Want to have insurance? This must be understand - Before deciding to buy an insurance policy, we need to know that we have to pay premiums regularly to keep the policy active and provide benefits. What's the difference between a premium single and a regular premium?
Regular or regular premium is a payment made periodically, monthly, or annually, as agreed. Single or single premium is the payment made once for customer accountability.
Depending on the type of liability required and the respective risk profile, the amount of insurance premiums payments must vary between customers. What components affect the insurance costs that customers have to pay?
There are several determining factors [1]. The first is the product and benefit of the selected insurance, where the value of the premium paid will also be higher if the product or benefit selected is more comprehensive.
The second is the amount covered, in which the more people become liable, with the significant benefit of protection being the option, the higher the premium costs to be paid.
The potential client's risk factor is the third component. Insurance companies calculate premiums based on insurance history, residence, and other related elements. Other risk factors, such as age and health conditions, are also crucial for life insurance.
Customers need to know and understand where premiums are paid to get the best insurance benefits. In addition to the insurance premiums, there are additional allocation charges, such as:
Acquisition costs include health checks, purchasing policies, and printing documents. The significant costs depend on the insurance product and the insurance company.
Routine insurance fees are paid as long as the police are active and serve as a deposit if the balance is eventually exhausted or expired.
Administrative fees vary depending on the type of payment chosen by the policyholder: annual (12 months), half-year (6 months), trimester (3 months), or monthly.
The withdrawal and redeeming policy charges apply when Nas | withdraws or maintains a periodic premium unit balance.
The tax charges charged by the customer for the withdrawal or redemption of the policy are carried out by the applicable Tax Act.
If a client or prospective client chooses an Investment Associated Insurance Product (PAYDI), the cost of managing an investment fund ranges from 0.75% to 2% of each investment program.
Having understood the insurance premiums and their allocation costs, you can be wiser in calculating the premiums to get the desired benefits. Besides, choose an insurance company with a long history of providing insurance products and services.