Jakarta, CNBC Indonesia – The presence of insurance products linked to investment (PAYDI) has attracted public attention. The reason is, this type of insurance offers advantages over traditional insurance because it has various benefits that only PAYDI has, namely, some of which can add protection (rider/additional insurance benefits) as the policy runs and also investments.
Apart from life protection, customers can add protection without buying a new policy as long as the policy is active. Examples of health protection benefits include coverage for medical costs when customers are treated in hospital, to a number of benefits paid to customers when they suffer from a critical illness.
Furthermore, PAYDI also provides investment benefits, which can be adjusted to the investor's risk profile. CNBC Indonesia Financial Expert Aulia Akbar said that apart from providing protection for health and life, PAYDI can also help when there is a financial risk.
“For example, there is a financial risk that occurs when income is lost or decreased, we have had PAYDI for a long time, the cash value has been accumulated, so we can take leave to pay premiums, premiums are paid from investment returns. You can also do withdrawal or withdrawal of cash value to meet a customer's emergency needs. “So the protection can continue even in conditions where there is a lack or loss of income,” explained Akbar, Tuesday (20/2/2024).
In other words, Akbar said that ownership of this investment was actually to support protection. Furthermore, Akbar explained that just like mutual funds, PAYDI also consists of several types. There is PAYDI with a portfolio dominated by stock, fixed income and money market instruments.
Adjust investment instruments to your risk profile. PAYDI with stock instruments usually produces quite fluctuating performance, according to principle high risk high return. Even though shares are often referred to as an instrument that is suitable for long-term investment, customers should still understand their respective risk profiles and stick to the main purpose of having insurance, which is for protection rather than pursuing profits.
“So before having PAYDI, make sure you understand the concept of insurance and risk coverage products. Investing in PAYDI is to cover insurance costs and emergency funds/needs,” stressed Akbar.
Please note, like other insurance products, PAYDI users have the obligation to pay premiums every month. The difference is, part of the payment will be allocated some funds for acquisition costs, insurance costs, administration to pay for protection each month, and other costs.
Apart from that, the premium paid by users of this product is also included in the investment in the form of units. Even though it is interesting, potential PAYDI insurance users must study and understand this product in order to get optimal benefits.
The Indonesian Life Insurance Association (AAJI) shares tips for choosing the right PAYDI product, namely:
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Understand the risk profile of PAYDI products, determine whether your risk profile is conservative, moderate or aggressive.
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In accordance with financial capabilities. PAYDI is a long-term financial product, ensure financial stability to pay premiums in the long term.
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Study the cost components carefully. Don't hesitate to ask marketers for details.
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Buy from a trusted company. Do a background check on the company providing the product, make sure it has a track record of claim payments and has been licensed and supervised by the Financial Services Authority.
For those interested in unit link insurance, PT MSIG Life Insurance Indonesia Tbk (MSIG Life) or previously known as Sinarmas MSIG Life, launched Smile Optima Flexilink. This life insurance product linked to investment (PAYDI) is suitable for the established productive age segment. To get this product, prospective customers can get it from an agent, because this product is distributed through agency distribution channels.
Smile Optima Flexilink provides optimal benefits in the form of sum assured of up to 300%, loyalty bonus of up to 30% per year from the first year's basic premium. In addition, the policy guarantee remains valid or No Lapse Guarantee for the first 15 years with applicable terms and conditions.
What's more interesting, Smile Optima Flexilink also offers flexibility in the form of a choice of insurance periods of 65, 80 and 99 years, investment in Rupiah and US Dollars, and various additional insurance. There are additional protection benefits against the risk of death, protection benefits against the risk of health care costs, and exemption from Basic Premiums and Periodic Top-up Premiums for the risk of critical illness, record the total or death within the Insurance Period. This product can also be a leading investment solution with optimal insurance protection.
So, have you found PAYDI that suits your needs?
[Gambas:Video CNBC]
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