Life insurance products can be grouped according to period features, namely life insurance product life insurance products and traditional or more modern we know with these links. By knowing the difference between these two products may be able to help you get to know more about life insurance.
The characteristics of traditional life insurance products include:
- Greatpremiumsand moneypertanggungannyafixed (constant) sincethe commencement of the insuranceup toendlessperiod ofinsurance.
- Premium paymentschedulefixed in advance, e.g.every year,six months, three monthsor monthly.
- Sincethe contractstartedthe cash valueof the policyis alreadyknown.
- The composition of the costs,and the interest ratemortalitatableunspecifiedand unknownbyprospectivepolicyholders.
- Greatinterest rateenjoyed bythe constantthroughout the contractpolicyholdersof insurance.
As for the modern life insurance products have the following characteristics:
- The composition of the premiumspecifiedseparatelybetween thepureinsurance premium, cost andlevel of interest.Allof these detailsknown toprospectivepolicyholders.
- Premium payment periodandthe magnitude of the sum assuredcan befickle,anddoes not havea fixedtimetable, becausemodernlife insurance productallowsthe addition ofanypremiums.
- This product requiresthe administration ofwhich is muchmore complicated thantraditionallife insuranceproducts, becausethese productshave a parta premium fora considerableinvestmentandshould be managedin a professional manner.
- Prospectivepolicyholdersmaydecide wherefunds (premium)invested,such as stocks, bonds, money marketdeposits,and so on.
- The cash valueofthe policyis determined bythe performance of the Investment Committeeof thelife insurance companiesthatmanage,so thatpolicyholdersdo not know exactlyhow muchcash valuethathe willacceptif cancelled(time-lapse).
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