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Dloplop - what is life insurance? we first understand the meaning of the word Insurance which can be interpreted as Protection or Protection and Life which can also be referred to as Life.

Life insurance

what is life insurance? we first understand the meaning of the word Insurance which can be interpreted as Protection or Protection and Life which can also be referred to as Life.


Life Insurance can be defined as a contract or agreement between the insurance policyholder and the insurance company, in which the customer will pay a certain amount of money every month on the company, and the insurer or company undertakes to pay a certain amount of money in exchange for the premium, after the death of the insured person or after a certain period of time as agreed by both parties.

Commonly used terms in Life Insurance

Life Assured
This is the person covered by the insurance policy

This is the person who pays the policy premium.
For example, if you have purchased a policy for yourself, then you are both the Insured and the Proposer. Similarly, if you buy an insurance policy for a family member, then you are the proposer and the family member is the Insured.

Nominee atau Beneficiary
This is the person you designate at the time of purchasing the policy to receive your insurance policy benefits.

The insurance company that sells life insurance policies is called the Insurer.

Life Cover
This is the amount that the Insurer will pay to your heirs in the event of an event or disaster that befalls you. 

Due date
For the Protection + Savings Policy, the Insurer pays a certain amount of money at the end of the policy period. This amount is known as the Maturity Amount.

A premium is the amount you pay to the insurance company to receive benefits from the insurance policy. These payments can be made regularly throughout the duration of the policy, for several years or only once, according to the options available under your chosen policy.

Premium Payment Term
The number of years in which you pay premiums is known as the Premium Payment Term.

Policy Term
The number of years in which Life Insurance continues.

The Importance of Life Insurance

Is it important to have life insurance? Yes, nowadays having life insurance is a must to anticipate things that are not wanted in the future. 

Having insurance means that you have provided financial protection to yourself and your family. The benefits of this insurance will be felt in the future for a long time. of course everything will be proportional to what you spend every month to pay premiums

Not only protecting life, life insurance companies also offer a variety of benefits because they can provide financial protection for the heirs or families of the insurance owner. In general, life insurance benefits include total permanent disability compensation, partial permanent disability, death cash compensation, savings funds to investment value.

But keep in mind that these benefits can only be obtained if the life insurance owner experiences the risks covered in the insurance policy.

How to claim life insurance

Intimacy of insurance claims

Claim intimacy is the first step to follow in the case of a death claim. The nominee should notify the insurance company of the insurance claim as early as possible. And obliged to fill out the death application form and provide the necessary information including: 

  • Policy number
  • Policyholder's name
  • date of death
  • Place of death
  • Time of death as well as name of plaintiff etc. 

The nominee or beneficiary can look for the form at the nearest branch or download it from the insurance provider's official website.

Document submit

Candidates must submit a death application form along with other required documents such as the original policy document, a copy of the cancelled bank passbook/check, details of the plaintiff's address, proof of photo identity, and the policyholder's death certificate. 

Life insurance claim settlement

After the nominee submits the documents, the insurance company registers the request and is expected to complete it within 30 days. However, in circumstances where the insurance provider needs to conduct further investigation, they may be allowed to settle the claim within six months from the date of receipt of the death application form.

Product Types of Life Insurance 

Term Life Insurance

Increasing term insurance is an insurance product that provides protection for insurance policies from possible inflation due to the increasing burden of protection provided by insurance companies to their customers.

No wonder that every period the premium cost of this type of insurance will increase periodically as long as the insurance policy is still active. For example, your insurance policy goes up every year by 3 percent.

The good news is that the increase in premium costs is apparently in line with the increase in sum insured that customers will get.

Lifetime Life Insurance

Whole life insurance can provide coverage for the duration of your life. Customers in the policy build up the cash value over time by using part of your premium payment and adding interest. The policy will have a built-in guarantee that the premium will not increase, the death benefit will remain the same, and the purchase value will get a fixed rate of return.

Universal Life Insurance

Universal life insurance may be difficult to understand because there are several types and with completely different features. Universal life (UL) can be cheaper than whole life insurance because it generally does not offer the same guarantee.

With some universal forms of life, you can vary the amount of premium payments and change the amount of death benefit, within certain limits. UL policies often have a cash value component.

Variable Life Insurance

Variable life insurance offers permanent protection with cash value. The policyholder chooses a sub-account to invest in and the decision determines how much the cash value account grows. You can also lose money based on the performance of your sub-account.

Insurance for Death and Burial 

You may see this kind of policy called burial, funeral, or final cost insurance. Whatever the name, it is usually a whole life insurance policy that is intended only to pay for funeral expenses and other final expenses. Funeral insurance is often offered as a policy that you cannot refuse and does not require a medical examination.

Survivorship Life Insurance

This joint life insurance policy covers two people under one policy, such as husband and wife. Payments to beneficiaries are made when both have passed away. You may see them being called second life insurance until death, but for understandable reasons, the industry is moving away from this name.

Survivorship life insurance can be cheaper than buying two separate life insurance policies, especially if one of the people has health problems.

Mortgage Life Insurance

Mortgage life insurance is designed only to cover the mortgage balance and nothing else. This type of policy differs from the above types of life insurance in two main respects. First, the death benefit is paid to the mortgage lender, not the beneficiary you choose. Second, the payment is the mortgage balance, or the partial balance if that's what you insure.

Credit Life Insurance

Like mortgage life insurance, this insurance covers certain debts. When you take out a loan, you may be offered credit life insurance. Payments can usually be incorporated into your loan repayment. Life insurance payments are the balance of the debt and are paid to the lender, not your family.

Additional Life Insurance

The life insurance that you may have through work is additional life insurance , also known as group life insurance. It sets rates by group, not individual.

Requirements to buy Life Insurance

Of course, before registering, choose the service provider first. You can use cheap insurance that offers an economical premium with full-year protection.

Next, follow how to apply for life insurance below. In general, the steps include administrative procedures and underwriting selection.

Choose Insurance Products

Choose an insurance product that suits your needs and financial capabilities.

This is not only a matter of choice of benefits that you can get, but also the ability to pay premiums. Don't let it be in the middle of the road that you can't afford to pay the premium.

If you find it difficult because of the limited premium options, you can use Jiwa Dieh, an example of a life insurance product that provides more flexible premium options starting from $2

Prepare Requirements

Life insurance registration generally requires an identification card, driver's license, marriage book (for those who are married), and a birth certificate of the child who is the heir.

Some of them sometimes require a Tax Number, medical check-up results and other supporting documents.

This depends on the policy of the company. You can ask this in full directly to the service provider.


Register online or offline. You can go directly to the insurance agent for offline registration. Meanwhile, how to register for life insurance online through the company's official website.

If available, you should choose the online registration process only, because you don't need to go to the office. You also don't need to go back and forth if it turns out that there are missing documents.

Fill out the form (Life Insurance Application Letter)

Fill in the form (Life Insurance Application Letter) correctly and in accordance with existing conditions. The form will contain detailed information related to personal data and the customer's health condition.

Filling out the form honestly will minimize the occurrence of rejection due to pre-existing conditions.

Paying Premium First

The next way to make life insurance is to make the first premium payment. This becomes a condition for activating the account. The cost of life insurance premiums starts from cheap

When choosing an insurance product, you should have determined the amount of premium costs that you have to pay.

Wait for the Underwriting Selection Results

After the review process is complete, the underwriting party will give a decision, whether the application is approved, rejected, or approved with an additional premium.

There are several factors on which the underwriting decision is based. First, the health condition and the second the amount of premium you apply for.

Life insurance payments

Basically, the period of premium payment in each insurance product is different. This depends on the policy of each insurance company.

The time period provided is quite diverse and can be adjusted to the needs and products you want to buy.

The term of payment of life insurance premiums starts from 5 years, 10 years, 15 years, or unlimited as long as the customer is still a policyholder or has not covered the Prudential insurance owned.

In addition to the various life insurance premium payment terms, the premium price also varies and varies in each existing insurance product.

Please note, the premium price is influenced by many factors. One of them, in life insurance, premiums are influenced by the amount of the sum insured. 

What if you are late paying life insurance premiums?

Every month, there is a date set as the maximum date for payment of insurance costs. If you are late in paying insurance premiums, there will be a grace period.

This grace period is given as an additional period for making premium payments. If you want the insurance to remain active, you must immediately pay the premium within this period.

However, if the insurance premium is not paid until it passes this grace period, then your insurance will become inactive or called lapse. 

If the policy is lapse, it means that insurance can no longer be used, both to cover life and health costs.

If you are confused, you can use the content table above to make it easier to find the right one. Hopefully, this info can add to your insight into life insurance

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