Let us refer to the following case:A 30-year old father has a monthly income of Rp 5.000.000, -. The father has a wife and a child aged 0 years (new born). The father wanted to send their children to the best universities in Indonesia.
He calculated the current tuition for 4 years already, including registration fees and the costs of teaching and learning, credits, etc. outside of books and transport costs is Rp 80,000,000, - (eight hundred million rupiahs), taking into account factors of education cost increases by 18% per year, for 18 years the cost had swelled to $ 1,573,860,075, - (one billion five hundred and seventy-three million eight hundred and sixty thousand seventy-five dollars).
To protect the family so much UP (sum assured) worth of life insurance for these fathers are for:
a. If using the Human Life Value method: the UP is Rp 600.000.000, - (six hundred million rupiahs), capable of sustaining a family life for a maximum of 10 years.
b. If using the Value-Based Income method: the UP was Rp 1,200,000,000, - (one billion two hundred million rupiahs), taking into account the interest rate of 5% per annum if the UP is stored in banking products, the result of an interest rate of Rp 5.000.000, -. Can be used to support family life.
c. If using a method based Value Financial Needs: the proper UP (on educational planning needs of the child) was Rp 120,000,000, - (one hundred twenty million dollars) to Rp 1,260,000,000, - (one billion two hundred sixty million dollars ).
Next is how the best way to choose life insurance product that best suits? In terms of product selection we will choose the most optimal product, in the above case we would need to know the range of premiums for each of the existing UP so that we get the best benefits of high However the UP with a minimum premium payment.
