Indo, 2008 crisis had hit sales of unit-linked products alias type equity funds investing in stocks based products fell sharply. For example, according to Manager of Marketing & Commonwealth Life Nonagency sound of chuckle Sofyan Budiman, the product Commonwealth Life equity funds in 2008 was down 50.96 percent.
Not surprisingly, many unit-link customers are traumatized with this product. Benny Putranto, for example, claimed to see the fruit of his money around Rp 150 million in unit-linked fallen drastically. Soon, he closed the unit-linked products and break up the relationship with the insurance company issuing units that link. Until now, he has not dared to try to buy a unit-linked products again.
Why does this happen? Quite simply the answer is, many customers were not yet fully understand the insurance product wrapped in this investment. Not only do not understand well the structure and purpose of investing in unit-link, many of them think, the unit's risk-free link.
In fact, the main principle of buying insurance and investment products is get to know the product you buy. Also, buy a product that suits your needs and your own financial capabilities.
Let not confused dealing with unit link, let us recognize the variety of unit-linked products on the market today.
Based on the placement of funds
As mentioned, link units included in the class of nontraditional insurance. The traditional insurance products consisting of term life insurance and term life or whole life or endowment. Unit-linked products were a mixture of two financial products, ie, life insurance and invstasi products. So. premiums paid by customers are divided into two purposes. First, for the purposes of protection. Second, for the development of investment funds alias. Typically, funds investing in mutual funds played.
Based on the placement of investment funds, unit link is divided into four kinds. Four types are link units or units of money market cash fund unit-linked, unit-linked fixed income fund fixed income alias unit-linked, unit-linked managed fund or unit-linked mixed income, and equity fund units link the alias unit-linked stocks.
Besides, now growing unit-linked products that invest funds or unit linked to Islamic sharia. We think of it, this kind as a kind of fifth.
Why the division based on the placement of funds similar in terms of investment in mutual fund products? Already alluded too, is because the investment strategy of forging unit linked assets in mutual funds.
Sound of chuckle said, the type of recommendation to the customer unit also links with the recommendations of the mutual fund clients, which is in accordance with their nature or their investment patterns: aggressive, modest, or conservative. "But, keep this in unit-linked products, the final choice in the hands of customers," said the sound of chuckle.
Therefore, the sound of chuckle notice, choose the link units also need to adjust the character of your investments and your attitude toward risk. For example, banner Harsanto, Financial Planning & Money Love pointed out, if classified as clients aggressively, then the product is suitable for your equity funds.
Similarly sebalikma prouk equity funds unsuitable for the conservatives. Cause. value of units of this stock-based products follow the movements of stock indices fluctuated. Thus, the development of your investment funds will follow the trend of stock indices.
More precisely, let us discuss one by one type of product. Product unit of cash funds or money market fund portion will put investment in money market instruments, such as Bank Indonesia Certificates (SBI), time deposits, and letters uaang with tenures below one year.
Unit linked financial markets, according to the banner, perfect for those who are not familiar with the risks. In addition to the short tenor, also the lowest risk investments.
Next, unit-linked fixed income products. Usually. This product will put a portion of the fund's investment policy holder at least 80 per cent in debt instruments. New rest in money market instruments. For those of you who want to obtain a relatively stable rate of return, fixed income unit-linked products could be an option.
While on a unit-linked managed fund products, the placement of the portion of funds for investment can be varied, such as stocks, bonds, and money market instruments. For example, the investment will be put in stocks, bonds or money markets. This type of link unit is suitable for the customer who preyed adequate income while expecting the results of long-term investment.
Furthermore, the type of unit linked equity fund products. Sound of chuckle said, the share of investment in this product is very diverse. However, generally the largest portion of shares placed in the instrument. If you are an aggressive type, who expect high investment returns and are familiar with high risk, this product is right for you.
Well, equity funds are also still many variants, depending on the insurance companies that offer. There are insurance companies that focus on infrastructure issuers sahamsaham, nusalnya, or can also type link unit that places a special investment funds in commodity emitenemiten.
Finally, unit-linked products pendmpatan Islamic investment funds based on sharia principles. In unit-linked products shariah, also contains four categories. For example, unit-linked Islamic fixed placement. Placement policy of investment funds in this product is in Surat Wadiah Bank Indonesia (SBI special Shariah) and Islamic bonds.
While unit-linked products sharia type of equity fund, investment funds are usually placed in the shares of these listed companies are included in the list of Jakarta Islamic Index. That is, the stock market listed company whose business did not violate Islamic principles, such as the manufacture of liquor or the production of illicit goods.
Well, this fund category type of placement will be the basis for insurance companies in the publishing unit-linked products of them.
Based on the investment objectives
In addition to the placement of investment funds, products unit, the link can also be distinguished based on objective and investment protection. However, the actual purpose of this investment is not a separate product, but the insurance company's programs in order to match the needs of the customer.
Call it a unit-linked investment objectives for education or retirement. There are also links the family unit or units of professional links. According to the sound of chuckle, this is just a kind of package it in the way insurance companies offer their products.
Based on premium payments
In addition to the placement of funds and investment objectives, link units can also be distinguished by type of deposit premiums, ie single and periodic.
The Light of Financial Planners Financial Planning Consultancy Group Donny A. Wiguna explained, the unit linked single premium, customer must pay premiums in advance at the same time. Furthermore, customers no obligation to pay premiums again.
Single premium payment scheme is more suitable for someone who has been financially stable. Understandably, the deposit premium only occurs once during the period of protection insurance policy. As a result the value of premiums were classified as the largest of the other types of insurance.
Meanwhile, on regular premium system, the customer must pay the premiums in stages. Stages of payment can be monthly, quarterly, or every year until a certain time. This type of link units periodically prenu is suitable for customers who want to get protection and investment, but has a limited capacity of the bag. Typically, these products of their choice who is still young.
As a side note, if you choose this type, your investment funds should not be withdrawn aka locked for a certain period, say, six or seven years. Because, until the third year, your premiums are usually discharged to the cost of acquisition. Only after that, the premium that you contribute can be set aside for investment purposes.
When it produces anything, there are the costs deducted from here, such as fund management fees, administrative costs and others. As a result, investment returns or return will be reduced considerable. Probably, the actual return on a unit-linked investment bacilli can reach 30 percent, but funding was cut so that customers will only receive 20 percent.
Perhaps, are less of a problem if the management of these investments can provide high returns. The problem is when insurance companies fail to generate substantial returns. As a result, once cut, the result is tiny. So, on this condition, the locking scheme can be detrimental to customers.
With this system of regular premium, you can file off the premium if the financial condition you are not allowed to pay premiums. In fact, after a period of time, you may not have to pay the premium value of your investment karma enough to pay the premiums.
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