Life insurance has different benefits. Therefore, there are several types of life insurance that you need to know about. Let's look at the following types of life insurance:

1. Term Life Insurance

All term life insurance products provide coverage for a certain period of time known as the policy term. This insurance policy benefit can be paid only if:

(1) The insured dies within a predetermined period of time, and

(2) the policy is still valid (in force) when the Insured dies.

If the Insured is still alive until the expiration of the stipulated period, then the policy will give the policyholder the right to continue the life insurance coverage. If the policy holder does not continue the coverage, the policy will end and the insurance company is not obliged to provide further coverage.

The types of term life insurance coverage are:

a. Term Life Insurance with Fixed Sum Insured (Level Term Life Insurance), which provides death benefits in the same amount during the term of the policy.

b. Term Life Insurance with Decreasing Term Life Insurance, which provides a death benefit whose value decreases during the coverage period. This policy benefit starts with a predetermined amount of coverage and then decreases over the period of coverage according to the method described in the policy.

c. Term Life Insurance with an Increasing Term Life Insurance, which provides a death benefit that starts at a certain value and increases with a certain value or percentage at predetermined intervals during the term of the policy.

2. Whole Life Insurance

This insurance has 2 (two) characteristics, namely:

1. Providing life insurance coverage to the Insured as long as the policy is still valid (in force); and

2. Providing insurance coverage and contains an element of savings.

The types of life insurance coverage are:

a. Traditional Whole Life Insurance

This type of insurance provides coverage for life at a fixed premium rate (premium rate level) which does not increase with the age of the insured.

b. Last Survivor Life Insurance

This type of insurance is also referred to as second-to-die life insurance, which is a type of combined life insurance where the policy benefits are only paid after the two insured on the policy have passed away. This life insurance premium is only paid until the first insured dies or the premium can be paid until the second insured dies. This insurance is specifically designed to provide coverage to married couples who wish to have the funds to pay estate taxes imposed after their death.

c. Joint Whole Life Insurance

This type of insurance has the same features and benefits as whole life insurance for individuals except that this insurance covers two lives in the same policy, often called first-to-die life insurance because after the death of one of the insured, the death benefit in the policy will be paid to the Insured who is still alive and the policy coverage ends.

3. Endowment Insurance

This type of insurance provides a certain amount of benefit whether the insured lives until the end of the insurance period or dies during the insurance period. Each endowment life insurance policy has a maturity date, which is the date of payment of the sum insured by the insurance company to the policy holder if the insured is still alive. The maturity date will be reached at the end of a predetermined period of time, or when the Insured reaches the stipulated age.

4. Unit Link Insurance

Unit-linked insurance is insurance that combines the benefits of insurance with investment. The premiums paid will be allocated into two separate management mechanisms, namely basic premium management for protection purposes and investment premium management. Investment premiums are managed by the investment manager or company investment experts. By purchasing a unit-linked product, an insured person can benefit from insurance protection as well as a return on investment. Unit-linked products in Indonesia are generally administered by life insurance companies.

Those are the types of life insurance in Indonesia, quite varied, right? Of course, it is necessary for you to remember that before buying a life insurance policy, you are obliged to understand the insurance product that will be selected. In addition, make sure that the insurance company you choose has been registered and supervised by the OJK so that you don't experience unwanted losses.

BNI Life Plan Multi Protection is the right solution for those of you who want to meet various needs of individuals and families, by ensuring the availability of funds in the future through flexible premium payments. Also equipped with additional insurance to meet your needs.

Source: OJK.go.id