Another way to provide financial security for your spouse
Another way to provide financial security for your spouse
I. Christianto
Contributor
Jakarta
As one of the most populated countries in the world,
Indonesia has a prospective market for the life insurance
industry.
Although the number of policyholders is low, more people are
aware of the need to have insurance coverage for risks related to
health, death and retirement.
Obtaining a life insurance policy is another way to provide
financial security for your spouse and family after you die. It
also would give you peace of mind.
Life insurance comes in different packages as insurance
providers tend to make a variety of products to cater to
customers from different market segments.
They basically consist of three categories: whole life
insurance, term life insurance and universal life insurance.
Whole life insurance, also known as traditional or permanent life
insurance, offers a death benefit with a fixed premium from the
start of coverage. In addition to death benefits, it also
provides a cash value and is often linked to education insurance
programs.
Term life insurance provides protection only for a limited
period of time, and is usually used in accidental death policies
or to pay off debts or other financial obligations.
Universal life insurance is more flexible as the insured can
structure the premium payment according to his or her financial
capabilities. This insurance policy is also often linked to an
investment package.
Despite the low number of policyholders, the insurance
industry has seen steady growth in Indonesia during the past
several years. Data from the Indonesia Association of Life
Insurance show the number of insured totals 12.5 percent of the
total population, a significant increase from 1.5 percent 15
years ago. There are now more than 50 life insurance firms
operating in Indonesia, hiring over 60,000 agents across the
country.
The competition, however, remains tight. With over 50 life
insurance agencies competing against one another, the current
market is saturated.
In addition to life insurance packages, insurance companies
also offer protection for a person's health. An insurance company
will cover all medical expenses if the insured becomes sick or is
injured in an accident. The benefits are generally part of the
accidental death benefits provided by the insurance company.
Public relations manager of PT Asuransi Allianz Life
Indonesia Siti Thajeb said her company offered several insurance
packages specially designed for individual clients.
"We have a 'SmartLifestyle' product line, which consists of
various products providing coverage for every stage of a person's
life, say from the time one is born, to the start of a new job,
going through the start of a family, until one reaches
retirement," she said.
Siti said that the package was designed so that a customer
could have complete protection from a single insurance company.
There are so many choices available for you to obtain life
insurance packages but determining the best one is not easy. The
best way to pick the best product is to seek the advice of
professionals or at least from friends who have purchased the
package you intend to buy.