Many Benefits: Sequis Life Boss Reveals the Positive Side of Unit-Linked Insurance

Many Benefits: Sequis Life Boss Reveals the Positive Side of Unit-Linked Insurance

Jakarta, CNBC Indonesia - Unit-linked insurance (PAYDI) products, which combine insurance and investment, have seen a slight decrease in their contribution to total life insurance premiums in 2024. However, these products are considered to offer many benefits to the public.

President Director and CEO of PT Asuransi Jiwa Sequis Life, Ted Margono, stated that unit-linked products are targeted at a wider audience by reducing the costs that prospective customers need to pay, making them more affordable for those in need.

“However, there has been some pushback, as people want to combine investment and protection functions. We need to ensure that these products are beneficial when the people who buy them have a better understanding of financial literacy, so they understand the risks involved,” he explained.

Despite this, he acknowledged that no single insurance product is inherently better than others. According to him, the key difference is that unit-linked products can meet customer needs according to their specific requirements, while the company can maintain the performance of the underlying assets.

“We need to manage the assets entrusted to us by customers in a way that ensures stability, growth, and the ability to meet their long-term needs,” Ted added.

To increase the penetration of unit-linked products, Ted said that they are taking two approaches. First, they are collaborating with various parties, such as financial institutions, to offer these products.

“We are also proactively creating programs to educate the public through various forums and communities, providing education on how we manage funds. From this, we hope they will better understand the performance and benefits of insurance products,” Ted emphasized.

For information, the Financial Services Authority (OJK) recorded premium revenue from the unit-linked insurance product line at Rp39.13 trillion as of November 2025.