Did you know, currently insurance can be combined with potential investment returns where the potential investment results can later strengthen protection. This is no longer something impossible thanks to the presence of Investment Linked Insurance Products ("PAYDI"). PAYDI can be used as a long-term investment instrument. However, you need to remember that PAYDI is not a savings or deposit.
The results of investing in PAYDI are the same as investing using other instruments, for example shares, bonds, money market instruments, which are greatly influenced by market price fluctuations of the type of investment fund chosen by the customer/potential customer so that the value can go up or down. Therefore, it is important for customers/potential customers to understand their risk profile so that they can understand the risk level of each investment fund they choose, and according to the investment risk tolerance they can bear.
By purchasing a PAYDI Policy, the main benefit you will get is the benefit of protection (protection) within a specified period of time according to your needs. To ensure protection for life risks that you may experience, you must make premium payments on time to keep the policy active (in force). Here are some of the main benefits of insurance protection if your policy is always active:
Stay protected when risks occur
An active insurance policy will continue to provide protection in accordance with the agreed terms and benefits. If there is a risk guaranteed in the policy, such as illness, accident or death, you will receive the protection benefits in accordance with the terms and conditions of the policy. That way, you can properly minimize financial risks and even provide peace of mind for you and your family.
Freedom to upgrade the policy according to needs and financial capabilities
If the policy remains active, you can also get convenience in choosing or expanding or increasing benefits that can be adjusted to the latest needs and financial capabilities along with the stage of life you are living. For example, your needs when you are not married and after you are married certainly have increased financial risks and require different protection. Well, this condition allows you to renew or readjust the policy according to your financial situation.
For the protection provided by the insurance company, there are component costs for the policy that must be paid by the customer, such as acquisition costs, insurance costs, administration costs, policy withdrawal and redemption costs, investment fund transfer costs, investment fund management costs, and taxes. These fees are taken from the premiums paid by customers. Further information regarding insurance costs can be read at the following link.
Apart from the cost component, what you need to pay attention to when you have a PAYDI Policy and are faced with a situation that means you cannot pay the premium, then you can take a premium holiday or premium leave, namely a condition where the Policy Holder does not make the periodic premium payments specified in the Policy temporarily but the coverage remains in effect.
When you do not make premium payments and choose to apply for a premium holiday, the cash value formed will be used to pay the costs of the policy, but your policy will only remain active as long as the cash value of your policy is sufficient to pay the policy costs. . Information on the amount of Cash Value and the amount of insurance fees, administration fees and other policy fees is available on the transaction statement and can be monitored by customers via PRUService in the Pulse by Prudential application.
According to OJK, for new PAYDI products after March 14 2023, premium leave is only permitted if there is a request or approval from the Policy Holder and the insurance company. To take premium leave, you must submit a request directly to the company or through a marketer 30 days before the premium leave takes effect and carry out a policy evaluation to ensure the cash value is sufficient to pay insurance costs and administration costs during the premium leave. It should be noted, if the cash value formed is insufficient to pay the policy costs, then the policy will run the risk of being lapsed where the protection benefits will stop. Apart from that, customers will also receive notification three months before the policy is declared lapsed via email or notification letter sent by post according to the correspondence chosen by the customer.
For this reason, for those of you who own a PAYDI insurance policy, to keep the policy active, you must continue paying premiums until the end of the coverage, even though you have entered a certain period, for example 10 years. When you have an initial consultation with a Marketer, you will generally be given an explanation regarding the illustration of premium payments over a period of several years which shows that this time period is the minimum period of protection for us in insurance, so it does not mean that you can stop paying premiums after a period of several years. This is achieved and still gets protection without paying a premium.
So, how can you ensure that premium payments are always on time and not missed? You don't need to worry. Currently, insurance companies continue to innovate to provide convenience and comfort for their customers in transactions. This includes Prudential Indonesia, which provides ease and comfort in premium payments through the following payment channel options:
First, you can make premium payments via auto debit via your savings account or credit card. For this, Prudential Indonesia has presented the PruPay Link facility. Detailed information regarding payment methods via PruPay Link.
Second, apart from the autodebit payment process, Prudential Indonesia also presents PRUServices which is a service on the Pulse by Prudential application to make it easier for you to access policies anytime and anywhere, including for the purpose of paying premiums. You can download the Pulse by Prudential application via the App Store or Google Play and enjoy the convenience of insurance services.
