Definition Of Life Insurance And Its Benefits That Can Be Obtained

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Looking for Definition Of Life Insurance And Its Benefits? Life insurance is an insurance service or product where the insured object is protected from the life or death of a person. The focus of dependents provided by life insurance is on compensation in the form of cash to heirs for the loss of life as the backbone of the family.

Then what is the definition of life insurance?

Life insurance can be understood as a form of dependent insurance for financial compensation due to the loss of a source of family income usually generated by someone who earns a living. So, the life or life insured is the soul of the person who is the backbone.

Life Insurance Benefits

Each type of insurance has a different insurance principle. The benefits of life insurance are, of course, very diverse. Insurance functions may vary based on the kind of life insurance product selected. Life insurance benefits can be categorized based on the classes contained in insurance products which consist of:

1. Life insurance

Life Insurance And Its Benefits
Life Insurance And Its Benefits 

In this type of term insurance, the subject of life protection has a fixed period. In general, the applicable term for this type of term is from 5 to 30 dependent years.

Where within a minimum period of 5 to a maximum of 30 years, the heirs are entitled to continue to receive subsidiary funds after the death of the insurance client.

2. Life insurance or whole life insurance

Definition Of Life Insurance And Its Benefits
Definition Of Life Insurance And Its Benefits

This life insurance provides protection services to customers without age restrictions. Therefore, the customer’s life will be protected by this insurance. Even when the customer is a century old, life insurance remains valid without ever being expired.

Related:  What is the purpose of permanent life insurance? How does it coverage?

The advantage of this type of life insurance is that insurance dependents provide pension fund services so that customers who use this product can ascertain their readiness to prepare for their retirement or old age needs.

3. Life insurance and investment

Definition Of Life Insurance And Its Benefits
Definition Of Life Insurance And Its Benefits

This type of investment insurance is unique and is commonly referred to as unit link insurance. In addition to life that insurance companies can protect and guarantee, customers can also invest directly. Premiums are paid not only as a protection contribution but also as part of asset investment.

4. Dual purpose life insurance

Finally, this type of dual-purpose insurance is often referred to as end-of-life insurance. The products offered by Dual Purpose are not far from the unit link type. The difference is that unit link saves investment, and dual-purpose provides additional benefits in savings.

The premium paid by the customer is used as a contribution to the insurance protection policy, and the percentage is included in the savings of the heirs.

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