When you buy life insurance, you will get benefits in the form of insurance coverage. This sum assured is often also referred to as UP. UP is protection from the insurance company as the guarantor given to the customer's heirs. This UP is given if the insured suffers permanent total disability or dies. The benefits will be very useful to provide financial security for the bereaved family or if the insured is unable to work again due to the impact of permanent disability. Every insurance customer will not always get the same amount of UP. Because, the UP given is tailored to the needs of each. When buying life insurance, it's a good idea to have calculated how much UP you need. In this method, the absolute sum assured is calculated based on monthly income times the length of time the funds are available to sustain life. This calculation is carried out without regard to the interest factor or the growth of funds if the money is deposited in a deposit product in the banking system. For example, Eko (35 years old) has a net income of IDR 5 million per month, his wife is a housewife. They have one child who is 9 years old. This method calculates UP by taking into account the amount of interest or return if the money received is stored in banking savings products. Why divide by 6 percent? Because if the UP is accepted, then the funds are placed in fixed income investment instruments. For example, such as ORI (Indonesian Retail Bonds), fixed income mutual fund investments, so not on deposits. Historically, ORI has had a one-year performance in the range of 6-8 percent. The amount of the sum insured has a minimum range equal to the amount of money for certain current needs (present value) multiplied by 150 percent.
For example, the cost of studying at a university now is Rp.
While the maximum amount is the amount of money in the future (future value) multiplied by 80 percent. So, this third method is absolutely combined with the investment made to achieve the future financial needs (future value) of these financial needs. In the Financial Needs Based Value method, life insurance coverage is used to protect education costs later if the head of the family dies. For example, the cost of studying at a university now is Rp. 200 million, so in nine years the cost of education will be around Rp. 550 million with an estimated increase of 12 percent annually. So, the sum insured to protect education costs is Rp. 550 million. Or, if you want it cheaper, you can choose the amount of coverage of IDR 275 million. However, it must be accompanied by a combination of investments in equity mutual funds of IDR 250 thousand per month, with a minimum return target of 18 percent per year. To make it easier, you can also try to calculate UP with a life insurance coverage calculator based on the following income. Insurance sum assured is the total amount of money to be issued or paid by the insurer (insurance company). The money is given when the insured (policy holder) submits a claim in accordance with the risks guaranteed in the agreement in the policy or insurance program.
Some are in the tens of millions or even billions of rupiah.
Usually, this risk is due to the occurrence of events that are guaranteed in insurance, or meet the requirements for the insured to file a claim. Meanwhile, the definition of insurance itself is a financial protection product that works by transferring risk from the customer (the insured) to the insurance company (the insurer). UP is one of many terms that one should understand before buying an insurance product. What is the ideal value for insurance coverage? Different companies, different amount of sum assured that will be given. Some are in the tens of millions or even billions of rupiah. For example, our life insurance coverage is IDR 200 million. That money may seem quite a lot right now because that kind of money isn't in our savings right now.
But in reality Rp200 million is small for a life insurance protection. Because every year the cost of living increases due to inflation. Inflation in Indonesia is generally around 6-7 percent annually. If the current cost of living for our family per month is Rp. 10 million. This means that the UP only meets the needs of the families left behind to survive for less than two years. Thus, UP whose value is Rp. 200 million, in just two years its real value or purchasing power fell to Rp. 178 million due to rising prices of goods. As the years go by, the purchasing power of the UP decreases. The guarantee of financial protection obtained will not be sufficient. In addition, it should also be noted that the amount of UP chosen will determine the insurance premium that must be paid every month. The bigger the sum insured, the higher the premium price. When deciding on UP, there are several things that need to be considered so that the UP will be truly useful and can meet needs. Economic value is the first thing to consider. This economic value describes your economic ability. To find out what the economic capacity of you and your family is like, you can calculate the amount of net income each month and the total family expenses.
39;s life in the future.
Net income is the amount of income that has been deducted by deductions for benefits, taxes, and so on. Usually, the heirs are the parties who will get UP when the insured or the owner of the life insurance suffers a loss, either total disability or death. But, also consider what the burden of your heirs will be. Do the heirs you appoint also bear the cost of living for other family members, such as wives, children, younger siblings, parents, and so on. As mentioned earlier, if you choose the wrong UP, then the benefits cannot be felt to the fullest. The money earned can be used to pay debts so that the insured does not inherit the debt to the heirs (spouse or children). The money earned also needs to be prepared for the income or expenses of the spouse's life in the future. The sum assured for life insurance must also be able to finance final expenses, for example paying for hospitals, burial or cremation costs, paying for funeral homes, and so on.
Finally, in determining the amount of life insurance coverage, it is necessary to consider the cost of the child's education (at least until the child finishes undergraduate studies). So always make sure to choose the right life insurance products with insurance coverage based on the four security factors above so that the finances of the family and heirs are guaranteed. Life insurance premiums are not always the same for every customer. Because, this premium rate is influenced by many things, one of which is the amount of insurance coverage that will be obtained. The higher the sum insured, the premium will also be more expensive, and vice versa. So, how to calculate life insurance premiums based on the sum insured? The premium will be determined by the insurance company. Then, if the premium will be multiplied by the number of dependents. For example, the amount of premium determined by the insurance company is Rp. 150 thousand per month, and the number of the insured is up to 3 people. That is, the premium that needs to be paid every month is Rp. 150 thousand x 3 people, the same as Rp. 450 thousand per month. Tips from Lifepal! Life insurance can be used to provide coverage if the insured dies or is completely disabled due to an accident. So, the welfare of the heirs is guaranteed even though there is no fixed income from the insured. In addition to life insurance, if you are already a parent, it is also necessary to prepare children's education funds from now on. Basically, the cost of children's education is not small. It is better to prepare education funds as well as possible so that children can get a decent education until graduation.
Are you planning to buy an automatic car? Or planning to ride it in the near future? Maybe you already know that the way to drive an automatic car is different from the usual car, which shifts the gears manually. Automatic cars have automatic transmissions, where the automatic car gearshift system is designed to be able to move without having to step on the clutch pedal. Automatic transmission has two types of systems, both of which are also known to be simpler and easier, namely semi-automatic and automatic systems. This is How to Check Jakarta Number Plates, Easy! Even though it's automatic, it doesn't mean that driving an automatic type car is just playing the gas and brakes. You also have to be required to have a good feeling in measuring engine power because automatic cars also have transmissions that you can adjust depending on your needs. You will meet the automatic transmission lever with the code P, R, N, D, D3, 2 and L. If you are a new player in driving an automatic car, you are definitely confused by the letters and numbers that are rarely found. 9 Ways to Get Rid of Stickers on Motorcycles, Smooth Back Again! How to Check Vehicle Number Plate Owners Online, Easy! Complete Car Window Film Price List, Must Know! Well, to help you recognize a dead car gear, Qoala will explain in full about automatic car gear, from how to drive it, the meaning and function of each of the codes above and other information you need to drive an automatic car through this review.