insurance. This is because mortgage loan repayments can last quite long, especially if you and your spouse have a limited income so you must set the budget tightly to be able to pay mortgage installments to complete.

Take for example you and your wife have a combined sum of approximately 15,000,000 Rupiah. You decide to take a mortgage loan with an advance of about 25% of the house price, 20 year installment, and the interest rate percentage at 15%. Every month, for 20 years, you are required to pay around 5,268,000 Rupiah. Imagine if something happens to you before the mortgage credit period ends, how will the family you left will continue to pay the mortgage loan?

KPR actually has life insurance to deal with this problem, and some insurance such as life insurance AXA Mandiri also provide services for the purposes of collateral mortgage payments. However, the insurance attached to the mortgage will only benefit if death occurs, not a total or permanent disability. So, make sure your life insurance is complete enough in terms of services, so that mortgage installment feels lighter and not burdensome.

Life Insurance Benefits for Insured Companies and Insurance Companies
Life insurance is also beneficial for companies that employ employees and insurance companies themselves. Companies that provide adequate life insurance will be ranked higher in the recruitment market, where companies like this will have no trouble attracting professionals and trained workers to work in the venue. Higher points will be awarded to companies that provide specific, comprehensive insurance options, such as the benefits of Prudential life insurance for pregnant women and the fetus (PRUMy Child) that mothers and families desperately need.

What about the insurance company itself? Institutions of life insurance companies are also very dependent on loyalty policyholders. When you buy a policy package, life insurance benefits for the company itself only show its financial benefits when policy ownership has stepped around the fifth year. No wonder the insurance companies compete to provide facilities, bonuses, and offers for the community to remain loyal to the policy for many years.

As a consumer, you can take advantage of this. Talk to an authorized agent to find out the possibility of a premium discount, as this information is sometimes noticed when you talk to an agent. If you intend to extend the policy and include someone, or extend the policy after more than 1-2 years, you may inquire about the possibility of premium deductions or discounts, or any other benefit as a loyal policyholder. By understanding the function of life insurance for all related parties, you can benefit and better understand your rights in terms of insurance.
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Life insurance for 65 years - When you are 65 years old or older and want to choose life insurance, the consideration will be more complicated than when you are younger. Usually, when you seek insurance when you are in your 65s, your goal is to bear the financial condition of others who will need the money when you are gone. Plus, when you're in middle age, choosing the right life insurance requires extra effort than when you were younger, due to various considerations such as health conditions and income factors.
Important Questions in Choosing Life Insurance For 65 Years

Then, how to choose insurance for your choice right? How to ensure that you and the beneficiary get the most out of the package of your choice?

Questions before Selecting Life Insurance
Life insurance for 65 years - When you're in your 65's, it's natural that you think a lot before choosing the best life insurance. Here are some questions you should ask yourself, as a basis for the selection of life insurance:

Who is financially dependent on you? How old are they?
If you buy life insurance to provide financial security to the beneficiary, consider various aspects such as the age and life plan of that party. There must take into account how long it takes until they receive the compensation money, whether they are small or already grown, whether they are still in school, what they will do when you are gone, and so on.

How much insurance should you buy?
If you are in your 50s, you might consider purchasing multiple insurances at once. However, there are also people whose condition allows to buy only one kind of life insurance. Make sure you take into account the need for insurance before buying.

How is your health condition?
Health and age conditions are part of risk factor assessment by life insurance companies. People who are over 65 years of age often have to pay extra for life insurance due to higher health risks, unless the insurer provides a special life insurance package for senior citizens.

What type of insurance should be chosen?
In general, you have a choice between term insurance and whole life insurance for life insurance; the first has a protection time limit, while the second provides cash benefits at the time of death. How to choose life insurance is to take into account the needs of the beneficiary; term insurance usually tend to be more suitable for short term needs, such as tuition fees.

All these important questions will give you guidance on choosing the most appropriate insurance, especially if you are new to purchasing it when you are 65 or older.

Tips On Selecting Life Insurance Based On Need
When choosing life insurance, you must adjust to the needs of the beneficiary. Tips to choose life insurance as needed is to take into account aspects such as your own health conditions, the age of the beneficiary, as well as the needs to be met by the recipient of compensation when you are gone. You should also take into account the question of the heirs of the policy where you can select multiple people at a time, instead of buying more than one policy that will make you pay more. - Life insurance for 65 years

You should do a thorough research on the various services offered by the insurance company; each company may offer benefits in one aspect, but not in another. It's a good idea to consult a financial consultant or insurance agent bersertifkat when selecting life insurance, before finally choosing the most appropriate one.
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How to Easily Lower Life Insurance Premium - Let's assume you have been informed how life insurance can be a safety net on future uncertainty.
3 Easy Ways to Lower Life Insurance Premiums

Assume you are now ready to buy life insurance, but still worried about having to pay a premium too high.

No need to worry. There are several ways you can lower your life insurance premiums legally.

Here are three simple steps you can take:

1. Stop Smoking
You have often heard about this. But that's the reality, quitting smoking will be good for your physical health and your wallet.

Long-term health complications from tobacco use make insurance companies consider a smoker at high risk.

Smokers are at increased risk due to the higher risk of death experienced by smokers due to the various health problems it triggers.

In addition to saving premiums, there is a large amount of money that can be set aside for other purposes that are more useful when someone decides to quit smoking.
That's why, make a wise decision to quit smoking right now.

2. Keeping Ideal Stay Weight
Having excess weight, especially that accumulates around the abdomen, puts a person at higher risk of heart disease.

For this reason, insurance companies charge higher life insurance premiums for people who are overweight.

If you have trouble finding the motivation to lose extra weight, saving life insurance premiums may be an additional motivation.

3. Consider Paying Premium Annually
While it may be burdensome for some people, paying an annual premium (instead of monthly) can save your life insurance premium.

Some insurance companies will give a discount if the premium is paid at once for a year.

To be sure, ask the insurance agent whether this can be done and the amount of savings that can be done.
Information, Tips, Tricks About Insurance
How to protect your investment with life insurance - You who have investments in stocks of course have experienced tension when the index decreased. Losses on the portfolio seem to be looming in front of the eye.
4 Ways to Protect Stock Investments with Life Insurance

The ups and downs of stock prices on the stock are actually common. The problem becomes more severe when the stock is experiencing a recession or "bearish" in the long run.

In times of recession, many people lose large portions of their portfolios and, unfortunately, some do not live long enough to cover all the losses that have occurred.

However, fortunately not all is doom and gloom, there is light at the end of the tunnel.

Life insurance can protect your portfolio in good times or bad, so you can stay relaxed when viewing news on the stock market.

Here's how life insurance protects your stock portfolio:

1) In an emergency portfolio, use life insurance
Some of us may choose stock as an investment instrument. Depending on how much money is invested and how the portfolio diversification technique, you may have a large amount of money connected to the capital market.

So what happens if the market is collapsing? The cash value of a life insurance policy can provide additional security in case of a stock market erodes your portfolio.

The cash value and protection level of the policy can generally be adjusted as needed.

2) Financing sudden expenses
Let's assume your portfolio is still in safe condition. But keep in mind, assets in the form of stocks are usually not too liquid because the selling price may not be right.

What happens if you are suddenly in great demand?

Liquidating assets may take time, time that you may not have in an emergency.

A permanent life insurance policy allows you to withdraw some of the funds available or take out a loan against a policy fund, so you do not have to sell stocks prematurely.

3) Protect assets for heirs
The stock portfolio is not just yours. You may have planned to someday pass it on.

That's because, when stock values ​​suddenly shrink due to a recession, this fact can be very painful.

If you want to pass assets to heirs, you can do so with an insurance policy. No matter how the market fluctuates, your inheritance will persist.

4) Reserve for investment penchant
Some people not only have a portfolio in the stock market, they may also invest elsewhere like in the forex market.

The market can be unforgiving, especially for short-term investors. That's because, people with this type may want to hedge using life insurance.

You may not have control over market volatility; but you can give your portfolio additional protection using life insurance.