Get to know Life Insurance

Life Insurance Simple Meaning

Along with the development of the times, people's need for cover is becoming more and more complex. this is often why then various kinds of insurance are created and offered to the community.

We as a society must be smart in choosing which sort of insurance to overcome possible losses. Of course, the sort of insurance we choose must be in accordance with our needs and we have considered it as well as possible if we have to use insurance services.

Therefore i will be able to discuss about life insurance, insurance , adulthood insurance and education insurance. The goal is that writers and readers can understand and be smart voters in removing insurance service offers.

Life insurance is a type of insurance that provides a diversion of financial losses for disasters that can occur to humans, either as an immediate result, like death or disability, or indirect consequences, like medical expenses or loss of income.

Thus it are often said that life insurance is an insurance that aims to cover people against unexpected financial losses caused by people dying too quickly or living too long.

There are 2 things that are the aim of life insurance:

1. Guarantee the lifetime of the child or family left behind if the policyholder dies.

2. to satisfy his life needs if he is still alive after the contract period ends.

Life insurance can be classified into several categories, namely

Death insurance

Namely the supply of a certain amount of money at the time of the customer's death and includes 3 types, namely

Whole life insurance

The insurance firm will pay a sum insured when the insured dies whenever this is a permanent policy that is not limited to the expiration date of the policy as in the term assurance. Because claims will certainly occur, the premium are going to be more expensive than the term assurance premium where claims are only possible. Whole life policy may be a substantive policy and is often used as protection in loans.

• life insurance meaning and types
• explain the meaning and types of life insurance
• define life insurance and its types
• life insurance definition and types
• life insurance types definitions
• life insurance meaning in simple words
• term life insurance meaning in simple words
• whole life insurance meaning in simple words
• life insurance simple meaning
• meaning of life insurance in simple words
• simple meaning of life insurance

Term assurance (term insurance)

Term assurance is that the basic form of life insurance, namely, a policy that gives guarantees for the risk of death within a certain period of time

For example ;

- Insured's age of 30 years

- 1 year contract period

- Premium rate, for instance 5 per/mil per year of the sum insured

- Sum insured 100 million

- Annual premiums to be paid. 5/1000 x 100 million = Rp. 500.000

- The one designated because the beneficiary of the insured's money ; wife (50%) and first child (50%)

Explanation:

If the insured dies during the contract period, the insurance firm as the insurer will pay the sum insured of Rp. 100 million to the designated person.

However, if the customer remains alive past the insurance period, then the installments he has paid are going to be lost and the insurance company takes the money without any reward.