One of the products from insurance companies that provide various kinds of protection is life insurance, where this type of insurance is widely used by people today to protect themselves. Especially with the existence of one of the advantages of life insurance which provides security guarantees and a sense of comfort, especially in financial planning.
Because basically life insurance is a product that provides protection from any risk after death or physical disability that can occur at any time. When this happens, the family left behind will receive financial security from the insurance. then what are the benefits and advantages of life insurance, let’s look at the following review!
A number of benefits or advantages of life insurance
Life insurance is one of the insurance products that provides a lot of benefits with various advantages, so let’s look at some of the advantages obtained from the following life insurance!
Can Protect the Insured From Various Risks
The main benefit or advantage that you will get as an insured when you have life insurance is that you can be protected from various risks or disasters that may occur in the future. For example, there is a risk of death that cannot be predicted when it occurs and even accidents that can happen anytime and anywhere, so that it can cause loss of livelihood.
However, with life insurance, you will handle various risks that occur to your family, because the insurance company will provide a sum of money to the insured family when the risk occurs in accordance with the applicable policy. Even in life insurance products, apart from providing protection from death, it will also provide protection from the risk of permanent total disability.
This means that later you as the insured will receive insurance benefits of 100% in the form of sum assured or in accordance with the agreed policy and will generally be provided with a lump sum payment system. However, if at the time the insured experiences total permanent disability due to an accident, then the insurance will end.
Guaranteeing and Ensuring the Survival of the Heirs
The next advantage that can be felt by the insured’s family from the excess of life insurance is to ensure and guarantee the survival of the insured family, especially if they no longer have a livelihood. With these advantages, it will certainly help you in preparing for your family’s future from any sudden risks.
Among them, such as being able to help prepare children’s education for a financial life that is free and more protected from risks. Even people who have registered with life insurance, that person has taken care of their family and loved ones from the risk of financial loss and can free the heirs from various burdensome dependents.
So with life insurance you can maintain the financial continuity of the family in the future due to greater financial losses.
Can Help Financial Management Well
The advantage of the next life insurance product is that it can be used as a component of the best family financial management in the future and to be free from the threat of risk. Because life insurance can work as financial protection so that it can be more stable even though there are unexpected risks in the future.
That way later you will commit to leaving a small nominal of your income to pay for life insurance in a disciplined manner so that you can feel the various benefits of financial protection in the future. Indirectly you can become more efficient and wise in managing the income and expenses of the money generated.
In addition, with life insurance, you can also be helped in allocating funds for the future so that they can be processed properly and correctly. Especially if you are the type of person who tends to be extravagant, then by having insurance you can certainly help in saving expenses by saving or setting aside some of your income to pay insurance premiums.
By paying the premium regularly, you will get insurance benefits to prevent various risks or financial losses in the future. Where the insurance benefits can be used for needs when a risk occurs to your family.
Provides a sense of calm and security in the future
The next advantage of life insurance that can be directly felt is that it provides a sense of security and calm when there is a big risk that occurs or minimizes the risk. Therefore, having life insurance is the same as preparing or being able to cope with all possibilities that can occur in the future.
In essence, you will feel more secure and calm when you have life insurance, because you can cover all possibilities or financial losses that occur. Because life insurance is not much different from an emergency fund when an unexpected event occurs, even when the backbone of the family is no longer able to support it financially.
There is even life insurance with unit-linked products that can provide two benefits at once, namely in the form of coverage and investment returns. This means that in addition to the sum assured given to the heirs, it will also be added to the investment results that you make. That way you will feel safer if when there is a big risk then you don’t have to worry about financing, because it will be covered by the insurance.
Can Help Prepare Retirement Funds
The next advantage that will be obtained from life insurance is that it helps in preparing retirement funds at old age, you can take advantage of life insurance with unit-linked and dual-purpose types. Because with this type of insurance product, it can help you as a policy holder to accumulate retirement preparation funds in old age.
In addition, you can also take advantage of this type of life insurance product to save and protect or protect your life from any risks that occur. So having life insurance is very beneficial for a better life and also has a big impact in the future, especially in retirement age or old age.
In addition, the sum insured obtained from life insurance can be used to finance the lives of parents who have retired, so you don’t have to worry anymore. You can even use whole life insurance products for long-term savings until old age, including leaving an inheritance for your children and grandchildren. Because this product can also disburse the insured’s premium if there is no life insurance claim until the end of the insurance period and also protects the life.
So, those are some of the advantages of life insurance that you must know and consider having, hopefully it will be useful and thank you.