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Insurance is a term used to refer to an action, system, or business where financial protection (or financial compensation) for the soul, property, health and so forth get a replacement from unpredictable events that can occur such as death, loss , damage or illness, which involves paying premiums regularly within a certain period of time instead of a policy that guarantees such protection.

The term “insured” usually refers to everything that gets protection.

Basic Insurance Principles

In the insurance world there are 6 basic principles that must be met, namely:

• Insurable interest, namely the right to insure, arising from a financial relationship, between the insured and the insured and legally recognized.

• Utmost good faith, which is an action to disclose accurately and completely, all material (material fact) facts about something that will be insured whether requested or not. The meaning is: the insurer must honestly explain clearly everything about the extent of the terms / conditions of insurance and the insured must also provide clear and correct information on the object or interest insured.

• Proximate cause, which is an active, efficient cause that causes a chain of events that results in an effect without the intervention of one who starts and actively from new and independent sources.

• Indemnity, which is a mechanism by which the insurer provides financial compensation in an effort to place the insured in the financial position he had just before the loss occurred (KUHD article 252, 253 and affirmed in article 278).

• Subrogation, namely the transfer of claim rights from the insured to the insurer after the claim is paid.

• Contribution, which is the right of the guarantor to invite other guarantor who both bear, but do not have the same obligation to the insured to participate in providing indemnity.

Type of Insurance

1. Life Insurance

This type of insurance is known to provide financial benefits to the insured for his death. The payment system for this type of life insurance varies. There are insurance companies that provide payment after death and others can allow the insured to claim funds before his death.

Life insurance can be purchased for self-interest and on behalf of the insured alone or purchased for the benefit of a third person. Even life insurance is also known to be bought in other people’s lives. As an illustration, suppose a husband can buy life insurance that will provide benefits to him after the wife’s death. Parents can also insure themselves against the child’s death.

2. Health Insurance

This type of insurance is also quite well known by the people of Indonesia. Health insurance is an insurance product that handles the health problems of the insured because of an illness and covers the cost of the treatment process. Generally, the cause of the insured’s illness which can be borne by the insurance company is injury, disability, illness, until death due to accident.

Health insurance is also known to be bought for the benefit of the insured or the interests of a third person. Private health insurance companies such as Prudential, Allianz, AIA, Cigna, and Manulife are among the big names that provide a variety of insurance products to suit the needs of the Indonesian people and are widespread throughout the world.

3. Vehicle Insurance

The most popular vehicle insurance in Indonesia is a type of car insurance that focuses on injury coverage to other people or against damage to other people’s vehicles caused by the insured. This insurance can also pay for the loss or damage to the insured motor vehicle.

Vehicle insurance is one of the general insurance products. This type of insurance had become a boom when the riots broke out in May 1998 because the incident made people’s interest in protection ownership for private vehicles increase dramatically.

The financial site has partnered with well-known insurance companies in Indonesia so you as a customer can compare the best car insurance products with low rates.

4. Education insurance

Dizziness with children’s education costs? This type of insurance will help you overcome. Education insurance is the best alternative and a solution to ensure a better life, especially in children’s education assets. The cost of the premium that must be paid by the insured to the insurance company varies according to the level of education to be obtained later. Understanding the importance of using education insurance for children is now a matter of concern for parents. The high cost of education and other conditions that exacerbate the economy such as the weakening of our currency against the US dollar affect the cost of education for children later. Realizing that this clearly will burden parents, it is not uncommon for parents now to choose to have education insurance. So, education insurance can be classified as the types of priority insurance too, right? You will certainly be helped in taking care of the child’s future.

5. Travel insurance

Maybe for those of you who often travel or travel are familiar with this type of insurance. The various types of insurance also create a variety of protection for travelers. Overall, the function of travel insurance is not much different from the ordinary insurance function as a form of protection for customers with a short period of time that is for the premium buyer to travel until returning home. Benefits and protection that will be gained from having travel insurance include obtaining protection and coverage for accidents that affect premium buyers, personal accident benefits, dependents for emergency medical expenses, repatriation of bodies, medical evacuation, to protection of luggage that has a risk of being lost. or damaged.

6. Business insurance

For those of you who have a business field, this type of insurance is important to consider. In addition to the types of insurance that involve individual protection, insurance that protects businesses is also needed. Business insurance is a protection service against damage, loss and loss in a large amount that may occur in one’s business. This insurance provides compensation for damage caused by fire, explosion, earthquake, lightning, flood, hurricane, rain, collision, until riots. Insurance companies usually offer a variety of benefits from business insurance such as protection of employees as business assets, investment and business protection, comprehensive life insurance for all employees, to health insurance protection packages for employees.

Advantages of Insurance Companies

Insurance companies also benefit from investment. This is obtained from the investment premium received until they have to pay the claim. This money is called “float”
Insurers can get profit or loss from float price changes and also interest rates or dividends in float. In the United States, property losses and deaths recorded by insurance companies were US $ 142.3 billion in the five years ended 2003. But total profits in the same period were US $ 68.4 billion, as a result of the float.

Insurance Refusal

Some people consider insurance to be a form of betting that applies during the policy period. The insurance company bet that the buyer’s property will not be lost when the buyer pays the money. The difference in fees paid to insurance companies against the amount they can receive if an accident occurs is almost the same as if someone bet on horse racing (for example, 10 to 1). For this reason, some religious groups including the Amish avoid insurance and depend on the support received by their community when disaster occurs. In communities where close and supportive relationships where people can help each other to rebuild lost property, this plan can work. Most people cannot effectively support the system as above and this system will not work for big risks.

Robert Kiyosaki Loves Whole Life Insurance ================================== Make sure not to miss a video from Chris! Click here to subscribe: …

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40 Replies to “Robert Kiyosaki LOVES Whole Life Insurance: The Secret Tool of the Wealthy | My Insurances Info”

  1. How Much Money Are You Losing if you have a "WHOLE LIFE OR UNIVERSAL LIFE POLICY”

    STEP-1 Calculate how much do you pay TOTAL PER YEAR: (Monthly Payment x 12)

    STEP-2 Calculate how much you have Paid until now: (Total per Year x Number of Years)

    STEP-3 Call your Life Insurance Co. Customer Service Line listed on your policy (not the Agent/Agency) and ASK: “How much Money do I have available to withdraw RIGHT NOW to use for my Retirement or in case I have an emergency?”

    STEP-4 Compare what you have PAID with what you have AVAILABLE.
    You may find out that you have much LESS than you have paid and how much have you lost so far.


    -Where Did My Money Go ?

    -Out of each payment, how much goes to the Insurance cost and how much goes to the Savings part ?

    -Does the Cost of Insurance increase every year ?

    -If I access my money do I have to pay any interest?

    -How much is the Interest ?

    -Why do I have to Borrow and Pay Interest on my own money ?

    -If I access my money, does my Death Benefit go down ?

    -If I pass away, would my family receive both: the Savings and the Death benefit ?

    -My Agent told me that after 10 years I dont have to pay anymore. How does that actually work, where would the money come from to pay for the policy ?


  2. There has never been anything easier than convincing fools that the cheapest is the best. This guy could look a lot more intelligent and trustworthy, but he could not be more correct. Maybe 90% of these cash value products are not good, but if you dismiss the other 10% you are missing a potentially great vehicle for yourself and your progeny.

  3. The thing i dont get about loosing to inflation is what about the money your putting into the account each month? Doesn't that help you beat inflation you usually put in way more than the interest you get.

  4. This guy has gotta be a life insurance saleman, because he is only telling half truth, at best.
    You "can have access to it"….what he means to say is you " have to BORROW, your own money."
    Then pay it back, to them, with interest.
    And if you die, they keep the cash!

  5. What’s the benefit in getting railed in commissions and fees and insurance you might not need though? Like why would you want to invest your money in such a way you lose half up front and can only access 70% of what’s left?

  6. For those that believe Dave Ramsey is against whole life, that's not entirely true. He and every other term insurance proponent agree that Indexed Universal Life can be a suitable tool, but only for the super, super wealthy–those who have already maxed out every other tax-advantage savings plan and have a lot of cash just sitting around. For the majority of Americans, whole life is not a suitable product.

  7. I was sold a whole life insurance policy for 100k death benefit. It runs out at age 70 but I get all the premium back. yay 23k. If I die the cash value stays with the insurance co.Then I learned I could have bought regular term policy at fraction of my rate 63.00 then invest the difference. If I had done that I would not have an either or situation…and I would still have 100k until 70 in case of death and 68000. in a seperate investment account over the same amount of time. Buy Term. Invest the Difference.

  8. EVERY single whole life policy that I have come across have 3 things in common. THESE ARE SO IMPORTANT!!!!!

    1. No money is accumulated for the first 1-5 in the cash value savings account. (I've seen 1 that was 20 years) Would you put money in a bank and come back 4 years down the road with no money in it and be content?

    2. If you decide you NEED to take money from your cash value account you have to pay it back to the company with a 5-8 percent interest rate. (On YOUR own money!) Does it make sense to borrow your own money!?

    3. If you DIE you LOSE your cash value! The company gets to pocket all of that money! They will ONLY pay the death benefit! If you were paying for 2 things your entire life and you only got 1 at the end what would you call that?


  9. FYI
    1) You don't benefit from death benefit because you have to die to get it.
    2) when you die, your loved ones DO NOT RECEIVE the CASH VALUE! The company keeps it! (who gets rich then?)
    3) You mentioned money grows "4% tax deferred" — not all give that much and there can be stipulations…plus for first year or two, there is NO cash value at all.
    4) when I called the the whole life company, they told me that if I access any money, I get charged 6% "loan" rate until it's paid back. Others were more. Universal policies can be as much as 8% loan rate!
    5) this means I'd have to make 2 payments for the same coverage.
    Oh wait…if I don't repay the "loan" then the amount "borrowed + interest" gets deducted from the death benefit for my family!!
    6) Whole life is the MOST COSTLY on the market, Universal policies IMPLODE and FTC in 1973 called them for all intents and purposes, a scam.
    7) If you can qualify for affordable LEVEL term (death benefit and the premium remains the same) and then INVEST the cost difference + rescue any cash in your WL policy, over the course of your term, you should have close to the death benefit amount in your investments, thus eliminating the need for insurance. (Renewable rates vary greatly between term companies, check those rates out before your commit, plus verify if you need to have health check or not at End of your term.)
    8) Upon death, your loved ones get all the money, not just insurance.

  10. There are a LOT of ignorant comments on this thread. Too many people are quick to say "whole life is a scam" without trying to understand how it works. If it was such a bad deal why would banks own over $160 BILLION in cash value life insurance? If someone has a serious question go ahead and post it otherwise you are just a bunch of sheep parroting some "guru"

  11. Lmao what a joker… an annuity is a better way to put 100k into without risk, and that’s not even a priority option.
    Never combine insurance with investments people; they are two separate things that should never mix like water and oil.

  12. So I have 100k, and in two years, I have 94k? Making 4%, and when I borrow my own money, you charge me 6 to 8%. The only reason wealthy use this product is to protect themselves from taxes and they have exhausted all other investments. Ugh. Buy a term policy with guaranteed insurability and invst your dough somewhere else.

  13. Guys …. This leveraging concept is not new to money what so ever. It is used in real estate everyday. It is used to acquire companies every single day. It is preached by financial experts every single day. If you are buying a company, do you use the banks money or your own? Even if you have the money in cash you use the bank. Why, because the interest owed on money borrowed is far less than earnings on a larger balance.

    In other words. If i have a $500,000 asset (cash, house, retirement account) that earns market rates and want to pull out $40,000 annually, I am going to borrow against that account so the $500,000 keeps earning. Example over 10 years. $400,000 borrowed at 6% (max interest rates insurance companies can charge, currently) $400,000 borrowed with $24,000 in interest owed. That $500,000 never saw a withdrawal and at 7% earnings it doubled. My gross account is now a $1,000,000 with a net account of $576,000. The earnings on my gross account paid off all the debt and interest owed on my borrowed account.

    Now if i took distributions on that principal, using the same $40,000 and still earning 7% i would have completely ran out of money in the 14th year. Sooner if the market took a dip. Again, not rocket science. This is used for leveraging stock portfolios, real estate, and now insurance. Successful people use concepts like this everyday, this is finance 101. Stop dismissing people and trolling if you don't know what your talking about.

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