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Don't Choose Unit Link Insurance Carelessly

In House Magazine
22 Sep 2019
 Don't Choose Unit Link Insurance Carelessly

Unit Link insurance has become popular in Indonesia, with claimed benefits that can be highly advantageous for consumers. Customers can receive a return on the premiums paid and even gain from investments made through Unit Link.

However, choosing Unit Link insurance requires careful consideration. There are several factors to consider before purchasing a Unit Link insurance product.

Here are 6 important factors to consider when choosing Unit Link insurance:

  1. Credible Insurance Company

This is crucial. Ensure that the insurance company is registered and supervised by the Financial Services Authority (OJK). There are risks involved if the insurance company is not registered and regulated by the OJK.

  1. Prioritize Your Needs

For investment purposes, such as education funds or property, choose Regular Premium Unit Link (RPUL) Back End, as it provides 100% allocation of regular premiums for investments from the start.

  1. Appropriate Benefits

Calculate the Life Insurance Sum Assured by considering the economic value, dependents, and debts you have. There are various methods to calculate the Sum Assured, but the simplest is to use 10 times your annual income. Also, consider additional insurance coverage (riders) for health protection or critical illness. Remember to select the Sum Assured and riders based on your specific needs!

  1. Affordable Unit Link Premiums

Unit Link premiums should be affordable based on your financial capacity. Ideally, the premium should be around 10% to 30% of your income. Nowadays, many Unit Link products offer affordable premiums. Some investment-linked insurance policies even have premiums as low as the price of a cup of coffee, starting from Rp 17,000 per day.

  1. Check the Performance of Unit Link Investment Instruments

Each investment instrument option carries different levels of risk: low, medium, or high. Regularly check the performance and take advantage of the flexibility to reallocate investments according to your risk profile and investment style.

  1. Understand the Unit Link Policy

Study all the terms and conditions stated in the policy, as well as understand all the benefits and risks of the chosen Unit Link insurance. Be an active and critical customer.

By considering these factors, you can make a well-informed decision when choosing Unit Link insurance. Remember to prioritize credible insurance companies, assess your needs, calculate appropriate benefits, ensure affordability, monitor investment performance, and thoroughly understand the policy terms and conditions.

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