Buy Insurance From The Bank
Insurance becomes one of the financial products that has enough users. Perhaps many people are aware of the importance of health insurance so that insurance sales have increased. This certainly gives fresh air to insurance companies. The perpetrators of banking do not want to miss to take advantage of these opportunities. They are increasingly vigorous in marketing various insurance products to many people.
Keep in mind, insurance products sold by banks are not banking products and it is very important to understand them from the beginning. Various complaints still often arise due to misconceptions related to bancassurance so it is important to have a proper understanding of the product. Therefore, there are some things that you must understand related to the purchase of life insurance in the bank as described below.
Banks sell life insurance. Of course this is not a new story. From year to year, banks have cooperated with insurance companies and produced bancassurance products. Banks have a considerable opportunity in selling the product. Because banks can directly offer it to customers who come to their office.
1. Non-Savings Insurance and Non Banking Products
It is too often misunderstood that most insurance users from banks / bancassurance assume that the product is a banking product. Insurance is not a savings product or any other type of banking products. Therefore, you must understand it from the beginning.
Do not assume that all products sold in the bank are banking products. Basically, the officer who sells insurance at the bank is an insurance company officer and not a bank officer. Most insurance products sold in banks are unit linked insurance that has an investment function in it.
As per its function, insurance certainly has a certain amount of risk. For example, suffered losses from the erosion of insurance funds that have been planted because the funds are also investment funds. Unlike savings deposits or deposits that have a guarantee from the Deposit Insurance Corporation, the amount of funds deposited into it will remain or even increase due to the effect of the interest that accompanies the fund.
2. Funds Can not Be Withdrawn
In banking products such as savings, it is possible to withdraw funds whenever you want. Something similar does not happen in insurance. Because there is no fund withdrawal system in the product. Insurance premiums that you have paid will not necessarily be withdrawn at will. Although it can, the amount is very small because the premium payment will be used for some of the following interests:
Keep in mind, insurance products sold by banks are not banking products and it is very important to understand them from the beginning. Various complaints still often arise due to misconceptions related to bancassurance so it is important to have a proper understanding of the product. Therefore, there are some things that you must understand related to the purchase of life insurance in the bank as described below.
Banks sell life insurance. Of course this is not a new story. From year to year, banks have cooperated with insurance companies and produced bancassurance products. Banks have a considerable opportunity in selling the product. Because banks can directly offer it to customers who come to their office.
1. Non-Savings Insurance and Non Banking Products
It is too often misunderstood that most insurance users from banks / bancassurance assume that the product is a banking product. Insurance is not a savings product or any other type of banking products. Therefore, you must understand it from the beginning.
Do not assume that all products sold in the bank are banking products. Basically, the officer who sells insurance at the bank is an insurance company officer and not a bank officer. Most insurance products sold in banks are unit linked insurance that has an investment function in it.
As per its function, insurance certainly has a certain amount of risk. For example, suffered losses from the erosion of insurance funds that have been planted because the funds are also investment funds. Unlike savings deposits or deposits that have a guarantee from the Deposit Insurance Corporation, the amount of funds deposited into it will remain or even increase due to the effect of the interest that accompanies the fund.
2. Funds Can not Be Withdrawn
In banking products such as savings, it is possible to withdraw funds whenever you want. Something similar does not happen in insurance. Because there is no fund withdrawal system in the product. Insurance premiums that you have paid will not necessarily be withdrawn at will. Although it can, the amount is very small because the premium payment will be used for some of the following interests:
- Paid a number of commission agents and insurance companies whose numbers even become the largest portion during the first five years.
- Pay for insurance coverage. The magnitude of this cost will increase with age.
- Become an investment fund (usually this happens in unit link insurance). A number of these investment results that you can enjoy later. However, if the investment returns bad, your funds will not be able to return.