The 3 Mistake in Buying Life Insurance

Life insurance has probably become one of the types of insurance that popular at this time. With a relatively affordable premium, this insurance is able to ensure the funeral costs, medical bills, payments and debt obligations, as well as ensure the living standards of families who left policy if the holder dies.

But you know, the mistake many people make when buying life insurance. Women's Media the following details some confusion that often occurs:

1. Buy life insurance but do not have insurance

Life insurance protection as useful to anticipate the effects that occur when someone who bears the financial life of families can no longer perform the function of the withdrawal. In other words, products, life insurance is not required by the person who does not have an obligation to living the family, or do not have the financial responsibility for others. Even better, select the type of insurance based on the needs of others, such as health insurance, disability insurance, and others.

2. Buy life insurance for children

Provide protection by buying life insurance for children that young are not wise action. For, the child does not yet have its own revenue, so do not yet have economic value for families. Should be, parents who buy the insurance policy as protection against a child, a day later when they died. Insurance for the first party that has the highest economic value which is the backbone of the family.

3. Buy life insurance because of low premium

Not a few people choose the product because the calculation of life insurance premiums low. In fact, the selection of insurance products should be determined based on the insurance money provided by insurance companies when something happens to the holder of the policy.

Large insurance money that should belong to every person is different between one another, depending on the number of dependent and obligations that must be repaid. In general, the value must be able to meet the insurance needs of families who live abandoned for some time, including to finance the education of children until they are independent, and to pay off debt (if any).

To determine the big insurance money, there are several approaches that can be done. First, e.g monthly revenue of Rp 3 million and the deposit interest rate 6% per year (0.5% monthly). Thus, the value of insurance is recommended: Rp 3 million x 100 / 0.5 = Rp 600 million. Second, can also adjust them with a large family monthly expenditure, and is calculated with the same formula. In addition, there are also some sources that suggest to multiply the amount of expenditure per year with the number 10. Thus, e.g monthly expenditure Rp 3 million, the big insurance money that is required: Rp 3 million x 12 x 10 = Rp 360 million.

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