When it comes to being financially secured, people often ask themselves various questions. Do I need life insurance? Who is life insurance best suited for? Truth be told, life insurance is something that comes in handy to anyone during challenging times.
Life Insurance may not seem like a cool idea but it is the one that you and your family can benefit from during unanticipated events. The strategy of having good life insurance will provide financial security to your family when you will no longer be able to take care of them.
However, the abundance of plans for life insurance in Indonesia can make it overwhelming for you to determine which type of life insurance you should choose. So, here, we are sharing this guide to help you learn which type of insurance is best based on different life stages.
Term Life Insurance: Best for Single Adults
You might be young and in the golden years of health now. But life does not remain the same always. When you are living alone and don’t have any support, buying a term life insurance plan seems like the best plan.
Many might say that single adults don’t need any insurance because there is no one to whom their death benefit goes. But you miss some of the important things with this attitude.
Even though a prospective beneficiary doesn’t rely on you for financial support now, they can use that money to cover the cost of your funeral. This is not all.
Your parents might face issues when the amount of student loan that they have taken for you is left unpaid in the event of your death. Buying term life insurance will help you pay those loans off so that your parents don’t get stuck with your debt.
Whole Life Insurance: Best for Young Families
When you want to secure your family while investing in the future, a whole life insurance plan is an ideal option. Though it is typically more expensive than term life insurance, you will benefit from the cash value that accumulates over time in addition to the death benefit. Besides, whole life insurance stays with you for your whole life, given that you make on-time payments and remain in compliance.
Guaranteed Issue Life Insurance: Best for the Elderly
If your kids have left the home to live their own life, you might be tempted to end the expensive life insurance policy. However, it is still worth buying a small policy to help your family pay for the funeral expenses. If your age is the obstacle in finding a good policy, you can look for a ‘guaranteed issue’ life insurance policy. It does not require a medical exam and you won’t be denied the insurance; however, you might be paying higher premiums.
Expat Life Insurance: Best for Expats in Indonesia
Being an ex-pat is not a life stage, but ex-pats have a lot more to lose than a native. So, we decided to mention this insurance here. Even though, as an ex-pat, you might have travel insurance or life insurance back in your home country, you need to make sure that they will still provide the same benefit and support. Unfortunately, many insurers don’t cover the loss that people suffer as ex-pats, especially if they deem the country to be dangerous. Thus, you should search for the right ex-pat life insurance when residing in Indonesia.
If you need further information on life insurance in Indonesia, consider getting in touch with local insurance experts.