types of car insurance

At this time has developed various types of insurance in society, in risk management, insurance allows the sharing and transfer risk, this is the best way to compensate. Most people do not understand the fundamental differences in the types of insurance, but to determine the insurance program that best matches your needs, we must recognize the types of insurance.


Insurance is divided into two main types
1. Traditional Insurance
2. Non-Traditional Insurance (modern)


In the Traditional insurance, divided several types of insurance, this insurance typically has long been used by many consumers.

Traditional insurance consists of:

1. TERM
2. Wholelife
3. Endowment

Explanation TERM
- You never know about or Motor Car Insurance? Or maybe health insurance? Well kind of term insurance is usually purchased by many people, because the premium payment is cheap and getting great benefits. In other words, pay less, failure by many, but if it is not used in insurance claims and does not occur, then the money we deposited will be forfeited. From that fact, we can see, there is no savings element in this type of insurance, so call us to buy our security guarantee within a year or a certain period. We pay the same as travel insurance, the time will be billed an amount of money on a plane, after getting off the plane safely, the contract is completed. Due to the premium payment period is not specified, then every year, premiums will increase with increasing age the insured.



Explanation Wholelife
- Wholelife, meaning a lifetime. This type of insurance protects the insured until the end of the age, is usually covered up to age 99 years. And incredibly! premium payment period is determined from the beginning, there can be no extension of the premium payment period. If elected for a 5 year, yes five years of pay, then a lifetime will not be billed again, whenever we die, we can still claim the sum assured that we have planned. Because the system is saved, then started the second year of the policy cash value that is formed, in a certain year the savings can be captured at up to 80%. Keren ga? Besides the permanent protection of the road continues, there are also savings, cash value but not much compared to the value PROTECTION.


Explanation Endowment
- Endowment, this is life insurance with a value greater savings. In certain years the savings could be withdrawn in accordance with the program. Usually this type of insurance known for its insurance education insurance or pension funds. Insurance education is determined when the money could be taken for school fees dear. Endowment system, the savings are a bonus life insurance, if something happens during saving, then we get the sum assured as death benefit, but in the event the obligation to pay claims, insurance companies still pay the claim until the completion of his contract. Usually the premium being offered is much larger than the type and Wholelife TERM.

Example: Budi took 32 years for child education insurance Desi, 2 years. At the time of paying the premiums, at the age of 36 years Budi Dead. At that time the wife of Mr. Budi get the death benefit specified amount UP, free and pay the premiums. At the age of 7 years Desi, Desi still get a scheduled educational claims, and at age 13, age 16, age 19 years, and so on.



Okay, we'll talk a little about Non-Traditional Insurance

Non-Traditional Insurance or so-called modern insurance, is insurance to the type of UNIT-LINK. Where the Unit Link Insurance is very popular at the moment, why? because Unit-Link is a type of insurance that combines the Life Insurance and Investments. Life insurance is mated with the investment, is the type TERM. Remember! TERM if it is a short-term insurance, and insurance costs could rise with age.

UNIT LINK = TERM + Investment

Most people take the Unit Link because he wanted to save the results are many orders of magnitude, than have to save money in the bank, with interest does not amount to much. By investing or mutual fund, the money we invest will grow prolifically. But the thing to remember, the bigger the profit, the greater the risk.

Investment may increase and may decline, according to the economic development of the nation at that time. In times of crisis, then certainly the value of investments that we have fallen dramatically, and consequently the value of our savings will be depleted. If so, do not protest dong .. did not gain much pingin, means it must bear the loss as well .. :)

Certainly, in the type of unit-linked insurance, have no cash value is guaranteed, even the company that issued the insurance policy, can not promise the cash value earned in the year X. Another case of traditional insurance, in her policy is clearly set forth the guaranteed cash value and is obtained in X.

As there is no guaranteed cash value, probably in the year to 11 or more, the insured must pay the premiums back, though promised to pay only 10 years, in fact not listed in the policy premium payment period, so the premiums can be charged back at any time.

Unit Link, bear the cost of insurance is the type TERM, then the annual cost will rise with age, and the cash value that is formed will cut insurance costs and other administrative costs.


Before you choose the right insurance for you, you should consult truly understand the concept of insurance. Since everyone has different characteristics in managing finances.