Jakarta, Armfalcon.com – Unit Link is one of the Life Insurance products that has recently been popular with many people. The reason is, unit link has 2 benefits at the same time, namely life protection & potential investment returns.
However, it is very unfortunate, of the many people who have unit link products, there are a handful of people who are still complaining about this product, especially regarding investment returns. This proves that not a few people who buy unit link, but do not know what kind of product they bought.
When it comes to safety, people don’t need to be afraid. The reason is, in March 2022, the Financial Services Authority (OJK) has issued a Financial Services Authority Circular Number 5/SEOJK.05/2022 concerning Investment-Linked Insurance Products (SEOJK PAYDI) or what is known as unit link.
This regulation is intended to improve consumer protection and improve governance and risk management for insurance companies so that the marketing of PAYDI products, aka unit link, will not have problems in the future.
Through this new regulation, OJK is optimistic that the public will be free from unwanted problems. This regulation is also expected to foster public trust in unit linked products.
Economist at the Center for Reform Economics (CORE) Pieter Abdullah said, even though unit link currently has strong regulations, the public still needs to understand the features of this product and be careful in choosing a life insurance company.
The goal is clear, this is done so that customers can understand the products purchased according to their respective profiles and can avoid unwanted risks.
In choosing a unit-linked insurance product, Pieter advises the public to be able to first consider the company that manufactures or issues the product. In this case, the public can choose products issued by trusted state-owned or private companies.
“Bona fide insurance is usually included in international companies. You come from everywhere, in the United States, in Japan, in Indonesia. It means that the company’s back up is quite strong,” said Pieter in the Armfalcon.com Cuap Cuap Cuan Podcast some time ago. .
There are also other tips, namely understanding whether the insurance product is in accordance with the customer’s goals. Therefore, customers need to have a good understanding of the unit link insurance product they are going to buy.
After searching for various information about unit-linked products and reading various references, he said that prospective customers can confirm with the product sales team, especially when they are about to get a unit-linked policy.
“Repeat between the sales statement from the insurance and when we signed the policy. Often what happens is that the sales statement and the policy are different. Not because of fraud, but this is a matter of interpretation,” he explained.
However, one important thing that must be understood by the public is that unit link is an insurance product, not an investment product.
So that unit link clearly cannot be said as an investment product, let alone used as diversification. He argues that if the intention is to invest, then you must have a product that is purely for investment.
Pieter said unit links generally include long-term insurance products and must be calculated carefully.
“We take insurance for a purpose and we already have the ability to pay for it, don’t let it be because this is an investment and we can’t live it according to the time period,” he explained.
In the aspect of investing in unit links, users must know where the funds are invested, so that users know the risks.
“So, where will our money be placed and what is the risk, we must understand. Risk is in accordance with returns, if the risk is high cuanwe can expect high. Don’t let us think it’s low risk but cuan tall,” he concluded.
Not a trick, this is proof that link units can make money