Both provide
investment and protection benefits, which one should we choose: Unit-linked
insurance or dual-purpose insurance? Before deciding what insurance is right
for you, consider the following simple explanation.

As the namesuggests, Endowment insurance does offer two uses. First, dual-purposeinsurance provides life protection. Second, this insurance is like savingmoney. That is, one has to pay a premium every month during the agreed period.

For example,Budi takes dual-purpose insurance with a cash value of IDR 1 billion for 30years. This means that Budi has to pay a premium for 30 years. If there is arisk of death for Budi, the heirs will receive a benefit of Rp. 1 billion.

What ifthere is no risk to Budi? In the 31st year, Budi will still receive lifebenefits or non-disaster benefits with the same value, which is IDR 1 billion.This means that dual-purpose insurance provides a guarantee or guarantee topremium holders to obtain cash benefits that have been agreed upon at thebeginning.

So what'sthe difference with unit link insurance? Unit link insurance is insurance withan investment in it. The premiums we pay will be invested into investmentinstruments according to what we want. The goal is to get maximum returns.

For example,Budi chooses unit link insurance with the same period, which is 30 years. Itcould be that the cash benefit obtained is greater than IDR 1 billion or it maybe smaller, depending on the chosen investment portfolio.

Here, premiumholders have the accessibility to choose their investment instrument, whetherin mutual funds, money market, stock market, bonds, or even a mixture of theseinstruments. That is, it is the premium holder who bears the risk of theunit-linked investment.

ThingsYou Need to Know About Dual Purpose Insurance

Aspreviously explained, dual-purpose insurance has two main functions, namelylife protection and also as savings. Because it offers two long-term benefits,dual-purpose insurance is suitable when the policyholder is of productive age.

Withbenefits that can be felt in the range of 10 years or 15 years into the future,customers can choose dual use to plan for the future, such as for educationfunds, old age funds when retiring, or protection funds for families if theinsured dies.

In terms ofits purpose as an education fund, even though it is intended for children, itis better that the policy holder remains on behalf of the parents. Because ifsomething unexpected happens to the parents, the child can still continue hiseducation with the cash value obtained from the Dwiguna Insurance.

How UnitLink Insurance Works

Talkingabout unit link insurance, many people misunderstand about unit link. Manyconsider that unit link insurance is an investment. As a result, they alwaysthink they will get high returns from the deposited funds. In fact, investingin unit links has a specific purpose. What is it and how do unit links work?

So far, weoften recognize two types of life insurance, namely pure or traditionalinsurance, and unit link or dual-purpose insurance. These two insurances havedifferent characteristics and purposes.

Pure lifeinsurance is generally in the form of health protection for bothhospitalization and protection for certain diseases. Usually, this insurancehas a term, ranging from 5 to 20 years.

Unit linkinsurance is suitable for those who want to be protected when there is a riskof death during their productive age. Thus, the Sum Assured (UP) provided willbenefit the family as a substitute for income lost due to death.

Meanwhile,dual-purpose or unit-linked insurance is life insurance plus investment. Thisinsurance in addition to providing health protection along with UP, alsoprovides cash value benefits.

The cashvalue given is the result of the development of funds from the investmentmanager appointed by the insurance company. Like other investments, theinvestment value in unit links is quite volatile so it has risks.

2Important Things About Unit Link Insurance

To find outwhether the investment provided by Unit Link Insurance meets our expectations,first understand the following two things:

Understandthe Type of Funds in Unit Link

Often peopleexpect to get high returns from invested premiums. However, the resultsobtained are highly dependent on two things. First, the type of fund or mutualfund that is deposited from a premium. Second, the condition of the capitalmarket in the country.

The thing toremember, unit link insurance is not the same as investing in the stockexchange or the like. This is because this type of insurance is more for futureplanning efforts and protecting families from risk.

Theinsurance company will allocate the customer's premium to the fund portfolio inaccordance with the customer's risk profile as an investor. If the customer isan investor with an aggressive risk profile, then the appropriate mutual fundis the stock market or equity fund.

However, ifthe customer is an investor with a low risk profile, he or she can ask theinsurance company to allocate premiums to a fixed income fund or a balancedmutual fund. However, the returns obtained are not as high as those of equityfunds.

Investmentas a hedge of rising healthcare costs

What shouldalso be realized is that investment in unit links is also associated withhealth costs, which continue to increase from time to time. According to theWillis Towers Watson survey, the average increase in health costs in Indonesiareaches 10-11 percent per year. This increase exceeds the national averageinflation which is perched at the 3% figure.

Of course,customers can calculate how much health costs will be in the next 10 years ifthe increase is 10% per year. If this year the operating cost is Rp. 20million, in the next 10 years, the cost may increase by Rp. 35 million.

That is whyinsurance premiums on unit links are static or do not increase, unless thecustomer changes the type of plan. On the other hand, for non-unit-linkedinsurance, the premium value will be updated annually following marketconditions and the policyholder's medical history.

Customersmay want to look at Asuransi MiSmart Insurance Solution (MiSSION) from ManulifeIndonesia. In addition to the customer being able to benefit from reimbursementof hospital expenses according to the bill obtained from additional insurancethat can be purchased together with basic insurance, customers will also get50% of the annual basic premium at the end of the 10th policy year and 700% ofthe annual basic premium at the end of the policy year. the 25th policy year,as well as the optimal UP that can be adjusted to the needs.

So far, haveyou thought about the benefits of investing in unit link insurance anddual-purpose insurance?

CAR insurance companies may already be
familiar with the Indonesian insurance industry. Founded in 1975, this company
has assets of up to IDR 5.4 billion.

On this occasion, LifePal will brieflydescribe how this insurance company was founded. In addition, of course, don'tmiss explaining the mainstay product of CAR Insurance.

Abrief history of CAR Asuransi Insurance

 The name CAR stands for Central AsiaRaya. This life insurance company is under the auspices of PT Asuransi JiwaCentral Asia Raya.

This insurance company was founded byAnthoni Salim who is also the owner of the Salim Group. Salim Group itselfcurrently owns shares in non-profit businesses which include Indofood,Indomaret, and so on.

The CAR insurance company also has 8regional offices, 82 marketing offices, and 53 customer service offices spreadthroughout Indonesia.

Of course, a massive nationalexpansion like this has shown its credibility as one of the best insurancecompanies in Indonesia.

The best productfor CAR Insurance

After getting to know the briefhistory of the CAR Insurance company, of course you should know the superiorproducts they have.

This is done so that you get an ideaof ​​​​a financial plan for the future through insurance.

1. IndividualProducts

This life protection product from CARhas many choices. In addition to providing protection from the risk ofaccidents or death, this product also provides other benefits.

Other benefits include old ageinsurance, long-term investment, children's education, and so on.

What's interesting about this type ofinsurance? Even competitive insurance premium payments can provide benefitsranging from Rp. 10 million to Rp. 10 billion.

Benefits are also given based on thetime of filing a claim or a predetermined period of time.

There are 13 (thirteen) protectionproducts from CAR that you can choose according to your needs, namely:

• AnandaScholarship
• WholeLife
• ProtectaRaya
• CArina
• CARLegacy
• FamilyPrevensia CARe
• WholeLife Executive
• CARityFund 20
• UnitLink
• DollarExecutive
• RupiahExecutive
• PrevensiaPro Ultimate Insurance
• PrevensiaCare Ultimate Insurance

2. GroupInsurance

This insurance product is intended fora company that needs protection for its employees.

The purpose of this insurance is toavoid the risk of accidents and provide compensation for death as long as theyare still officially declared employees of the company.

There are 3 (three) CAR insuranceproducts offered to companies that become customers according to their needs,namely:

• HealthInsurance
• Lifeinsurance
• TermInsurance

3. Bancassurance

The function of the bancassuranceproduct is to provide insurance savings through deposits to protect you andyour family from various risks.

The risks faced can be in the form ofhospitalization, long-term savings for retirement or education, mortgagepayments, and so on.

There are 3 (three) CAR insuranceproducts offered to several cooperative banks according to their needs, namely:

• Funding
• Lending – Credit Life
• Card Center

4.Retail Insurance

Have a small or medium business? Haveyou ever been suddenly afraid of having to swallow a loss if there was adeficit and even went bankrupt?

If you need insurance protectionagainst a business that has been initiated so as not to reap a lot of losses,this CAR insurance product is also a great choice for you.

There are 8 (eight) businessprotection products from CAR that you can use, namely:

• AccidentProtection
• CriticalIllness Protection
• CentralAsia Health Protection
• CentralAsia Life Protection
• CentralAsia Disease Protection
• Blessingsof Saint Joseph
• CentralAsia Prevensia Care
• LifeProtection 2.0

5. Microinsurance

Do you need insurance at a moreaffordable price and don't want to be complicated? CAR also has micro insuranceproducts with lower insurance premium payments.

Only by paying an insurance premium ofIDR 43,500 to IDR 50,000, you will get protection from the risk of death withcompensation of up to IDR 25 million.

There are 2 (two) CAR insuranceproducts that you can enjoy for optimal protection at affordable prices,namely:

• ThePeci Micro Insurance
• DengueFever Insurance

6. FinancialInstitution Pension Fund (DPLK)

Do you already have a fixed retirementage? However, you don't have enough savings to support retirement?

For those of you who are still lookingfor a suitable retirement insurance recommendation to guarantee a peacefulretirement, CAR insurance has a DPLK insurance product.

The function of this insurance productis to manage pension funds, make investments based on applicable regulations,collect contribution funds from insurance customers, and so on.

Not only that, this product alsomanages severance pay.

There are 2 (two) protection productsfrom CAR that can be used to obtain financial security in retirement, namely:

• RetirementProgram
• SeveranceProgram

7. Shariainsurance

Supervised directly by the ShariaSupervisory Board, CAR also launched sharia insurance products.

The provisions that are owned are notmuch different as long as they are in accordance with Islamic law. Not onlythat, this insurance also has products that are no less interesting.

This sharia-based protection productis held based on customer needs in the education, life and health sectors.

There are 4 (four) protection productsfrom sharia CAR that can be used to guarantee your finances by managingsharia-based funds, namely:

• FathanahScholarship
• CARlisya
• IstiqomahHajj Fund
• SakinahWaqf

8. BPJS Health

One of the advantages and uniquenessof the CAR insurance product is the collaboration with BPJS Health.

This agreement was initiated in 2014with the basic objective of protecting CAR insurance customers from obtaininghealth insurance rights from social insurance.

In other words, all customers getdouble protection, both from CAR and BPJS Health.

What lifeinsurance policy suits your needs?

Life insurance has various types ofinsurance policies, each offering benefits and coverages that can be tailoredto the needs of prospective customers.

That's about information about the insand outs of CAR insurance companies and their superior products. Of course theproducts they offer are very interesting.

Having a
personal investment in the financial market has now become a productive
lifestyle among young people or first jobbers. The old view that investment can
only be done by people of mature age is no longer relevant. This can be seen
from the demographic data of investors in Indonesia, which is increasingly
dominated by the young millennial age group.

Based ondata from the Indonesian Central Securities Depository (KSEI), it was notedthat the number of investors or Single Investor Identification (SID) in thedomestic capital market until the end of 2020 reached 3.87 million investors.This figure increased 56% compared to the position at the end of 2019. Of thenumber of investors, almost half of them were under 30 years old, while the agerange of 31-40 years reached 25% of the total number of domestic investors in2020. In other words, 70% of market investors Indonesia's capital is youngpeople.

If we areunanimous about wanting to start investing in the capital market, try followingthe guidelines for how to invest in the following financial markets:

Guide toInvesting

1.Understand Investment Concepts and Risks

Insurance isbasically the easiest financial risk management mechanism. Anything that posesa risk to a person's financial condition should be insured. Although noteverything can be insured, there are at least two types of insurance that arevery important to have; namely life insurance and health insurance.

For youngpeople, these two types of protection are often ignored because they feel thatthe risk of getting sick and dying is not too big. Mental protection and healthare sometimes considered as the needs of mature age groups who are alreadymarried. Of course, this assumption is inaccurate, because no one can predictthe risk of getting sick or dying.

So, whentalking about which insurance is more important, then the answer is, bothbuying life protection and buying health protection are equally important.However, if you are still in a situation where you have to prioritize spendingpremiums, you can consider options based on the following guidelines.

2. HaveClear Financial Goals

The nextstep if you want to start investing is to list the financial goals you want toachieve through investing. Financial goals are simply defined as a conditionthat you want to achieve in relation to a certain financial fund target for acertain period. By having financial goals, the way you invest can be moretargeted because you have clear targets and strategies.

You can alsodivide your financial goals according to the target time. First, short-termfinancial goals are financial goals that you want to achieve in less than 3years. For example: homecoming and year-end vacation funds, first house downpayment funds, and so on. Second, medium-term financial goals, namely thetarget funds that you want to collect in the range of 3-5 years. For example,marriage funds in 3 years, postgraduate school funds, and others. Third,long-term financial goals, namely target funds to be achieved in a span of morethan 5 years. This includes pension funds, children's education funds atuniversities, and so on.

From each ofthese financial goals, determine the target funds that we want to realize. Forexample, a marriage fund in 3 years is Rp. 100 million, a down payment for thefirst house is Rp. 150 million, and so on.

3.Determine the Investment Instrument

After havingfinancial goals that have been categorized based on the timeframe forachievement, then you can begin to determine the choice of the right investmentinstrument according to the time horizon of your financial goals and riskprofile. The time horizon is very important because it will affect theassessment of the risk of an investment instrument and its effectiveness in helpingyou achieve the predetermined target of funds. For example, if your financialgoal is to prepare a marriage fund in 3 years of IDR 100 million, then theright investment choice is an instrument with a low-to-medium risk level suchas money market mutual funds and fixed income mutual funds. Stocks are notrecommended for 3-year financial purposes because the risk of pricefluctuations is too high in the short term.

Whenreferring to risk grouping based on the time horizon, then you can use thefollowing reference.

·        Shortterm financial goals < 3 years

·        Mediumterm financial goals 3-5 years

·        Long-termfinancial goals above 5 years

In additionto considering the time horizon, in choosing an investment instrument, makesure you pay attention to your risk profile as an investor. How to check it?You can fill out the risk filling sheet every time you want to start investing.There are 3 categories of risk profile, namely conservative, moderate andaggressive investors.

Conservativeinvestors are characterized by the fact that they like stable investments,don't want the principal investment (initial capital) to decrease, and theydon't like fluctuations in investment value. Then, moderate investors areinvestors who can still accept price fluctuations, hope that their initialcapital will not run out completely, and are quite satisfied if theirinvestments grow beyond the inflation rate and bank deposits. Finally,aggressive investors, namely investors who are ready to take the risk of losingtheir investment capital, are comfortable with sharp price fluctuations becausethey want their investment to grow many times higher than deposit interest(risk free rate).

4. Openan Investment Account

After havinga clear plan of financial goals and a choice of investment instruments, it'stime to execute the plan. To invest in the capital market, you are required tohave an investment account. How to open an investment account is not difficult.You can do this through the right financial institution such as a securitiescompany if you want to invest in stocks, or an investment manager company ifyou want to start investing in mutual funds online, and so on.

Usually whatis needed to open an investment account is a personal identity card, a TaxpayerIdentification Number (NPWP), a bank account number, filling out an initialinvestment form, and other requirements that you can check at the relevantfinancial institution. Currently starting to invest is easier with theexistence of financial technology (fintech) companies that allow you to startjust from a gadget without having to go to the physical office of the companyconcerned.

Oh, yes,investment capital is also not expensive, you know. You can start investingwith minimal capital. For example, a mutual fund investment can start with justIDR 100,000. Stock investment is also not expensive, which is enough to buy 1lot (100 shares) as a start.

5.Execute Disciplined Investment

Ininvesting, you need to have the right strategy. Strategy helps you optimize thecapital you have in order to achieve investment targets according to financialgoals. For example, for investing in equity funds, you choose the dollar costaveraging (DCA) strategy or monthly investments because you do not havespecific time to monitor daily stock market movements. There is also a valueinvesting strategy in stock investment, and other strategies that can be chosenaccording to your convenience and financial goals.

Don't forgetto evaluate your investment performance regularly at least every semester. Youcan check the performance of investment returns reports that are regularly sentby securities or related investment managers.

The fivetips on how to invest above can help you get started with investing.

Beforestarting to invest, it would be better if you start by having financialreadiness. Some indicators of financial readiness include: financial cash flowconditions are surplus or not in deficit, controlled debt installments do notexceed 30% of the value of regular monthly income, and already have anemergency fund of at least 30% of the ideal emergency fund target value.

Likewise,the ownership of personal insurance, try to meet the needs of basic insurancesuch as health insurance and life insurance in order to protect financialconditions from various life risks. We can also choose insurance that isequipped with investment benefits, such as Manulife Investment Protectorproducts or others which can be seen here.

Now, if thereadiness indicators have been met, we can prepare the next investment step. Onthe other hand, if it turns out that your financial condition has not met yourreadiness, it is better to focus on improving it so that later you can startinvesting with a healthy financial condition.