Tampilkan postingan dengan label Polis Asuransi. Tampilkan semua postingan
Tampilkan postingan dengan label Polis Asuransi. Tampilkan semua postingan

This Is Your Children's Future


We worry about our kids: their well-being and happy future are our main concerns in life. We long for them to be content and successful at whatever they choose to do. We hope that we'll be able to provide them with the same kind of help that many of us have received from our own parents. But how can we ensure that we're doing everything in our power to make all of this come to pass?

We can, but there's a process. First, take a few steps back and consider what we truly want for our kids. For example, when I asked a client of mine recently to think carefully of the three things she wished for her children, who range from 16 to 9 years of age, she responded "I want them to be loving, compassionate and responsible adults." There was no mention of rich, famous or powerful. This mother really got to the root of what she knew to be the crucial characteristics necessary for her children to live happy and fulfilling lives.

Once we have this kind of clarity about the things we really want for our kids, we can then move forward towards instilling those traits in them. But first we must be completely clear. Here what to do:

1. Make a list of what you want for your kids. Be sure your list is unselfishly motivated! Financial security, love, happiness...even for them to be blessed with kids just like them! That's what my Mother wished for me and it came true.

Once you have come up with a list of perhaps ten items, start from the top and compare the first two items. Which is most important? Take that choice and compare it to the next item on the list. Again, which is most important? Continue doing this until you have gone through your list and the item that remains is your number one choice.

Repeat the process for your number two, three, four and five choices. This is a list of the five most important things that you want for your kids. Having prioritized, now you can do your best to assist in creating a wonderful future for your kids.

2. Important rule: You are not making decisions about your children's personal future. That's their responsibility and their right to determine. However, as a parent, you are certainly able to influence their future.

3. As an example, let's say that Financial Security is on your list. Do you know what it takes to create financial security? Think of people who have managed to achieve financial security on their own. What traits do they share? Perhaps you determine that responsibility is one of those traits.

How do you create responsibility? What do you know to be true about responsible adults? My own personal opinion is that these adults were taught early on about responsibility through actual experience. For instance, most of them probably had specific chores they did at home. Several probably worked in the summers. Many of them may have learned early on to take responsibility for their own lives and not place blame on others nor make excuses. At an appropriate age, the majority were undoubtedly taught to make decisions on their own and suffer the consequences. They learned not by being told what to do but in the actual doing.

Responsibility, coupled with other strong traits you might identify, will assist your kids in taking charge of their lives.

Be forewarned: It is so much easier to just let them do what they want versus being a watchdog. Teaching a child responsibility, or anything else for that matter, takes patience, determination and commitment.

4. Be a role model. Our kids model themselves after their childhood experiences and especially as they saw their parents. As much as we said we would never be like our own parents, how many of us can see our parents in ourselves? If you want your son or daughter to be responsible, be responsible. By being a true and consistent role model, you can have the most profound influence on your children.

5. Who is this child? I love the story a friend told me recently. Her son in New York City had a visitor, a young woman in her third year of college. After spending a week together, the student admitted that her major, biology, was not what she wanted to pursue but rather what her Mother suggested. She wanted to be a fashion stylist! How could her Mother have missed that?

Do you know what excites your kid? What moves them? What they love to do? Who they really are at their core? Honoring them for who and what they truly are is the greatest gift you can give your son or daughter. Take the time to connect with them and really listen. Listen on a level where you really are hearing them.

6. Praise the positive and attempt to minimize the negative. Of course you establish consequences for unacceptable behavior. But positive reinforcement is a much more powerful tool. It's Pavlovian conditioning and it works.

7. I love this quote: "Expectations are predetermined resentments." Don't set yourself up for disappointment. If you are looking for fulfillment, look to yourself, not to your children. Don't attempt to live vicariously through them. It will only end in unhappiness for everyone involved.

8. Try to remember what really ticked you off about your own parents when you were their age. Not that it was valid. Remember we were just kids and reacted in a childish manner much of the time. But it will help to empathize with how your own children are feeling, to understand their frustrations and to be able to communicate in a more effectual way.

Almost all of us find our way in life but it is so much easier if we have the necessary tools. You know now what you wish your parents had said or done back when. Break the chain! You are the most important person in your child's life; you can provide those tools. That is how we ensure that their future is bright.

You can live a life that truly works and you can achieve peak performance in all areas of your life. You can not only survive life’s unexpected changes and transitions but also thrive. Powerful change is possible. You are fully capable of creating a life that you choose.


Polis Asuransi Keluarga

Why Do Children Need Insurance?


Why would I ever buy my children an insurance policy? They have no dependents, no assets to protect, no charitable foundations to provide and obviously no spouse depending on their income. So, why would anyone consider young children when buying an insurance?

Death is the number one reason, period. God forbid the worst thing could happen, you're still faced with thousands of dollars in funeral expenses. Regardless of how morbid you may feel about taking out a policy on your child, the fact remains, unless you are able to write the check as easily as paying for gas at the pump, this is a big expense. Health remains the single largest reason people pay considerably more or declined all together for life policies. Sure, ten toes, ten fingers is great news the day they're born, but if additional health issues pop up later in life they may not qualify.

The good news, chances are they'll never pay less then now. If you're currently over 35 and have looked in to coverage for yourself I bet you wish you would have gotten that life policy a few years sooner. Setting your child up now when they're young and health may make a huge difference in being able to afford or even qualifying for a policy later in life. The beauty is you can be creative when coverage's. Add them to your policy or take out a separate cheap term online life insurance policy and most companies will allow you to convert to a permanent policy later. Setting up a policy now insures life insurance guaranteed in the future.

Some policies, such as Universal Life and Whole Life allow for accumulation of cash. Wow, so now you have two benefits in one; guaranteed coverage and the ability to save money for the future.


Polis Asuransi Keluarga

Baby Insurance: An Investment in Their Future


Baby Insurance is a great and affordable way to prepare your child's financial future. Parents think about their new bundle of joy. Parents think about all of the harms that may come to them and joys they will eventually bring to this world. Parents also question, "Will they be safe at night, is that a good toy, is he learning up to grade level?" Who is she bringing home for a first date? Did he get into the right college for him? We think about all of these things. How often do Parents think about protecting their children by giving them a financial head start?

Baby life gives your child a financial head start in an affordable way. Most parents say, life insurance, how can that help my child? "Isn't life insurance for dead people?" No, it is not. Life insurance is for the living.

In order to understand baby life, and insurance in general, you have to understand why it evolved in the West. Insurance evolved to protect shipping cargo coming from the East Indies. A group of investors would pool their resources together and "underwrite" their name on the ships manifest saying they would invest in a portion of the cargo, therefore protecting themselves from all the risk. They were in effect sharing a financial risk of the voyage and gaining financially when they voyage was successful. If we think about baby life insurance as insurance on your child's life cargo, his or her creative potential, you can start to see, feel and understand the ways life insurance can be used in life, not death.

Baby life is a way to have someone else share in the financial risk of your child's voyage. The next question of course is, "How can purchasing a baby or children's life insurance plan protect my child's future?" Children and baby life insurance plans are usually exceptionally affordable whole life policies. The best and unique thing about about these and other whole life policies is they build up what is called a cash value accumulation. This cash value accumulation is the financial vehicle you are using to help your children get a financial head start in life.

If you believe something is better than nothing than what I am about to say will make sense, dollars and sense. This cash value can be borrowed against when you need it. When you buy only a $100,000 insurance policy for you child today, in twenty years you have built them a nice chunk of cash they can use and or borrow against without having to get a banks approval letter to start a family or business. The best part most youth insurance policies is, you do not have to give it to them until they are twenty five; which is about the time most youngster have finally settled down.

Most people agree if they had a chunk of change to buy their first house they would have been eternally grateful to their parents. When we think about baby life insurance as a financial instrument for life your children can use to get ahead of the crowds in life, baby and children's life policies begin to make sense.


Polis Asuransi Keluarga

Why Do People Buy Children's Life Insurance?


Children's life insurance is a kind of stable or whole life coverage. This means, the insurance policy will accrue cash value within a specific period or determined time. Kids are not permitted (not mention able to) buy it, so parents or guardians can buy this type of insurance on behalf of their kids.

In respect to this life policy, it is better to buy it for your kids in their infancy stage and when they are in good physical condition. Parents or guardians prefer buying kid's life insurance policy, since it insures and protects their child, even if their physical condition changes. However, at the same time, kid's life insurance policies accumulate a cash value that parents or guardians can use for college expense of their kids.

Several insurance companies guarantee extra insurance policy, when the kid reaches certain age. They offer this added policy without undergoing medical assessment. The main benefit is, if the kid faces health problems and that makes insurance pricey or unavailable, he would still have the insurance coverage made available to him.

Some of the features of kid's life insurance policy include:

    It accrues Cash Value.
    Premium Stay Level
    Offers Permanent Protection
    Useful for college expenses in the future


Why Do Individuals Buy Children's Life?

Mostly, individuals purchase life policies to ensure that, the future of their dependents is secured after their death. Then, what is Children's life insurance policy? This is for the child to ensure protection against future expenses. This is very much similar to a company's provision for unforeseen events, where certain amounts are set aside for future expenditures.

It is strongly advisable on the part of life providers to obtain children's life policy for a child. This kind of life insurance policy is cheap and very helpful, if bought when the kid is in adolescent state. Remember, the kids will obtain the advantages of accrued cash value depending on the insurance policy that individuals opt for.

If individuals choose kid's life policy, they can assure that their kids are widely covered under any generative diseases, which may have serious effect on them later. It is also better to consider other reasons for purchasing policies for the kids. Individuals can use this life insurance amount for their higher studies, college expenses or overseas education.

Conclusion:

Children's life insurance policies involve considerable amounts of money. Hence, individuals have to be very cautious. A good and reliable insurance agent offers essential facts, so that individuals can select the desired policy. With kid's life insurance policy, time is surely on the individuals' side. They have ample years and decades to make a solid financial basis for their kids.

Children's Whole life insurance policy is an ideal tool to make such strong financial foundation, because it is easy and sensibly priced. In case, individuals wish to buy affordable life plans, then consider the kid's term life insurance policy, as this is much cheaper than whole life policies for children.


Polis Asuransi Keluarga

Getting the Best For Your Child's Future


Health care is a growing concern for many people. This is especially true for parents who are making sure their children grow up healthy. They follow nutritional guidelines, providing their children with all the healthy food they need as well as plenty of physical exercise. While things have changed significantly over the years when it comes to parents taking care of their children, the main goal has always been to provide them with the tools and strength necessary to go off into the world on their own some day.

One of the best ways to do this is to make sure that your child has the best health care possible. With modern advancements in technology and medicine a increasing number of severe childhood maladies are becoming less of a significant health that they were years ago.

This is why it is so important for children to be covered by low cost children's health insurance. It will help give them the chance to live their life to the fullest. And while children years ago were more likely to succumb to aliments and diseases we now consider minor, children these days are just as vulnerable to health issues, they are just generally caused by different sources. Stress in the classroom and at home, pollutants and accidents all can weaken children and if left untreated can become serious, if not deadly problems.

It is necessary for children to have health insurance coverage as soon as they are born. Because those first years of life are vital for building a solid foundation for them to grow on. This can be accomplished by regular visits to their pediatrician and you do not just have to buy cover for your child. You can add them to your policy to save money. The best thing about this it is possible to keep your children on your policy now until they are in their twenties and they can contribute.

Like many types of insurance, low cost children's health insurance can be adjusted for different levels of protection. Like other types of insurance, if you get it through the same company you are signed up for you will more than likely get a discount on the coverage.

These days one of the best ways you can help insure that your child will grow healthy is by making sure that they have the benefit of comprehensive health care. Not only will you be glad that you did, but they will be glad as well.

The easiest way to find out if it will be cheaper to put your child on a separate policy with another family member, on their own policy or on yours is to get online and compare different quotes. Doing this with your insurer will take hours and it can be confusing. Doing it online will take minutes and you can compare the cost across different insurance companies. If you are looking for low cost children's health insurance this is the best way to do it and save yourself a lot of money in the process.


Polis Asuransi Keluarga

Why is it Important That You Insure Everyone in Your Family?


Children require a lot of attention and health care insurance should not be left out. Parents and caregivers realize children need to have access to health care. Insuring your child is vital to how they grow and thrive. You want to make sure you have the money to pay for children's expenses at the doctor. Do not think that if you have an income that you will not be able to receive insurance benefits.

People with jobs that do not pay much will be able to get coverage from specific programs. Some of these government health care programs also insure children. Programs exist that help those in between low income and those able to pay insurance premiums. These programs can be essential for those who do not earn as much and help kids stay healthy. In addition to this, these programs might help cover the healthcare costs if you are a student or already accepted to receive assistance.

For those who do not earn as much, other programs offer some relief. So if you think you cannot get help because you earn a living you may want to make sure. Regulations are set by state and this is easy information to get if you go to the internet. On your computer you can see the rules. Many households with about four members with incomes around forty-five thousand a year can still qualify for these. You could also find cheaper premiums or discounts to help you insure everyone.

Several programs exist with many different associated costs and these are easy to figure out over the internet. Free shots are offered by most states to ensure children stay healthy, and you can usually find these in a health clinic. Many of these programs will base what you can get for your kids on your income. The idea here is that well care the best way to ensure that children live healthily. Applications are available over the internet and so you can get your insurance quickly and efficiently.

People who do not make the threshold they impose for this kind of program might want to consider they may make enough to pay the full amount out of pocket. Quite simply, you will want to check your money flow to see what and where you spend your money. You may find the extra monies you lay out for a drink or quick snack would end up covering the amount. Those who are smart and find out they are buying too much know they need to save. It is a good idea to stop spending so much. What you want to do is save the amount you spend and use it to pay for health care insurance.

Don't forget how necessary health insurance for students is when the darlings go off to school. Keeping good health insurance will give them a better chance to graduate successfully.


Polis Asuransi Keluarga

Insurance Policies For Students and Teenagers


When a teenager gets a license, it’s probably the first time he or she focuses on insurance. And as young people graduate from high school and head off to college or enter the working world, there are lots of insurance matters for young people out on their own for the first time to think about.

AUTO

Teenage drivers represent the highest risk segment of the population and are involved in more serious and fatal accidents than anyone else. From the insurance company’s standpoint, high risk requires a higher insurance premium. Teenage drivers can add anywhere from 50 and 100 percent to the cost of a family’s auto coverage. Generally, it is cheaper to put a teenage driver on the family policy. Driver education and good student discounts can take the sting out of that to some extent. Many states have graduated driver licensing programs which phase in driving privileges and give teens driving experience under controlled conditions allowing young drivers to demonstrate good driving habits and gain experience. Pick a safe car to drive – the model chosen greatly affects the cost of insurance. If a college student does not have a car during the school year (many schools restrict cars on campus for the first couple of years) and attends a school at least 100 miles from home, tell the insurance company. Rates may be lowered significantly for the period the student is not at home.

HOME

There aren’t many “student homeowners.” But they have “stuff” that needs protection, which usually comes through homeowner or renter insurance. If a student lives at home, or in a college dorm, their personal possessions, including a computer, stereo, television, clothing and such items are covered by the family’s policy. If they have any items of exceptional value, it’s a good idea to have a separate endorsement on the policy. If a college student lives off campus, the family policy will probably not cover them. They should consider purchasing separate renter insurance.

LIFE

Life insurance protects a family’s way of life. As students approach college, not only are families focused on how to pay for it, they should also be thinking of how to keep things on track if tragedy strikes. Life insurance, whether whole life or term, is one way to ensure that resources will be there for your student to finish college if something happens to one of the family breadwinners. At a minimum, families should think about a limited policy that would cover burial expenses if a child is killed in an accident.

HEALTH

In most cases, a full-time student will be covered in the family’s health plan until he or she graduates from college, or remains a full-time student up to 23 years of age. However, if the parents belong to a closed-network HMO that doesn’t provide non-emergency coverage in the school’s area, a separate policy for the student should be considered. Most colleges have a clinic on campus and may offer supplemental insurance as well. If a child gets sick and has to temporarily drop out, parents might want to consider having tuition insurance. Otherwise, even though the child has left school, the family may be on the hook for the tuition.

DISABILITY

Disability coverage provides for lost wages in the event you are injured and unable to work. Most part-time jobs do not include such benefits, so disability insurance is unlikely to be provided by employers to students who work while going to school. For parents who are paying for their children’s college education, disability insurance would ensure that resources are there should the primary wage earner become disabled and be unable to work.

LONG-TERM CARE

The younger and healthier one is, the less paid for insurance. But long-term care insurance is generally not an insurance priority for a young student unless there are extenuating circumstances.

FINANCIAL PLANNING

Helping your student establish a solid financial foundation -- managing student loans, credit cards and day-to-day finances -- will help them in many ways, including getting insurance at the best possible rate. In many states, insurers use information from credit reports, along with other underwriting factors, to help determine who qualifies for insurance and what they pay. As a result, it’s important to avoid graduating from college and burdened by consumer debt in addition to student loans. Establishing a budget is a good first step. Parents may want to set up a debit card account for their student. Cash can be added conveniently to the account when needed, and expenses can be reasonably monitored.


Polis Asuransi Keluarga

Getting Old? Here Are Insurance Policies For Senior Citizens


By the time you retire, your accumulated wealth is probably at its height. The challenge now is to manage your assets so that they last as long as you do. Insurance still plays an important role at this stage of your life.

AUTO

Mature drivers are some of the safest on the road. They have fewer accidents and tend to drive safer cars. Some insurance companies give discounts to drivers between the ages of 50-70. As drivers age, however, their abilities change. Older drivers, those 70 and older, have higher rates of fatal crashes, based on miles driven, than any other group except very young drivers. These older drivers should expect to see their rates begin to rise. Many states mandate discounts for seniors who have successfully completed driver refresher training.

Seniors are the most experienced drivers on the road. And mobility is vitally important to this group, particularly where public transportation is not readily accessible. Yet, as a group, older drivers, particularly after the age of 70, are involved in more serious accidents. Because of their age, they are increasingly vulnerable to serious injury. In most cases, seniors themselves, sensing that their physical skills are not what they once were, begin to restrict their driving – limiting themselves to daylight hours and familiar roads, for example. And while many states require more frequent vision and, if necessary, driving tests later in life, it appropriately should be an individual and family decision when it is no longer safe to get behind the wheel.

HOME

Unlike auto insurance, where the state sets minimum coverage limits, the bank that holds your mortgage usually requires you to have homeowners insurance. Once you pay off your mortgage, it’s still important to have protection in case of fire, burglary, and natural disasters. Many insurance companies provide discounts for retirees, because they spend more time at home; take the time to properly maintain their property; and are more likely to act promptly to correct small problems before they become big problems.

Some retirees stay active by working part-time. If you work at home, you may need a supplemental liability policy that covers your work-related activity. Consider also an umbrella policy to protect your accumulated assets. Real estate, securities, and savings could be wiped out by one lawsuit. Umbrella coverage adds another layer of protection above what is provided in your standard homeowners and auto policies. Generally, it is relatively inexpensive, and provides an additional million dollars or more in liability insurance.

LIFE

Life insurance is cheaper the earlier in life it is purchased. Retirees can still get life insurance, but should be prepared to pay much more for it. For those who already have coverage, premiums will generally move higher as existing term insurance reaches the end of a set policy period and is up for renewal. Cash value coverage tends to have a set premium that was locked in years earlier. In order to preserve the benefit for a surviving spouse, it is necessary to continue to pay the premium.

HEALTH

Most people under 65 get group health insurance through their or their spouse’s job. Group health insurance costs less than individual health insurance. Most people who are 65 and older get insurance from the government. Hospital Insurance helps pay hospital bills; and Medical Insurance helps pay for doctor bills.

Individuals who are still working and not covered by a employer-provided group health plan, need these insurance policies. It’s best to keep the coverage for as long as possible. Some employers may not continue health care coverage for long-time employees when they retire.

LONG-TERM CARE

Long-term care insurance is purchased from private insurers. It is designed to pay for the many services needed by people who suffer from chronic long-lasting illnesses and need regular care, usually in a nursing home, but in some cases in-home care. For those who have this coverage, at least two activities of daily living, such as bathing, eating, dressing, continence and mobility, and/or cognition must be lost in order for the coverage to take effect. While this primarily affects the elderly, a substantial number of cases involve people under the age of 60.

FINANCIAL PLANNING

Married retirees need to review their financial situation and determine how much income a surviving spouse would lose. Such income losses frequently result from reductions in Social Security payments. For example, a husband may receive $1,500 a month in benefits while his wife gets $1,000 a month, for a total of $2,500 a month. If the husband dies, his widow would get his $1,500 payment but she would lose her $1,000 payment. That could be a 40% reduction in family income. A substantial loss of income also can result from reduction in pension or annuity payments. The investment strategy for seniors should emphasize income-producing and liquid instruments that can supplement retirement income.


Polis Asuransi Keluarga

Raising Children? Here Are Your Insurance Policies


Children are the future. We need to plan for their future and we need to protect it. As the saying goes, it will be here before we know it. A family’s insurance and financial needs will grow and change over time as we take steps to manage our finances; and protect our property and lifestyle against significant changes in our life or health.

AUTO

As the children grow up, families spend more time in the car – or so it seems – dropping kids off at school, driving to basketball or soccer games and other youth activities. But, as parents, we tend to become more careful behind the wheel and generally enjoy lower insurance rates. The family car is not likely to be a Ferrari, but a mini-van, which is less costly to insure. It’s important to pay attention to the children’s safety. Infants should ride in car seats that are properly installed. Youngsters should sit in the back and wear seatbelts. Parents should set a good example, even if the police don’t write tickets for non-use of seatbelts as a primary offense. The insurance industry supports the presence of side and smart air bags, which are less likely to cause injury if deployed and more likely to save lives in the event of a serious accident.

HOME

With children, we acquire more “stuff,” particularly electronic equipment. Between homework research on the Internet and after-school relaxation, we now tend to have multiple televisions, computers and stereos in the house (with the volume too high). Make sure your homeowner’s insurance keeps pace with a growing family. The larger the home, the more it will cost to insure it, because the insurance company is assuming more risk. Consider inflation protection so that the homeowners insurance automatically rises with property values in your region. Safety features such as alarm systems, smoke detectors, strong doors and deadbolts not only keep the family safe, they save money because they reduce the likelihood of insurance claims. If you plan to add a family dog, check with your insurer before bringing home an aggressive breed. If you have a backyard pool, trampoline or swing set, consider increasing your liability coverage through an umbrella policy in case someone is injured while playing on your property.

LIFE

Couples should take a close look at life insurance once children arrive. This is when it hits home that others are depending on you and your income. You want to be sure the family has the resources to maintain the home and have all the opportunities you want them to if you are not there. If you don’t have a strong savings program, a small life insurance policy on your children may make sense.

HEALTH

Most people get their health insurance through an employer. These plans include family members. Medical inflation is rising dramatically today and employers are increasing the amount they expect workers to pay as they cope with health care costs. Families with two working spouses should compare coverage, co-pays and costs and choose the best mix that offers the best coverage for the least amount of money.

DISABILITY

When you are a relatively younger, you are four times more likely to be disabled than to die. Thankfully, neither one is likely, but it is something to strongly consider, particularly if your lifestyle would be threatened if you are physically unable to work. Most large companies offer group disability coverage. Small companies may or may not have similar coverage.

LONG-TERM CARE

Middle age is the best time to consider whether to buy long-term care insurance. This is when you will most likely to be eligible and when the premiums will be the lowest. A healthy 65 year-old person can expect to pay between $2,000 and $3000 a year for a policy that covers nursing home and home care.

FINANCIAL PLANNING

If kids were born with a price tag on how much they cost through age 21, we’d undoubtedly have a moment of sticker shock. But once children come into our lives, it’s time to really get serious about a savings program. A major issue for families with children is how to best prepare to send the kids to college. The cost of tuition and room and board for four years now approaches $40,000 for public universities and exceeds $73,000 for private schools. In general, most students qualify for some kind of financial aid. But the current budget squeeze is requiring schools to raise tuition to close budget gaps, so costs are increasing in double-digits in many cases.

There are a variety of plans available that are geared towards educational expenses. Depending on qualifying levels of income, contributions to these accounts may be tax deductible. In both cases, money grows tax-deferred. In both cases, proceeds are not taxed if used for qualifying educational expenses. Parents serve as custodians during the early years, but when your kids reach the age of 18, the money is theirs and they can spend it any way they want.


Polis Asuransi Keluarga

Insurance Policies For Married Couples


The joining together of two lives is joyous. It’s also nerve-wracking. There are a number of adjustments couples have to make when thinking and planning for two. They may need financial protection they haven’t worried about before, because spouses now depend on each other for support. In merging two households and perhaps two careers, there are choices that couples may need to make as to which spouse has the best existing insurance coverage.

AUTO

Young single people tend to pay higher rates for insurance. Good news, when two people get married, they probably qualify for a discount. Couples may well bring two cars into the relationship and two insurance companies. Review existing coverage and see which company offers the best combination of price and service.

Your driving ability may not be all you have to worry about. At some point, couples may need to participate in a family decision in helping parents or in-laws decide when they should stop driving. Driving ability is not strictly a matter of age. There are middle-aged drivers who are terrible and there are older drivers who are highly skilled and perfectly safe. Yet, as a group, older drivers, particularly after the age of 70, are involved in more serious accidents. Because of their age, they are increasingly vulnerable to serious injury. Many seniors themselves decide as they get older to limit their driving to daylight and roads they are familiar with. And while many states require more frequent vision and, if necessary, driving tests later in life, it often falls to the children to help parents decide when it is no longer safe to get behind the wheel.

HOME

When buying a home, the insured value of the house will be less than the market value. Don’t be alarmed, because there is no need to insure the land the house rests on. The insured value needs to be sufficient to repair or replace the home if there is a major disaster. Over time, be sure that the coverage keeps pace with additions or major improvements that increase the value of the home – and the cost of repairing it. Set the deductible on the policy – the amount the homeowner is responsible for before insurance is triggered – as high as your financial circumstances allow. The higher the deductible, the less the coverage will cost. A higher deductible can also mean fewer claims, another important factor in the cost of coverage.

Ironically, homeowners or renters insurance questions frequently begin when couples buy engagement and wedding rings – things of actual as well as symbolic value – or accumulate expensive household items. A standard homeowner policy includes a limit (usually a fixed percentage of the broader coverage) on personal possessions, so an endorsement or floater may be needed to cover high value items. Merging two households presents a good opportunity to do a home inventory. This helps couples understand what their insurance coverage needs are – and provides have a record of what to claim if a real disaster strikes.

When arranging homeowners insurance, one important decision involves replacement cost versus actual cash value coverage. Replacement cost is what it suggests. It pays the dollar amount needed to replace a damaged item with one of similar kind and quality. Actual cash value covers the amount needed to replace the item, minus depreciation.

LIFE INSURANCE

Becoming a couple means sharing responsibility with and for someone else. Both spouses may work, building a lifestyle that depends on two incomes. There will be loans and other debts to pay off. At this stage, it makes sense to protect what you have. Life insurance is a traditional way of ensuring that the surviving spouse is taken care of in the event of a tragedy.

The primary purpose for life insurance is to provide a spouse, children or other beneficiary with resources in the event of the premature death of the other spouse. There are two basic types of life insurance:

Term insurance provides a simple death benefit for a fixed period of time. There are several different types of term insurance – renewable, convertible, level, decreasing and increasing term coverage. The premium may stay the same for many years. However, when the stated term expires, the premium can go up; and Cash value insurance, as the name implies, provides permanent protection as long as you pay the premium. The premium does not increase over time. The younger a person is when buying the policy, the lower the premium will be for the life of the policy. But because premiums remain level, cash value coverage tends to be more expensive than term insurance. There are different types of cash value or permanent insurance as well – whole life, universal life, variable life and variable universal life insurance.

HEALTH

Most people who work full-time get health insurance through their employer. Along with bringing two lives together, if both spouses work, the marriage also brings two health insurance plans. These health plans frequently include dependents.

Medical inflation is rising dramatically today and employers are increasing the amount they expect workers to pay as they cope with health care costs. In certain cases, they may not cover a family member who has another health care plan. If you have a choice, families with two working spouses should compare coverage, co-pays and costs and choose the best mix that offers the best coverage for the least amount of money.

DISABILITY

Should a sickness or illness prevent one spouse from earning an income in his or her occupation, couples can face severe economic impact. Many employers offer an option of disability coverage. Typically, disability insurance is designed to replace anywhere from 45-60% of gross income. If the employee pays for disability coverage, insurance proceeds are tax-free. However, if the company pays for the coverage, this is viewed as a benefit and it is taxable.

LONG-TERM CARE

Each year, the elderly population continues to grow. Due to advances in modern medicine and life-style changes, the number of people over the age of 65 is projected to double by the year 2050. Unfortunately, as people age, they are more likely to suffer from chronic illnesses such as strokes or Alzheimer’s or the aftermath of strokes. Statistically, people over the age of 65 face a 40% risk of entering a nursing home for long-term care services. Long-term care safeguards couples from losing their most important asset -- the home -- if either one gets sick and must be cared for. Middle age is the best time to consider whether to buy this insurance. Premiums will increase as individuals reach their ‘60s and ‘70s. This coverage must be purchased before the age of 80. A healthy 65 year-old person can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing home and home care.

FINANCIAL PLANNING

 At this stage, financial goals may include both saving for retirement and saving for a specific purpose. Some investments can be long-term. Others perhaps need to be more liquid. For example, newly married couples may want to save aggressively for a home. If both work, one strategy might be to live off of one salary and save the other.

Joint income could put a household into a higher tax bracket, which places greater emphasis on means of deferring taxes on this income. There are a number of Retirement Account options. In 2003, both spouses can each put $3,000 into an account. Depending on a household’s adjusted gross income, these contributions may be tax deductible. The earnings grow tax-deferred until proceeds are drawn out later in life. The level of contributions will increase by $1,000 each in 2005 and 2008. However, with the exception of an account to fund a child’s college education, there is a hefty penalty for withdrawals before age 59.


Polis Asuransi Keluarga

Still Single? Here Are Your Insurance Policies

You are part of the work force and out on your own. Establishing a solid financial foundation should be a priority, including insurance in the mix. It’s important to understand what affects the cost and availability of insurance. If you have accidents, insurance will increase in cost. Financial instability, getting smothered by credit card debt, is frequently a predictor of future insurance losses. As a result, an insurance company may see additional risk, making it more difficult to get coverage at the best possible price. Conversely, if we take care of ourselves and protect what we own, insurers will see good insurance risks and are more likely to compete for your business.

AUTO

What you pay for auto insurance depends on several factors: prior claims; driving record, including speeding and other traffic citations in recent years; and the kind of car, how many miles and where you drive. For example, people who generally drive to and from work in or near a major city will tend to pay more for auto insurance than drivers who live in rural areas, have short commutes and primarily use their cars on weekends for pleasure travel. A car that is popular with thieves or has expensive repair costs will cost more to insure. You can lower your insurance premium by raising the deductible, installing anti-theft devices, and dropping collision coverage if it’s an older car.

HOME

People who rent their home often make the mistake of thinking that the landlord’s insurance covers their possessions in case of a fire or other catastrophe. Not true, you need your own insurance. Relatively inexpensive, renters insurance protects the things that you own. It provides liability coverage, protection from lawsuits resulting from harm that you, your pets or your family cause to other persons or damage to their property. Renters insurance also helps you establish a good insurance track record, or loss history. If you show that you are a responsible insurance risk, you’ll have no trouble getting insurance when you eventually buy your own place.

If you are living in a condo or coop, you depend on two insurance polices for protection: your own coverage and the insurance purchased by the condominium or co-op board for the common areas of the property that you share with the other owners, like the roof, basement, elevator, boiler and sidewalks. The condo or co-op association may be responsible only for insuring a unit up to its bare walls, floor and ceiling. The owner may have to insure kitchen cabinets, built-in-appliances, plumbing, wiring, bathroom fixtures and so on. Read the association’s bylaws and/or proprietary lease to better understand where the association’s responsibility ends and yours begin.

If you’re buying a home, and have a mortgage, in most cases you will need to purchase homeowners insurance. The cost will vary according to the size and construction of the home; where it is (proximity to the coast or other natural hazards, e.g. fault line, wildfire zone); fire safety features; anti-theft devices; and the property’s loss history. Insure your home for the cost of rebuilding it, not the market price. And make certain that the value of your insurance policy is keeping up with increases in local building costs.

LIFE

Your parents probably have life insurance which will be part of their estate. But now that you are on your own, you have to think about your own insurance needs. When you are young, your life expectancy is high, which means the cost of life insurance is low. Life insurance becomes increasingly important if you have others who depend on you, including aging parents.

HEALTH

Once you are out of school or older than 23, your parents’ health plan won’t cover you. As you sort through job prospects, it’s tempting to go for the opportunity that puts the most dollars in your pocket. Health coverage is perhaps the most important job-related benefit you can get. Many companies have coverage through a managed-care plan, which means that many decisions, including which physicians are included in the network, are made by the healthcare provider. Others have more flexible plans that allow their employees to choose their physicians. In both cases, the employee is responsible for some co-payments which help keep costs under control.

DISABILITY

When we are young, we feel indestructible. In fact, at this stage, we are four times more likely to be disabled than die. Many employers offer an option of disability coverage, which provides for lost income if you are injured as a result of non-work activities and unable to work. Most large businesses offer disability coverage. Smaller businesses may not. If the injury is work-related, then workers compensation coverage applies.

LONG-TERM CARE

The good news is we are living longer. The challenge is how we as a society will meet the expanded need for care for an aging population. In many cases, the immediate question is how to best care for aging parents. Increasingly, late in life, children serve as guardians for their parents. There are many options for custodial care, ranging from in-house care to nursing homes. As a general rule, for everyone in your family, the earlier you consider buying long-term care coverage, the cheaper it will be.

FINANCIAL PLANNING

You may not be making a lot of money, but it’s probably more than you’ve had before. You have an apartment to furnish, a wardrobe to build and perhaps student loans to pay off. It’s also important to save money. Most financial experts emphasize that, even if you start small, becoming a saver or investor earlier in life and keeping it up during your peak earning years is very important. Put some money away regularly, even if it is only a small amount. Treat it as a bill and pay yourself along with your other obligations. This can be a rainy day fund or be for a specific purpose, such as a down payment on a home or car.

At this point, it’s also important to know what not to do. We live in a “credit-card society” and are bombarded with advertising that suggests we can have it all right now – the clothes, the car and the fast lane. It sounds old-fashioned, but living within your means is important. Maintaining a good credit rating will help you get the best rate when you apply for a home or car loan. It can help you get a better job or apartment. It can even save you money on your insurance.


Polis Asuransi Keluarga

Should I Buy Life Insurance On My Child’s Life?


The main reason for buying life insurance on anyone’s life is to replace income “lost” or pay for expenses caused by the death of the insured person. If your child dies, there’s no lost income, but there will be funeral, burial and related expenses that could run to thousands of dollars, which might cause a financial hardship to the parents of the deceased child.

Another reason for buying life insurance on a child’s life is to guard against the possibility that, when the child is older, he or she might not be able to buy life insurance because of intervening illness or other circumstance.

Still another reason for buying life insurance on a child’s life is part of a program to teach the child financial responsibility. Typically the insurance is whole life insurance, ownership of which is transferred to the child when he or she turns 21.

Most insurance advisors recommend that families spend their insurance budget to buy life and disability income insurance on the parents first, before considering insurance on children’s lives. Death of a parent, particularly an income-earner, could have financial consequences that are devastating compared to the financial effects from a child’s death.


Polis Asuransi Keluarga

How Do I File A Life Insurance Claim?


To begin the claims process:

Get several copies of the death certificate.

Call your insurance agent. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. Don’t keep life insurance policies in your safe deposit box. In most cases, safe deposit boxes are sealed temporarily upon the death of the owner, which can delay the settlement. If you don’t have an insurance agent, or don’t know who the deceased's agent was, contact the company directly.

Submit a certified copy of the death certificate from the funeral director with the policy claim. Once the claim is submitted, a settlement should be issued to you shortly. Once a life insurance claim is submitted, you must determine how the proceeds will be distributed. These are some of the options available:

Lump sum -- You receive the entire death benefit in a single amount.
Specific income provision -- The company pays you both principal and interest on a predetermined schedule.
Life income option -- You receive a guaranteed income for life. The amount of income depends on the death benefit, your gender and your age at the time of the insured's death.
Interest income option -- The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.


Polis Asuransi Keluarga

What Are The Different Types of Term Life Insurance Policies?


Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.

Common types of level term are:

Yearly (or annually) renewable term
5-year renewable term
10-year term
15-year term
20-year term
25-year term
30-year term
Term to a specified age (usually 65)

Yearly renewable term, once popular, is no longer a top seller. The most popular type is now 20-year term. Most companies will not sell term insurance to an applicant for a term that ends past his or her 80th birthday.

If a policy is “renewable,” that means it continues in force for an additional term or terms, up to a specified age, even if the health of the insured (or other factors) would cause him or her to be rejected if he or she applied for a new life insurance policy.

Generally, the premium for the policy is based on the insured person’s age and health at the policy’s start, and the premium remains the same (level) for the length of the term. So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.

Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.

“Return of Premium”

In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for the return benefit), and others will return both.


Polis Asuransi Keluarga

Why Should I Purchase Permanent Insurance?


A permanent life policy provides lifelong insurance protection. The policy pays a death benefit if you die tomorrow or if you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. In a permanent policy, the cash value is different from its face value amount. The face amount is the money that will be paid at death. Cash value is the amount of money available to you. There are a number of ways that you can use this cash savings. For instance, you can take a loan against it or you can surrender the policy before you die to collect the accumulated savings.

There are unique features to a permanent policy such as:

You can lock in premiums when you purchase the policy. By purchasing a permanent policy, the premium will not increase as you age or if your health status changes.

The policy will accumulate cash savings.

Depending on the policy, you may be able to withdraw some of the money. You also may have these options:

Use the cash value to pay premiums. If unexpected expenses occur, you can stop or reduce your premiums. The cash value in the policy can be used toward the premium payment to continue your current insurance protection – providing there is enough money accumulated.

Borrow from the insurance company using the cash value in your life insurance as collateral. Like all loans, you will ultimately need to repay the insurer with interest. Otherwise, the policy may lapse or your beneficiaries will receive a reduced death benefit. However, unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions.


Polis Asuransi Keluarga

How To Choose The Right Type of Life Insurance


Choosing the right type of life insurance can be confusing, but it’s also an important decision. Here are some guidelines that can help you narrow down your best life insurance options.

You should consider term life insurance if:

You need life insurance for a specific period of time. Term life insurance enables you to match the length of the term policy to the length of the need. For example, if you have young children and want to ensure that there will be funds to pay for their college education, you might buy 20-year term life insurance. Or if you want the insurance to repay a debt that will be paid off in a specified time period, buy a term policy for that period.

You need a large amount of life insurance, but have a limited budget. In general, this type of insurance pays only if you die during the term of the policy, so the rate per thousand of death benefit is lower than for permanent forms of life insurance. If you are still alive at the end of the term, coverage stops unless the policy is renewed or a new one bought. Unlike permanent insurance, you will not typically build equity in the form of cash savings.

If you think your financial needs may change, you may also want to look into “convertible” term policies. These allow you to convert to permanent insurance without a medical examination in exchange for higher premiums.

Keep in mind that premiums are lowest when you are young and increase upon renewal as you age. Some term insurance policies can be renewed when the policy ends, but the premium will generally increase. Some policies require a medical examination at renewal to qualify for the lowest rates.

You should consider permanent life insurance if:

You need life insurance for as long as you live. A permanent policy pays a death benefit whether you die tomorrow or live to be over 100.

You want to accumulate a savings element that will grow on a tax-deferred basis and could be a source of borrowed funds for a variety of purposes. The savings element can be used to pay premiums to keep the life insurance in force if you can’t pay them otherwise, or it can be used for any other purpose you choose. You can borrow these funds even if your credit is shaky. The death benefit is collateral for the loan, and if you die before it’s repaid, the insurance company collects what is due the company before determining what’s goes to your beneficiary.

Keep in mind that premiums for permanent policies are generally higher than for term insurance. However, the premium in a permanent policy remains the same no matter how old you are, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. For more details, see our articles on the specific types of policies.


Polis Asuransi Keluarga

How Do I Choose A Life Insurance Company?


There are hundreds life insurance companies sell life insurance in Indonesia, but many are members of groups of companies and so aren’t really competitors with each other. Having separate companies enables a group to offer its products through separate distribution channels, to more efficiently meet the regulatory requirements of particular states, or to achieve other organizational goals. There are an estimated three hundred company groups.

Moreover, not every group has a company licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. And if the insurance company becomes insolvent, your state’s life insurance guaranty fund will help only policyholders of companies it has licensed. To find out which companies are licensed in any state, contact that state’s state insurance department.

There are several other points to keep in mind when selecting a life insurance company:

Product – most, but not all, companies offer a broad range of policies and features, so choose a company that offers the product and features that meet your needs.

Identity – life insurance company names can be confusing, and different companies can have similar names. Life insurance company names often use words that suggest financial strength (such as Guaranty, Reserve, or Security), financial sophistication (such as Bankers, Financial, or Investors), maturity (such as First, Pioneer, or Old), dependability (such as Assurance, Reliable, Trust), fairness (such as Beneficial, Equitable, or Peoples), breadth of operations (such as Continental, National, or International), government, or well-known and respected people. Be sure you know the full name, home office location, and affiliation (if any) of any company you are considering.

Financial Solidity – life insurance is a long-term arrangement. There is no guarantee for life insurance policyholders similar to that provided for bank accounts by the central bank. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.

Market ethics – some life insurance companies subscribe to the principles and codes of conduct of the Insurance Marketplace Standards Association, a nonprofit organization that promotes ethical conduct in life insurance marketing.

Advice and service – for many people, life insurance is a strange, complex product, so that it helps to deal with a representative with whom you can communicate and who is attentive to your needs. This might be connected to the selection of a life insurance company because some agents represent only one or a very few life insurance companies. See How do I select a life insurance agent?

Claims – you may want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.

Premium and cost – The premium is the amount you pay the company for the life insurance contract with all of its benefits. Even for a given death benefit and type of insurance (e.g., term life), the premium can vary widely among companies, either because some companies’ policies have features that others don’t, or because some charge more than others for the same coverage. So the first step in comparing policies is to make sure you compare similar insurance plans, based on your age, the type of policy and policy features, and the amount of insurance you are purchasing

The premium for the policy isn’t the same as the cost of the protection portion of the policy. One policy might have a higher premium but also offer more benefits (for example, it might pay policy dividends) than another. Or both might promise dividends, but in different amounts at different points in time. In each case, the higher-premium policy might have a lower cost of protection. How can you tell what a policy’s cost is? Companies should tell you a policy’s Net Payment Cost Index and its Surrender Cost Index. Use the Surrender Cost Index if you’re thinking of keeping the insurance only for a specific period of time; use the Net Payment Cost Index if you expect to keep the policy indefinitely. Generally, the lower the cost index, the better.


Polis Asuransi Keluarga

How Should I Choose A Life Insurance Agent?


When you’re considering buying life insurance, it’s important to choose an agent or broker who can help you. Buying life insurance can be complicated or confusing. The key to buying the right amount and the right type of policy at a good rate is a good agent or broker. You should choose one who:

Understands your financial situation, including your attitudes about risk, your income and estate tax “brackets,” and your other financial assets and obligations, as well as your personal situation (that is, your age, marital status, dependents, etc.)

Explains, in terms you can easily understand, issues, options and planned use of life insurance in your financial program

Provides you with a personalized written document that records the facts of your current financial and personal situation and describes the features of the life insurance and how it fits into your situation

Doesn't pressure you into a decision, but works with you until you’re ready and convinced that you are doing what is best for you

Is prepared to review with you periodically—perhaps every three years or so—whether the product continues to be suitable for your needs and circumstances

Licensed by your insurance department

If you don’t have an agent or broker who fits this description, ask your accountant, friends, relatives and business associates for the names of insurance agents or brokers with an excellent reputation. An agent or broker who has one or more professional financial services designations has demonstrated a commitment to specialized education in the field.

The Compensation Issue

Like everyone else, agents and brokers get paid for their services, which are enriched by their education and experience. Most agents and brokers are paid by commission, but some work on a fee basis. Typically, the largest part of the compensation is paid at the time you purchase the annuity, since most of the agent’s or broker’s work occurs at that time or just before it. As with any professional service, you should understand how your agent or broker will be compensated and how that might affect the purchase recommendation.

The bottom line? The best way to protect yourself is to make sure you understand what you’re buying and the nature of the product’s limitations, penalties or fees if you want to drop the policy.


Polis Asuransi Keluarga

How Is Life Insurance Sold?


You can buy life insurance either as an “individual” or as part of a “group” plan.

Individual Policy

When you buy an individual policy, you choose the company, the plan, and the benefits and features that are right for you and your family. You might be able to buy the policy from the same agent or company representative who sells you property and liability insurance for your home, auto or business. And although you won’t qualify for any discounts by buying your life insurance and other insurance from the same representative, working with a single advisor for all your insurance needs can make your financial life simpler.

Individual policies are typically sold through insurance agents or brokers. If you buy a policy through an agent or broker, you will pay a commission, also called a “load,” that is built into the premium rate. The commission compensates the agent or broker for the time spent advising you on how much and what type of life insurance to buy, for facilitating the application process, and for any further service that’s needed in future years to keep the policy up-to-date (such as changing beneficiary designations, arranging policy loans or coordinating your financial plans with your lawyer and accountant).

There are two other ways to buy individual life insurance. In Indonesia, you can buy it from a savings bank. Or you can buy a policy directly from an insurance company or from a fee-only financial advisor—what’s known as a “no load” or “low load” policy. Although there is no sales commission on these policies, the company will still have charges built into the premium to cover its marketing expenses, application processing expenses and subsequent services. Finding an insurance company that will sell you a no-load policy isn’t easy; typing in “no load life insurance” on Internet search engines will in many cases lead you to an agent or broker.

Group Policy

You might have life insurance automatically from your employer; many large companies do this. Your employer also might offer you the chance to buy additional life insurance under a group policy. And you might be eligible to buy life insurance under a group policy from a union or trade association or other group you belong to (such as a college alumni association or an automobile club).

Compared to buying an individual life insurance policy, there are several advantages to buying life insurance under a group policy:

Group purchase can sometimes offer you a lower rate for a given death benefit either because the employer or other group sponsor subsidizes the premium or because the rates are averages weighted by people younger than you. There are virtually no health qualifications for getting the group coverage.

Premium payment is usually by payroll deduction (for employer-based group coverage) or linked with other payments (e.g., credit card bills), lowering the chance of missing a payment.

Most employer group plans are term insurance, but if you leave that employer your state may require that you be allowed to convert the policy to a form of whole life insurance with the same insurance company that provides the group life insurance. You would then pay premiums directly to the company and keep the insurance in force. This can be an advantage if you are older, or have experienced deteriorating health, as it gives you the opportunity to qualify for whole life insurance without having a medical exam.

Credit Life Insurance

Credit cards and lending institutions may offer life insurance to pay off your outstanding loans in the event of your death. This is generally made available in two ways

As part of the loan at no extra charge. In this case the cost of the life insurance is borne by the lender and is included in its interest rate or other finance charges. If you have this type of credit life insurance, you don’t need separate life insurance to pay off that loan if you die.

As an option at an extra charge. In this case, you should usually reject the optional coverage, provided that you have some other life insurance (group or individual) that can be designated to pay off the loan if you die. If you’re under age 50 and you don’t have other insurance that could pay off this loan, consider buying individual life insurance for this purpose as the rates will probably be better. At 50 or over (or younger with health issues), if you have no other life insurance for this purpose, the optional credit life insurance is likely to be cheaper than individual life insurance.


Polis Asuransi Keluarga

Why Should I Buy Life Insurance?


Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

Replace income for dependents

If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

Pay final expenses

Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.

Create an inheritance for your heirs

Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

Pay federal “death” taxes and state “death” taxes

Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.

Make significant charitable contributions

By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.

Create a source of savings

Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).


Polis Asuransi Keluarga