These days, most of the people consider the option of buying a permanent life insurance policy in Indonesia so that they can create a well-established buffer for the security of their family members after their death. Everybody knows that life is pretty uncertain and in today’s time. If you haven’t planned for the future of your family, it is going to be hard for them in case of uncertain events in life. To avoid such challenges and difficulties, most people prefer to opt for life insurance with the help of which, they can create financial provisions for family and loved ones following their death as a part of a sound financial plan.
Importance of permanent life insurance
If we look broadly into the types of life insurance, we would get two basic types i.e. term insurance and whole life or permanent insurance. The policies of the former offer death benefits. This means that if you die, you will get money back, but if you live past the pre-determined length of the policy, you will not get any benefits. The later one i.e. the permanent life insurance policies are open-ended and also accumulate a cash value that the policyholder can earn dividends from and borrow against or cash-in upon surrendering the policy. Out of the two types of life insurance policies, most people prefer to opt for permanent or whole life insurance. The reasons behind the increasing popularity of these policies are its many benefits versus traditional policies.
Types of permanent life insurance
Permanent life insurance can be categorized into mainly two types which are:
1. Whole life insurance
2. Universal life insurance
The whole life insurance is meant for satisfying long term goals by offering consumers consistent premiums and guaranteed cash value accumulation whereas, universal life insurance policies focus on giving consumers flexibility in the premium payments, death benefits and a savings element in their policy.
Now, with the varying benefits of both types of permanent insurance policies, it can become a bit difficult for many people to decide which policy is the best one for them as well as for their family. To make the task of picking up the most suitable policy easier, it is strongly recommended that you analyze your family’s needs, both pre and post-death. This will surely help you to make better decisions for your family.