Get to Know Dual Purpose Insurance and It's Types

Get to Know Dual Purpose Insurance and It's Types

Dual purpose insurance is a type of insurance that is quite popular and has several important benefits in providing protection to policyholders. As the name suggests, dual -purpose insurance can provide two useful benefits for prospective policyholders who want to be insured from the financial impact of premature death and so on.

Before becoming an insurance policy holder, of course you need to know more about what dual purpose insurance is and what benefits you can get when using this type of insurance. Come on, check out the full discussion.

An Overview Of What Dual Purpose Insurance Is

Dual -purpose insurance or endowment insurance is a protection that provides a certain amount of money when the insured dies in a certain period, it can also simultaneously provide all the money if the insured is still alive at the end of the insurance period in accordance with this insurance period. 

The customer of the insurer will pay the insurance policy charge periodically in accordance with the insurance service agreement. The insurance policy burden is the amount of funds that will be paid to the insurance company each month (premium).

To know more about what is meant by dual -purpose insurance, you need to know about the various types of dual -purpose insurance that offer a variety of functions and protections.

Types of Dual Purpose Insurance

Dual -purpose insurance offers life insurance coverage as well as fund accumulation. This type of dual -purpose insurance is generally reserved for a specific purpose and period of time according to the needs of dual -purpose policyholders.

Some types of dual -purpose insurance products include dual -purpose pension insurance, dual -purpose education insurance, and dual -purpose civil service insurance.

1. Pension Insurance

Those who are still in the productive period will have a higher level of productivity with good financial performance. At productive age, it is a good time to start preparing for old age so that later when entering retirement.

Dual -purpose pension insurance policies generally have a long -term insurance duration that can be disbursed at retirement. 

As explained above, in the event of bad things happening to the holder of a dual -purpose insurance policy, such as dying before retirement, the money covered from dual -purpose pension insurance can be used as a pension fund for family members who are entitled to receive it.

2. Education Insurance

One of the duties of parents is to plan and provide the best education for children to prepare for the child's future. From an early age, parents can begin to prepare for everything related to their children's education later, including financial readiness to fund the cost of education when they enter school age.

This type of education fund insurance can help parents raise money to finance the child's education fund needs according to the plan. The disbursement of education funds can be done gradually to adjust to each level of education of the child.

Insurance Benefits

In the explanation above, you have learned about the various types of dual -purpose insurance and also an explanation of the list of products and features of dual -purpose policies of some of the leading insurance companies in Indonesia.

Dual -purpose insurance or endowment insurance as a life insurance product with additional savings benefits. This insurance is very suitable for individuals who have long -term financial plans, such as raising education funds, pension funds, and marriage funds. 

Not only that, rider insurance is another dual -purpose insurance benefit that is certainly beneficial and you need to know. What are the benefits ?

1. Insurance Funds Will Accumulate

Holders of dual -purpose insurance policies will pay fees/premiums periodically in accordance with the agreed policy value. The cash value of the fee/premium payment formed in the dual -purpose insurance will be accumulated and can be disbursed at a certain time that has been promised in the policy.

2. Having Death Compensation

The dual -purpose police contains a humanist element that will provide benefits in the form of death compensation to the heirs who have been appointed and agreed, if the customer or holder of the police dies.

3. Deposited Premiums Are Not Burned

Fees/premiums that have been deposited will be given back when the customer of the policyholder is still alive until the end of the coverage period so that the fees/premiums that have been deposited are not burned.

4. There is an Insurance Bonus

Dual -purpose insurance also offers a number of bonuses that can be one of the benefits for policyholders. The bonus is a No Claim Bonus or which will be given if the policyholder does not file an insurance claim at a certain time. Then there is also the Insurance Expiration Bonus that can be disbursed if the policyholder does not file a claim until the end of the dual -purpose insurance period.

Terms of Applying for Insurance

Of course, after knowing the various benefits and options of dual -purpose insurance policy, you are more curious about the requirements to be able to immediately apply for the use of the best dual -purpose insurance product.

Each dual-purpose insurance product from various insurance companies of course has different requirements for its potential customers. See the explanation below to find out about the general requirements required to apply to become a dual purpose insurance policy holder.
  • The age of the customer of the police holder starts from the age of 18 years
  • The age of the insured varies from 1-65 years depending on the insurance company
  • There are fees/premiums that can be paid monthly or annually
  • The insurance period is generally 20 years
  • For more information on the requirements for applying for a dual -purpose insurance policy, you can directly contact the insurance company of your choice.

Differences between Dual Purpose Insurance and Link Unit

Dual -purpose insurance products are somewhat similar to term insurance, the difference being additional features as savings for policyholders, such as child education savings. 

Additional features such as savings can be defined as the offer of cash value that can be liquidated when the contract expires or can also be liquidated over a period of several years.

In contrast to dual -purpose insurance, unit link life insurance products have two functions as full protection and also as an investment. If you allocate most of the premiums for insurance then the amount of money insured obtained is quite large in value. 

However, if you allocate most of the premiums for investment then there is a possibility that the value of the investment return will be greater.

Such is the explanation of the meaning of dual -purpose insurance, types and benefits of dual purpose insurance. Preparing and planning for future funding needs is very important. It is also important for you to know the best insurance that can realize the plan, as well as provide protection from unforeseen risks.
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