the advantages of having Sharia Based Life Insurance
On the page yesterday I discussed Bank Danamon with vision and mission as well as insurance
For those who have not read the best life insurance Indonesia danamon
now I will discuss about the advantages of having Sharia Based Life Insurance
Sharia banking products in Indonesia are increasingly popular these days, including sharia life insurance. Sharia-based life insurance is also carried out without knowing usury, in accordance with Islamic law. Basically, life insurance holds the main principle in which neither the insurance company nor the customer will be harmed. In this case, the funds that you deposit as sharia life insurance premiums will be managed in a Tabarru account or in the form of social funds. So, what benefits can be obtained from this syariah-based life insurance policy?
Monthly premium fees are more affordable
To get insurance benefits as stated in the policy, each customer will be asked to pay a premium on a regular, weekly, monthly, or even annual basis. Interestingly, the cost of premiums on Islamic life insurance is relatively more affordable when compared to conventional life insurance products. However, even though it is cheaper, it does not mean sharia life insurance is not safe. Please note that all Islamic financial activities are always under supervision and first obtain approval from the Sharia Supervisory Board.
Free usury with the concept of risk sharing
As explained at the beginning of this article, sharia life insurance is free from riba, because all funds deposited by customers will be managed in a tabarru account or social fund. Thus, the principle of work carried out is mutual cooperation in which the social funds can be used to help other customers who are being hit by disaster and claiming life insurance they have. This concept is also known as risk sharing.
On the other hand, if a portion of the insurance fund will be used for investment with a mudharabah agreement, the company will manage the investment fund in accordance with the agreement stated in the profit sharing contract. That way, there is no usury that is either maisir (gambling) or gharar (obscurity of funds) because the calculation of the ratio has been done at the beginning of the purchase of sharia-based life insurance policies.
Flexible time period
Sharia-based life insurance policies also have a flexible term so that they can be tailored to your needs and financial conditions. At Bank Danamon, you can also buy sharia-based life insurance policies through Prima Amanah Protection products. Only by paying a premium starting from Rp.50,000, you can choose a flexible term of protection between 10 to 15 years. In addition, there is also a return of contribution at the end of the protection period when the policy is due.
Transparency of fund management
In Islamic life insurance, all parties must not feel aggrieved. Even from the very beginning of purchasing an insurance policy, customers will get detailed and detailed explanations regarding sharia-based life insurance products that will be offered. Furthermore, fund management in Islamic life insurance also uses the concept of revenue sharing that was clear at the outset. For example, Tabarru's presentation is 60%, while the percentage is 30%. Through the transparency of the management of these funds, the risk of gharar (lack of clarity of funds) can be prevented
Life protection with a large nominal compensation
In Islamic life insurance products, the premium paid by the customer remains the customer's property. The insurance company is only responsible for managing these funds in a tabarru account. That way, the concept used is a wadiah or deposit so that funds will be returned to participants when the policy matures. So, Islamic life insurance does not recognize charred funds. Interestingly, the compensation provided is certainly in large amounts because it is a joint fund from other customers in the Tabarru account.
This sharia-based life insurance policy is not only intended for Muslims, you who are of other faiths can also buy this insurance product. To get these benefits, Danamon provides Prima Amanah Protection, which you can open in all Danamon branches.
that's a bit of a review about Bank Danamon Syariah-Based Life Insurance. Hope it will be useful!