Life Insurance

Definition of Life Insurance
Life insurance is the definition of a transfer of risk (Risk Shifting) for the financial loss (financial loss) by the Insured to the Insurer. Risks that are delegated by the Insured to the Insurer is not the risk of loss of one's soul, but the financial losses as a result of the loss of one's soul, or because of old age so it is not productive anymore.

Concept of Risk
The economic value of the life of a head of household (the breadwinner) is equal to earnings capacity. If the economic value of the life of a family head is lost or reduced, then that will suffer directly is the loss of his relatives. The risk of loss of income is to be borne by the families left behind.
 

To reduce these risks in modern times has been taken one way to assign or delegate the risk to others, in this case the Insurance Institute which specializes efforts in this area as a profession. The delegation of the risk is more popular is called "buying a life insurance policy".

Types of risk to insured
Throughout human life is always confronted with the possibility of occurrence of events that can lead to lost or reduced its economic value. This resulted in harm to themselves and their families or other interested person. In other words, human beings always face the events that would pose risks as follows;

• Dead (death) either naturally (natural death) and died at a young age due to illness, accidents (accidental death) and others. Each person would have died, although not sure when it will happen. The death of a breadwinner will result in loss of income sources for the interested. Therefore required financial guarantee within a specified period during which abandoned have not been able to adjust to new conditions.
• Disability agencies (disability) due to illness or accident. As a result of illness or accident, a person is physically or mentally unable to work while thus affecting earnings. Whereas if a person suffers total and permanent disability, they can not work at all.
• Critical illnessCritical illness can come at any time regardless of age, whether a person is young or old. Critical illness can not be known when the arrival and can not be known with certainty.
• Old age (old age) / Retirement. Old days of events will inevitably occur, but how long it lasts the life of the old days, can not be known with certainty.
• Education. The development of the education the longer the better. The cost of a child who will continue the longer education even more expensive. Parents should be able to anticipate the development of the education very seriously, because the cost of education today and ten years would have been much different peningkatanya.

The types of life insurance policies
Of the various types of life insurance available today, there are basically three types of life insurance;

• Term life insurance (Term Insurance). Is a life insurance contract where the sum assured is paid only if death occurs within the period of insurance coverage period is still valid. Term Insurance is the simplest form of insurance and the elderly. This type of insurance is sometimes referred to as temporary insurance, according to insurance. The amount of premiums on insurance is also the cheapest compared with life insurance and life insurance Dwiguna.

• Lifetime Life Insurance (Whole Life Insurance).  Life for life insurance is designed to provide lifelong protection as long as he keeps the Insured the policy remains active with her policy through premium payments. In addition to death protection, policy in also provides a savings element which is known as cash value that arises because premiums remain.

• Life Insurance Dwiguna. This insurance is comprised of two elements, namely protection of life and savings. Mental Protection provides death protection. Savings on the insurance element is higher so appropriate for the purpose of saving money. With the savings element  higher than the Insurance Term Life Insurance and Life long

•  Life Insurance Unit-link. In addition to the above three types of policies or also called the traditional policy, the life insurance business insurance policy is also known Unit link. Unit-link life insurance policies combine insurance with investment components. This policy provides life insurance policyholder protection as well as the opportunity to participate in investments managed by insurance companies. Funds placed in the product cut for insurance coverage and the remainder is invested in units of the fund concerned.

The purpose of this policy is to invest. By linking the investment policy unit-link with the performance of a fund, the policyholder has the potential to get higher investment returns than traditional policies. Investment risk entirely the responsibility of the policyholder and the possibility of policy values ??may fall. So, even though the potential policyholder investment returns greater than a traditional policy, investment risks are also great.a