Common Mistakes In Buying Insurance and Unit Link

There are some common mistakes policyholders of unit-linked insurance products as well as hers, so do not give maximum results. Some of these errors seem trivial, but can be dangerous if left unchecked.

Financial planners say Aidil Akbar Majid, one of the most common mistake is to place the child as an heir in various types of insurance products.

"And the child that's not necessarily been capable so can not be a legal heir. What could it be the child of at least 21 years of age or married. If the policy holder dies before the child could be the heir then it could be trouble," he said in launching the book Unitlink Shocking in Jakarta, Saturday (01/10/2011).

Another common error occurs when buying insurance products are insurance insuring children in education. She said parents put it on her insurance, so if the child dies then the insurance for a new educational liquid.

"Then the money to whom? His son died first and his money out. Should the old man mounted insurance education, so that when his father died, his son could go to school," he explained.

According to him, this kind of error occurred more than 70% of insurance education in Indonesia. While the third mistake is to choose a small sum as premium per bulannnya expensive.

This, says Aidil, a lot happened in unitlink. Because this type of insurance has a very high monthly premiums, but the average results are small.

"The average person takes money from the insurance protection around Rp 1.5 to 4 billion. But if a link unit is not large, at only $ 50-200 million, but there are some who until Rp 400 million," he said.

In his recently published unitlink explained that this type of insurance can not provide protection and maximum return on investment than the usual type of insurance.

He added, unitlink insurance product itself is not bad, just that the conditions in Indonesia does not allow to maximize the insurance to the general public.

Then, what if we already have insurance unitlink? According to Aidil, if not discontinued just a year better.

"Indeed in the first year premium is gone, but if diterusin more precisely the missing. But if one year has passed, more and more potential losses. Better look at the health condition itself if still need to wear unitlink or better in-cancel it," he said.