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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.

There are many different kinds of life insurance. Term Life, Whole Life, and Universal Life are just three of the most basic kinds. Here, life insurance expert and …

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27 Replies to “Types Of Life Insurance Explained | My Insurances Info”

  1. Buy Term, invest the difference into a mutual fund, and you will have a lot more than 217k waiting for you. He's making less than 5% growth when the market average is almost 12%. When you have enough money to cover your expenses, lets say a million there is no need to have any life insurance ever again.

  2. Here in New Zealand I've taken out a Life Insurance Policy with AA Insurance. It's called: "AA Life Cover". My Premiums (as I'm a 30 year old Male, Non-Smoker) are $15.29 NZD per fortnight for: $400,000 Cover. If I die early, then my Beneficiary gets: $10,000 straight away for Funeral Cover. If I get diagnosed with a Terminal Illness, then the whole amount gets paid out in a lump sum (tax free). Suicide is covered also after 13 months. Every year on the date I took out my policy my Policy Cover Amount is increased by a minimum of 2%. So that's about: $8,000 per year. That's pretty good. I'm happy with it. So if i kark it before my Mum & Step-Dad – then they will be looked after once I'm gone. 👍👍

  3. Life insurance ? it only pays when a person dies ?
    The appropriate term to use is death insurance .
    What a world when they think you're still on the hook to pay bills even after you're fucking dead ! That's death insurance , not life insurance . Get it straight you scam artists

  4. I would never buy garbage whole life or universal life insurance. Buy cheap term insurance and invest the difference. When you burrow money from your cash value ..savings/investments it becomes a loan. Then who’s money is it the worst part is that your beneficiary only gets the face amount and the company keeps your investments if you die..

  5. This is a pretty fair and informative video. One caveat: a lot of universal life policies have collapsed, because the internal costs of the policies keep rising as people get older.

    IMO the best types of term insurance is convertible term (fairly cheap term insurance that can be converted to whole life if you wish). It’s good to keep your options open and it’s a way to have guaranteed permanent insurability without the high cost of whole life in the early years.

    (I don’t sell life insurance, but I write about it and I own convertible term).

  6. Are you looking for a good and better insurance life policy? Are you interested in securing the future life of your children or family or love ones while you are gone or after your death? If yes,you don't need to look further, at Royal Exchange Prudential life PLC,we provide you with the best life insurance policy which your children or family or love ones will benefit after you are gone. You can contact our agent [email protected]

  7. I have no idea if this guy is just an actor or just a liar. 2 main points that people must know when he said that he’s had a Whole Life policy for 25 years and pays $4,635 annually and has a cash surrender value of $217,000.
    1) $4,635 x 25 years = $115,875. Most Whole life policies can’t have a cash surrender value way higher than the amount of premium paid for it because it will become a MEC and that automatically converts it into an investment and brings penalties for the company and taxes for the client.
    2) If that were true, and he dies, his beneficiaries will only get the life insurance benefit and NOT the cash value. So that would be $217,000 down the toilet. So it’s not an investment… it’s just a savings that belongs to the life insurance company until you claim it while you’re alive.and when you do you MUST surrender your policy.
    YOU ONLY GET EITHER… OR with Whole Life.

  8. Two Storys about this one for Sure when i thought about Life Insurance. You get alot of Hungry People out there Especially if they know You Have Life Insurance OR Have a Life Insurance when you Die in the Line of Duty and you give the Money to your Mates so they Can Party in Vegas?

  9. That's pretty sad. 25 years at that premium and cash surrender value comes out to a 4.6% rate of return. Why would you be impressed about that when you could make so much more in other investments. Even if the investment gurus out there are wrong on their high returns suggested you can still do better than this. My 401k took a hit in 2008-9 but came back just fine. When I learned more and changed my mix I made far more. Last year was freaky and I made close to 20%.

  10. 4:30 minutes into life insurance and chill and he gives you this laughable insight. Over $4000 a year paid over a 25 year period (give or take any minor adjustments over time) and his "investment" only yields $217,000?? He also says that's much better than his other investments? This guy has some terrible investments if he couldn't become a millionaire in a few decades with that much consistent cash outflow. The cash value in WL plans have a horrific rate of return, and you're better off taking all the money you'd save on a term plan, and invest it somewhere real. Investments and insurance work better when they are separate.

  11. Thanks for this completely biased video on why we should get permanent insurance. Sorry bud, but $217k in a whole life policy just sounds foolish to me. You left out the part that the insurance company keeps all that money when you die. Not your estate or beneficiaries.

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