Types of Life Insurance: Term, Whole Life and Endowment

Types of life insurance are not the same thing as life insurance products. Every insurer offers different products, but the underlying types are always the same, and insurers build their life insurance products from them. Life insurance is now popular with many people because awareness of the risks of illness and death is growing. No one can predict when these risks will strike, but people can prepare for them, and one way to do so is to take out life insurance. It matters most for your family when only one person in the household is the breadwinner. With income coming from a single person, any risk that hits that person puts the whole family's finances in danger. Here are the types of life insurance you should know:

Term Insurance

The first type of life insurance is term insurance. Policyholders are covered only for a set period. One advantage is the freedom to decide how much premium to pay each month, so you can match it to your financial means. Another advantage is that the sum insured can reach billions of rupiah. If the person covered by the insurance policy suffers a covered risk, or even dies, the payout can reach billions of rupiah. The drawback is that policyholders can lose the policy or the premiums they paid if neither the policyholder nor the insured person has a health problem or dies before the coverage period ends.

Whole Life Insurance

One type of insurance that benefits policyholders is whole life insurance. It protects the insured person up to age 99. Its advantage is that the policyholder gains both the policy and a cash value from the premiums already paid. Policyholders who pay their premiums regularly also earn added value, and they can make use of the cash value of those premiums. The drawback is that the premiums are higher than those of term insurance. The reason is that life expectancy in Indonesia is only around 65 to 80 years, so early claims are bound to occur.

Endowment Life Insurance (Dwiguna)

The third type of life insurance you can choose is endowment, known in Indonesia as Dwiguna. This product is a term insurance that can also serve as savings. Policyholders receive two benefits at once: the value of the premiums they have paid, and the option to withdraw the policy early, before the coverage period ends.

If you want to become a life insurance customer, you can sign up with Panin Dai-ichi Life. Its products are varied, for example Panin Premier Multilinked and Prime Crisis Cover. Both of these life insurance products can benefit you because they can protect your whole family and cover critical and chronic illnesses. Panin Premier Multilinked is a whole life product because the insured person can be covered up to age 99.

Read also: 5 Life Insurance Benefits You Need to Know