Life Insurance Fee You Must Read
First, the need to realise that behind the sweeteners mentioned above, there are fees charged to clients, namely administrative costs, the cost of investment and Management Costs of the acquisition, the cost of an extra burden was beyond the insurance cost (cost of mortalita magnitude depending on gender, age and the magnitude of the sum assured, policyholders health conditions also affect the magnitude of this cost), here is an explanation of costs on the unit links :
1. Administrative expenses
Based on the data that we receive the range administrsi fee is Rp 20000.0 to Rp-30000.0-per month or up to Rp 240,000.0 Rp 360,000.0-per year. These costs will continue to be charged during the validity period of the insurance.
2. Allocation of the cost of the Premium
Insurance companies that charge you this in advance before and each fund gets into the portion of the investment. This fee generally amounting to 5% of the funds invested and there is also a method using bid-offer price i.e. the incoming funds will be divided by the selling price (offer price) as well as the funds out or withdrawn by the customer will be multiplied by the purchase price (bid price). The difference of the bid-offer price usually by 5% (generally calculated from the offer price). For customers who want to withdraw its investments from link units that use the methods ofthe bid-offer price absolute must calculate the rate of growth that is taking place since those funds coming in, minus the difference between bid-offer price.
3. The premium Allocation Charges (Special Unit Regular Links)
In addition to the above costs, the cost of other premium allocation is still charged in the first 5 years with a range of up to 100% of the premiums paid after cut insurance costs at the beginning of the first year, the range of this cost will be down periodically to 0% at the beginning of the year to 6 times the policy runs.
However there is a small portion of the product unit links in Indonesia that allocate the investment in the first year by 20% to 100% of base premium in the first year. At first glance looks interesting, but after research it turned out that the costs are charged to the customer not least, as an illustration of a prospective customer would pay a basic premium that much greater if the prospective customer buying the product link units are beginning to allocate investments since the first year compared to link units that do not allocate their investment in the first year.
4. Investment Management Fees
Insurance companies also charge the management of Investments by investment managers which varies between 0.5% to 3% per year and are already accounted for in the price of the unit. The level of this fee depends on the type of investment chosenby the customer (fixed income mutual fund, stock or a mixture), the size of the funds managed, as well as the desired profit by life insurance companies.
5. Unit cost single premium Links
On payment of a single premium or single premium (i.e. premium payment just one time and there is no obligation of payment in the following year but if you want to add a portion of investment are allowed), this type of policy also imposes costs such as the cost of acquisition of fixed magnitude usually amounting to 5% of the total single premium and/or the funds in the Top Up (added), administrative fee to cover the cost of the initial range of $ 240,000 policy up to Rp 300,000.0-usually worn in the first year. The guaranteed sum assured is 150% of the initial investment, if no withdrawals later on by the customer. However, if withdrawal occurs later, the sum assured will be reduced.
In line with the length of time the investment, if the growth of investment funds have exceeded the sum assured so if there is a risk of death, the benefits obtained by the beneficiary of the investment grade. Conversely, if the value of the investment turned out to be smaller than the sum assured then heirs of the obtained benefit was of sum assured, with a note if the development of the investment value is not smaller than the costs mentioned above.
2 comments
nice info
motivasi sekali gan
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