Currently there are several life insurance products are used by insurance companies are:
Term Life Insurance
Term life insurance serves to give protection to the insured within a limited period only. The advantages of this product is the customer the freedom to determine premiums according to their abilities.
Another plus is the sum that could be obtained by the policyholder can reach billions of dollars. This means that when the insured dies during the period of the contract is still active, then the family will get a sum insured that very much.
Meanwhile, the lack of term life insurance is insured and the policy may lose their insurance money if he does not have health problems and died until the contract runs out. This makes a lot of insurers began to leave this insurance product.
Whole Life Insurance
Whole life insurance is an insurance product that provides protection benefits of up to 99 years. The best part is this insurance allows the policyholder to obtain cash value and the policy that has been paid. Another added value if the insured is unable to pay the premium installments regularly, they can use the cash value of the premium has been paid to pay further premiums.
The drawback is the insurance premium is more expensive than term life insurance. This caused the life expectancy for men is about 65 years, while a woman is about 70 years old so the insurance claim before the protection period ends there must be.
In addition, the cash value and the total premium is given not too much because the insurance rate is only 4% per year. The worst part, the interest will be taxed so that customers could get a low cash value or even not at all.
This latter type of insurance is that the endowment insurance and term life insurance savings. This means that the policyholder can get the cash value of the insurance premium has been paid and can draw an insurance policy within a certain time before the contract expires. For example, the insured needs education funds to send their children, then he can claim his life insurance policy with an insurance record is only given in a few years according to the agreement.
Disadvantages of this insurance product is fairly expensive premiums because this product has two functions. This makes this type of insurance is only interested by the upper middle class who can afford to spend millions of dollars to pay the premium per month.
Unitlink increasingly popular because it has a kind of life insurance protection and investment value are promising. This means that customers who buy a unitlink insurance does not just get a guarantee of protection, but also the value of an investment with a high interest each year as well as additional benefits.
These investments are managed entirely by the insurance, the policyholder just waiting for the distribution of profits alone. However, this unitlink insurance also has shortcomings in which the policyholder will only get lower insurance policy if their investments fail or produce only a slight advantage.