When it comes to making sure that in case you need to pay for an expensive hospital fee because you are required to be hospitalized, that you will not be in a trouble with the payment because you may not have the money ready, having health insurance is something that you can do.
You may not always be ready when you are taken to the hospital with your wallet left at home or your family is too far away to be able to help you directly. That is why this is when having insurance is needed and feels important.
Many people out there may underestimate having health insurance or any other type of insurance for the fact that they feel that they will not use it and still need to pay every month or at some time agreed in the contract.
Having insurance is actually like having an investment for a long term in the future. There are many people who would spend their money on insurance because some insurance companies would refund the all the money in the end of the period of the insurance as stated in the contract agreed, and the period of time can be 5 years, 10 years, or even longer.
Common Mistakes In Buying Insurance and Unit Linked
There are some common mistakes policyholders for unit-linked insurance products as well, so it does not deliver maximum results. Some of these errors seem trivial, but can be dangerous if left unchecked.
One of the most common mistake is to place the child as an heir in various types of insurance products.
Though the boy was not necessarily competent legal so can not be heirs. At least the child is aged 21 years or married. If the policy holder dies before the child can be heir, then it could be troublesome.
Another common mistake occurs when buying insurance products are insurance insuring children in education. Parents put the insurance on his son, so if the child dies then the insurance for a new educational liquid.
Then the money to whom? His son died first and his money out. Should the parent education insurance attached, so that when his father died, her son could continue school.
Mistakes like this happen more than 70% of insurance education. While the third mistake is to choose a small sum insured because the premium per month is expensive.
It is a lot happening on the unit link. Because this type of insurance has a very high monthly premium but on average a small result.
The average person it takes money from the insurance coverage of approximately $ 1.5 to 4 million. But if the unit link is not large, at only $ 50-200 thousand, but there are some that up to $ 400 thousand.
This type of unit-linked insurance can not provide protection and maximum investment results than the usual type of insurance.
Unit-linked insurance product itself is not bad, just that the condition does not allow to maximize the insurance to the general public.
Then, what if we already have a unit-linked insurance? If the period is not yet a year, better stop it.
Indeed in the first year premium is lost, but if passed it many more are missing. But when it’s over a year, more and more potential losses. Better to examine the health condition itself if still need to use link units or better just canceled.
Insured with a Healthy and Profitable
Choose a company with a healthy and profitable then have a good financial expert.
Do not be tempted by a cheaper premium rates. Maybe premiums only slightly different, but make sure the amount of guarantees provided, and the conditions imposed.
Do not invest in an insurance company with co-insurance or re-insurance. Co-insurance is a company that sells insurance products and programs. The re-insurance is the co-insurance company insuring returned to an insurance company. The usefulness of re-insurance companies is to reduce the risk borne by the company co-insurance. Co-insurance and reinsurance companies are typically used when an insurance claim hundreds of millions of dollars.
Make sure the policy guarantees a correct and complete in accordance with the needs, because if the risk occurs is not guaranteed in the policy, although we have chosen a reputable insurance company, they still will not pay claims.
Customer may not know and understand the warranty policy, so check with the agent, broker, or insurance companies are concerned about what is guaranteed and what is not guaranteed.
The financial statements of insurance companies need to be seen to know whether the insurance company’s financial condition is healthy or not.
Customer must look at the credibility of insurance companies in operation, are often problematic in paying claims or are there cases from previous customers.
Make sure the insurance companies have qualified human resources and reliable in running the company.
Choosing an Optimal Product Life Insurance
In doing financial planning, one is faced with the necessity for protecting assets and we all agreed that a valuable asset and can not be precious with money is a life or soul of a human being.
Furthermore, can we count the money correctly with the right life insurance coverage? So if there is risk of death then we can leave a legacy of a decent sum assured to those who we leave behind.
Before we discuss the method of calculating life insurance money, we should note that the basis for calculating the sum insured is based on the calculation of ‘economic value’ of the question. Economic value in question is the amount of income or average income per month at present. So if one income increases, the already large sum assured should be increased again.
The method of calculating the sum insured was different, but generally we split into 3 (three) groups of methods of calculation, namely:
1. Human Life Value Method: in this method the absolute sum is calculated based on monthly income multiplied by the time the funds available to sustain life, regardless of interest or growth factor if the sum assured of funds deposited in banking products.
2. Income Based Value Method: This method calculates the sum assured by calculating the amount of interest or return if the money received is deposited in banking products.
3. Value Based Financial Needs Method: large sum assured to have a range of at least equal to the amount of money a particular need at this time (present value) multiplied by 150%. While the maximum sum assured is equal to money in the future (future value) multiplied by 80%.
This method is absolutely combined with the investments made (either monthly or yearly) to achieve financial needs in the future (future value) of financial needs. This method can also be used for those who already have a very large monthly income so that the two other methods mentioned above can not be used anymore because it will give the amount of insurance money that is too large (unlikely sum approved by the insurance company).