Want to know the importance of permanent life insurance? Read on!

Universal life

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
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

life-insuranceThe 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.

Permanent Life Insurance Indonesia for Complete Peace of Mind

If you are unable to decide, whether you need to buy a life insurance policy or not, it is important to ask yourself this one question – “Would my death leave my family or anyone close to me in a financial bind?” If the answer is yes, it may be time to get serious about finding a suitable life insurance policy. If selected properly, life insurance can offer peace of mind, ensuring that your debts or family financial requirements will be taken care of after you are no more. Permanent life insurance is a great choice if you want lifetime insurance protection. However, before you buy an insurance policy, it is important to know more about the benefits of permanent life insurance.

Permanent Life Insurance
Life InsuranceAn insurance policy that provides lifetime protection (no expiry date), Permanent life insurance is a financially stable way to meet your family’s financial requirements after your death. However, premiums in this policy should be paid on time. Most permanent policies provide an investment component along with the insurance coverage. This component, in return, makes the premium amount much higher than those of term insurance. The investment may offer a fixed interest rate or can be in the form of bonds, mutual funds and market securities. The savings option present in the permanent life insurance policy permits the policy owner to build a cash value amount within the policy that can be easily distributed or borrowed sometime in the future.

The Characteristics
• Expensive, but beneficial
• Permanent insurance protection
• Build cash value
• Loans are allowed against the policy
• Favorable tax treatment of policy earnings
• Level premiums

There are three basic types of permanent insurance :
• Whole life
• Variable life
• Universal life

Permanent life insurance

Out of all the three, the two most common are whole life and universal life insurance. Whole life provides lifetime protection, for which the policy owner is required to pay a predetermined premium. It is the most expensive life insurance available. On the other hand, universal insurance separates the investment and the death benefit portions. In this policy, you can change your premium amount and death benefits as per your requirements.


While seeking insurance, do not rush! Select a policy that meets all your requirements and budget. When you buy life insurance, you are betting that you will live, but it also secures your peace of mind in case you do not. Look for permanent life insurance, Indonesia to protect your family in the sudden event of your death.

Benefits of Buying Universal Life Insurance in Indonesia

Universal life insurance is a type of permanent life insurance and is similar in many ways to whole life insurance. The advantage of such a policy is in its flexibility and the potential for cash value growth. This insurance offers the policy owners a chance to change the policy (within limitations) to suit their requirements, budget and other changing needs. If you are financially stable, you can also increase the investment amount to take advantage of higher growth rates; however, if you are facing financial difficulties, you can use the accumulated cash value to pay the premium amount.

Universal Life insurance

Universal insurance offers you optimum control over your financial requirements by providing the below mentioned benefits –

• Flexible premiums
• Flexible protection
• Tax-free death benefits
• Guaranteed returns

Let’s discuss all the above mentioned benefits in detail :
Permanent life insurance
Flexible Premiums

A universal life insurance policy allows the policy owner to control the amount of premiums and payments. As per your financial condition, requirements and future planning, you have the option to increase the premium or make lump sum contributions, subject to the limits specified in your policy. The extra amount not just gets tax-deferred but also increases the cash and death benefit.

Flexible Protection

A universal life insurance policy allows its owners to select the amount of protection that best suits their family, business and all other requirements. It also permits the owners to increase or decrease the coverage as insurance requirements change. Increased coverage may be subject to various underwriting requirements.

Tax-free Death Benefits

Under current tax law in Indonesia, universal life Indonesia insurance policy provides tax-free benefits to the beneficiary.

Guaranteed Returns

Normally, there is a specified minimum guaranteed interest rate applied to the policy, which means that you are guaranteed a certain minimal return on the cash portion. However, if the insurance company does well with its investments, the interest rate of the cash portion may increase.


Universal life insurance is a great investment option because it combines the benefits of permanent life insurance with tax-advantaged investing. It includes the benefits of both term and permanent life insurance policies, which makes it a great policy for all your investment requirements. If you are interested in this type of permanent life insurance Indonesia, look for a reputed provider today to have a secure future. Make sure that the insurance provider you have selected is reputed, and answers all your questions properly.

For more information about universal life and permanent life insurance policy, visit http://universallife.co.id/universal-life