Simas Income Protection (SIMPRO)

Simas Income Protection (SIMPRO) is a competitor return-of-premium term endowment from MSIG Life — a term-life contract wrapped around a savings milestone. The customer pays premium for 6 years, the policy protects them for 12 years, and at the end of policy year 8 — if they are still alive and the policy is in force — MSIG returns 100% of total premiums paid plus a small bonus (the bonus, “Z%”, is set by the insurer at policy issue; the documents on file show Z% as 7.5% in the RIPLAY assumption and 5% in the brochure example). It is sold without medical underwriting (Guaranteed Issuance Offer), which makes it easy to place, and it carries an explicit accident-on-public-transport top-up that doubles the death benefit if the insured dies in a public-transport accident in the first eight policy years.

The structurally interesting point — and the one Legacy Income agents should understand before they sell against it — is the gap between the return milestone and the end of cover. The premium comes back at year 8, but protection continues for four more years to year 12. In those years 9-12 the death benefit drops sharply: from 100% of the sum assured to 50% of the sum assured (capped at Rp 1.2 billion across all SIMPRO policies on the same life). So the customer is not “done” at year 8 — they hold a reduced-cover protection tail with no further premium and no further cash benefit. Whether that tail is worth holding, or whether the money is better redeployed, is the honest competitive question this brief equips agents to raise.

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The RIPLAY carries one official worked illustration. Decoded below, with the structural turning points called out for field use. The brochure carries a second, lighter example (Bapak Andi) which is summarised after.

Critical insight for the agent narrative: the headline a SIMPRO seller will lead with is “you get all your money back at year 8.” That is structurally true — but two things must be decoded honestly. First, the “bonus” above 100% is small (the documents show 5% to 7.5% across the full eight years — an annualised yield well below a bank deposit). Second, the cash value the customer has built (85% of premium at year 7) is wiped to zero at year 8 because it is converted into the premium-return payout — the customer cannot have both. And after the money comes back, cover continues at only half the sum assured to year 12. The product is a disciplined savings-with-protection wrapper, not an investment.

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This section frames who SIMPRO genuinely fits — useful for Legacy Income agents so they can recognise a real SIMPRO prospect and decide whether to contest the case or concede it.

Sweet Spot — A genuine SIMPRO prospect

• Mass-market working adults, roughly age 30-50 (the insured entry band runs 30 days to age 50), who want protection plus a forced-savings discipline and dislike open-ended commitments
• Customers who explicitly want their money back — psychologically resistant to “pure” term life where premium is “lost” if they survive
• Bank Sinarmas customers approached at the branch counter who want a simple, single-decision product with no medical exam (Guaranteed Issuance Offer)
• Budget-conscious savers — the Rp 1,000,000 minimum annual premium and Rp 100,000,000 minimum sum assured keep the entry point low
• Customers who value the finite commitment: pay for 6 years, then nothing more

Borderline Fit — A contestable case

• Customers whose real goal is growth or yield — the premium-return bonus is small and below deposit rates; they will be better served elsewhere and an honest agent should reframe
• Customers near the top of the entry band (age 48-50) — the 12-year horizon takes them to age 60-62, which is fine, but the protection value of the year 9-12 tail at 50% UP is thin
• Customers who already hold adequate term-life cover — SIMPRO then competes only on the savings angle, where a deposit or mutual fund is more transparent
• Single-income households relying on this as their primary death cover — the post-year-8 drop to 50% UP leaves a protection gap precisely when the family may still depend on the income

Do Not Pitch (for a SIMPRO seller — and the gap Legacy Income exploits)

• Customers seeking a large, durable death benefit — SIMPRO’s cover halves at year 8 and is capped at Rp 1.2bn; a level term-life or whole-life policy is the correct product
• Customers without basic health / medical insurance — a return-of-premium endowment is the wrong first priority; the medical layer comes first
• Customers who may need liquidity before year 5 — cash value is zero in years 1-4, so early exit means losing everything paid in
• Customers expecting cover to age 60+ at full sum assured — the contract ends at year 12 and runs at half cover for the final third of its life

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Rule of thumb: if the customer’s first sentences contain “uang saya kembali” (I get my money back), “nabung sekalian proteksi” (save and protect at once), or “nggak mau premi hangus” (I don’t want premium to be forfeited), a return-of-premium endowment like SIMPRO is genuinely in the conversation — and Legacy Income should contest it on the cover tail and the size of the bonus. If they say “berkembang” (grow), “imbal hasil tinggi” (high return), or “warisan besar” (a large legacy), SIMPRO is the wrong product and the agent should steer to investment-linked or to a proper protection plan.

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The Indonesian endowment category is structurally heterogeneous, spanning four sub-types: (a) return-of-premium term endowments where 100% of premium is returned at a milestone year, (b) staged-cash “dwiguna” endowments paying scheduled sums, © whole-of-policy endowments, and (d) investment-linked savings-endowment hybrids. SIMPRO is a clear sub-type (a) — with one unusual trait: its protection horizon runs four years past the return milestone, so it carries a 12-year cover term against an 8-year return point.

The comparison below is qualitative. Quantitative population benchmarking across the agency endowment set is not possible: endowment premiums are quoted off unpublished age/sex/sum-assured/term matrices, so category coverage sits below the 60% threshold required for population statistics. The figures below are category facts and structural reads, not benchmarked percentiles.

Confidence note: structural claims are reconstructed directly from the RIPLAY and brochure and are reasonably reliable; economic claims are directional. There is no published age/sex/sum-assured premium matrix on file, so category benchmarking is qualitative (below 60% quantitative coverage). The on-disk RIPLAY is the Bank Sinarmas bancassurance edition — the surrender table and Z% in particular should be re-verified against the agency-edition RIPLAY. Refresh trigger: re-run this brief when the agency-edition RIPLAY is obtained, or when endowment category PDF coverage exceeds 60%.

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These are positioning lines for Legacy Income agents pitching their own Allianz / Tokio Marine endowment or protection plan against SIMPRO. The framing is competitive: acknowledge the MSIG product fairly, then redirect to where Legacy Income’s offering is stronger. No exclamation marks, no hyperbole.

Opening — establish the right frame

“A plan that gives your money back is an appealing idea, and it is a fair thing to want. The right question is not whether you get the money back. It is what your protection looks like for the years after that, and whether the money working for you would do more somewhere else. Let me walk you through both, with the real numbers.”

“Rencana yang mengembalikan uang Anda memang ide yang menarik, dan itu keinginan yang wajar. Pertanyaan yang tepat bukan apakah uang Anda kembali. Tapi bagaimana proteksi Anda untuk tahun-tahun setelahnya, dan apakah uang itu bisa bekerja lebih baik di tempat lain. Mari saya jelaskan keduanya, dengan angka yang sebenarnya.”

The structural value prop — where Legacy Income’s plan differs

“Look closely at what happens after year eight. On the plan you are comparing, your premium comes back, which feels like the finish line. But the protection does not stay the same. It drops to half the sum assured for the final four years. So in the years your family may still depend on you, the cover is at fifty percent. With our plan, the cover holds at the full amount for the entire term. If protecting your family is the real reason you are buying, that difference is the whole point.”

“Coba perhatikan apa yang terjadi setelah tahun ke-8. Pada plan yang Anda bandingkan, premi Anda kembali, dan itu terasa seperti garis finis. Tapi proteksinya tidak tetap sama. Proteksi turun jadi setengah dari Uang Pertanggungan untuk empat tahun terakhir. Jadi di tahun-tahun ketika keluarga Anda mungkin masih bergantung pada Anda, perlindungannya tinggal lima puluh persen. Dengan plan kami, perlindungannya tetap penuh selama seluruh masa pertanggungan. Kalau melindungi keluarga adalah alasan sebenarnya Anda membeli, perbedaan itulah intinya.”

The close — certainty, commitment and an honest comparison

“Both plans ask you to commit for six years, and both are honest savings-with-protection products. The decision comes down to two things: how much your family is protected for in every year of the policy, and how much extra you actually earn on the money. I would like to put both plans side by side on one page, with the cover figure for every year and the real return on the savings part. You should decide on the full picture, not on the headline that you get your money back.”

“Kedua plan sama-sama minta komitmen enam tahun, dan keduanya produk tabungan-plus-proteksi yang jujur. Keputusannya turun ke dua hal: berapa besar keluarga Anda terlindungi di setiap tahun polis, dan berapa tambahan yang sebenarnya Anda dapat dari uang itu. Saya ingin meletakkan kedua plan berdampingan dalam satu halaman, dengan angka perlindungan untuk setiap tahun dan imbal hasil sebenarnya dari sisi tabungannya. Anda sebaiknya memutuskan berdasarkan gambaran lengkap, bukan hanya dari janji bahwa uang Anda kembali.”

Product-specific extra — the bonus and the yield

“One number worth checking. On the plan you are looking at, the amount returned is your premium plus a small bonus, and that bonus is fixed by the company in your policy. Across eight years, that bonus works out to a return below what a bank deposit pays. That is fine if you value the protection and the discipline of saving. But if you were told this is a way to grow your money, that is not accurate, and you deserve to see the real figure before you sign.”

“Satu angka yang layak dicek. Pada plan yang Anda lihat, jumlah yang dikembalikan adalah premi Anda ditambah bonus kecil, dan bonus itu ditetapkan perusahaan di dalam polis Anda. Selama delapan tahun, bonus itu setara dengan imbal hasil di bawah bunga deposito bank. Itu tidak masalah kalau yang Anda hargai adalah proteksi dan disiplin menabung. Tapi kalau Anda diberi tahu ini cara untuk mengembangkan uang, itu kurang tepat, dan Anda berhak melihat angka sebenarnya sebelum tanda tangan.”

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These are the objections a Legacy Income agent will hear from a customer who is weighing SIMPRO against a Legacy Income plan. Each is product-specific to a return-of-premium endowment. Full EN + ID parity; natural conversational Bahasa Indonesia; no exclamation marks.

1. “If I outlive the policy, what do I actually get — and why does cover continue after my money comes back?”

Customer “Kalau saya hidup sampai polis selesai, saya dapat apa — dan kenapa proteksi masih jalan setelah uang saya kembali?”

Don't say “You get everything back plus a profit, it is all upside.” — overstates the bonus and ignores the reduced tail.

Don't say “Anda dapat semuanya kembali plus untung, semuanya menguntungkan.”

Do say “Let me be precise. At the end of year eight you receive your premiums back plus a small bonus that the company fixes in your policy. After that, the policy keeps protecting you to year twelve, but at half the sum assured, and you pay nothing more. So the years nine to twelve are a reduced-cover tail you hold for free in cash terms — what you give up is the chance to put that returned money to work elsewhere. That is a real trade-off, and on our plan the cover stays at the full amount for the whole term. You should weigh both honestly.”

Do say “Biar saya jelaskan dengan tepat. Di akhir tahun ke-8 Anda menerima premi Anda kembali ditambah bonus kecil yang ditetapkan perusahaan di polis Anda. Setelah itu, polis tetap melindungi Anda sampai tahun ke-12, tapi dengan setengah Uang Pertanggungan, dan Anda tidak bayar lagi. Jadi tahun ke-9 sampai ke-12 adalah masa perlindungan berkurang yang Anda pegang gratis secara tunai — yang Anda korbankan adalah kesempatan memutar uang yang kembali itu di tempat lain. Itu pertukaran yang nyata, dan pada plan kami perlindungan tetap penuh selama seluruh masa. Anda sebaiknya menimbang keduanya dengan jujur.”

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2. “The return looks low compared to a deposit or a mutual fund.”

Customer “Imbal hasilnya kelihatan kecil dibanding deposito atau reksa dana.”

Don't say “Deposits and mutual funds are risky and unreliable.” — untrue and the customer will distrust you.

Don't say “Deposito dan reksa dana itu berisiko dan tidak bisa diandalkan.”

Do say “You are reading it correctly, and I will not pretend otherwise. The bonus on a return-of-premium endowment is small — over eight years it works out below a deposit rate. This kind of product is not built to grow your money; it is built to give you life protection while making sure your premium is not lost if you survive. If your main goal is genuinely growth, a mutual fund is the more honest choice and I would tell you so. If you want protection with a savings discipline, then the comparison that matters is which plan protects your family better, year by year — and that is where I would like ours measured against it.”

Do say “Anda membacanya dengan benar, dan saya tidak akan berpura-pura sebaliknya. Bonus pada endowment pengembalian premi memang kecil — selama delapan tahun setara dengan imbal hasil di bawah bunga deposito. Produk seperti ini tidak dirancang untuk mengembangkan uang; dirancang untuk memberi proteksi jiwa sambil memastikan premi Anda tidak hangus kalau Anda tetap hidup. Kalau tujuan utama Anda memang pertumbuhan, reksa dana adalah pilihan yang lebih jujur dan saya akan mengatakannya. Kalau Anda mau proteksi dengan disiplin menabung, maka perbandingan yang penting adalah plan mana yang melindungi keluarga Anda lebih baik, tahun demi tahun — dan di situlah saya ingin plan kami dibandingkan.”

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3. “The death benefit feels small for a life insurance policy.”

Customer “Manfaat meninggalnya terasa kecil untuk sebuah asuransi jiwa.”

Don't say “It is enough for most people.” — dismisses a legitimate concern.

Don't say “Sudah cukup kok untuk kebanyakan orang.”

Do say “You are right to notice that. A return-of-premium endowment is a savings product first, so the death benefit is sized modestly and, on this plan, it is also capped and it halves after year eight. If your real concern is making sure your family receives a large sum if you die during your working years, that is a different product. A term-life policy gives far more death cover for every rupiah of premium, and the cover stays level. The honest answer for many families is both: term life for the protection, a savings plan for the discipline. Let me size both for you so you see the difference clearly.”

Do say “Anda benar memperhatikan itu. Endowment pengembalian premi adalah produk tabungan lebih dulu, jadi manfaat meninggalnya dibuat sederhana dan, pada plan ini, ada batas maksimumnya dan turun setengah setelah tahun ke-8. Kalau kekhawatiran sebenarnya Anda adalah memastikan keluarga menerima jumlah besar kalau Anda meninggal di usia produktif, itu produk yang berbeda. Asuransi term life memberi perlindungan meninggal jauh lebih besar untuk setiap rupiah premi, dan perlindungannya tetap rata. Jawaban jujur untuk banyak keluarga adalah keduanya: term life untuk proteksi, plan tabungan untuk disiplinnya. Biar saya hitungkan keduanya supaya Anda melihat perbedaannya dengan jelas.”

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4. “If I stop paying or exit early, how much do I lose?”

Customer “Kalau saya berhenti bayar atau keluar lebih awal, rugi berapa?”

Don't say “You will not really lose anything.” — false for an endowment and a mis-selling exposure.

Don't say “Sebenarnya tidak rugi kok.”

Do say “I will be straight with you. On a return-of-premium endowment, if you exit in the first four years you typically receive nothing back — the cash value is zero. It builds only from year five onward, and even at year seven it is still below what you have paid in. The plan is designed to be held to the year-eight milestone. That is true of our plan too, so before either of us proceeds I want to be sure six years of premium is genuinely comfortable for you. If there is real doubt, we should not be doing an endowment at all — and I will say so plainly.”

Do say “Saya akan jujur. Pada endowment pengembalian premi, kalau Anda keluar di empat tahun pertama biasanya tidak ada yang kembali — nilai tunainya nol. Nilai tunai baru terbentuk mulai tahun kelima, dan bahkan di tahun ketujuh masih di bawah yang sudah Anda bayar. Plan ini dirancang untuk dipegang sampai titik tahun ke-8. Itu juga berlaku untuk plan kami, jadi sebelum kita lanjut saya ingin memastikan enam tahun premi memang nyaman untuk Anda. Kalau ada keraguan yang nyata, sebaiknya kita tidak ambil endowment sama sekali — dan saya akan mengatakannya terus terang.”

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5. “Six years of premium is a long commitment.”

Customer “Bayar premi enam tahun itu komitmen yang panjang.”

Don't say “Six years is short, it will pass quickly.” — minimises a real concern.

Don't say “Enam tahun itu sebentar, cepat berlalu kok.”

Do say “Six years is a real commitment and you are right to weigh it carefully. Two things make it manageable. First, after six years you are completely finished paying — the protection continues with nothing more from you. Second, the premium can be paid monthly, so it becomes a fixed line in your household budget rather than a lump sum. What I would not do is sign you up if the six years is uncertain, because the early-exit value is poor. Let us look at the monthly figure against your real budget and decide honestly whether it fits.”

Do say “Enam tahun memang komitmen yang nyata dan Anda benar menimbangnya dengan hati-hati. Ada dua hal yang membuatnya lebih ringan. Pertama, setelah enam tahun Anda benar-benar selesai membayar — proteksi tetap berjalan tanpa tambahan apapun dari Anda. Kedua, preminya bisa dibayar bulanan, jadi menjadi pos tetap dalam anggaran rumah tangga, bukan jumlah besar sekaligus. Yang tidak akan saya lakukan adalah mendaftarkan Anda kalau enam tahun itu belum pasti, karena nilai keluar lebih awalnya kecil. Mari kita lihat angka bulanannya terhadap anggaran Anda yang sebenarnya dan putuskan dengan jujur apakah cocok.”

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These are the issues most likely to trigger an OJK complaint or a customer churn-back when SIMPRO — or a Legacy Income product positioned against it — is sold. Build agent awareness around all of them.

1. The year-8 return versus the years-9-12 tail must be explained as two separate things. The single largest mis-selling risk on this product is letting a customer believe the policy “ends” or “pays out and finishes” at year 8. It does not: premium is returned at year 8, but cover continues to year 12 at only 50% of the sum assured. An agent who presents the return milestone without clearly stating that protection then drops to half cover for four more years has given selectively favourable disclosure. Both facts must be presented together, in writing, and the customer’s understanding confirmed.

2. The Z% bonus must never be quoted as a guaranteed or fixed number. The documents on file show Z% as 7.5% in the RIPLAY assumption and 5% in the brochure example. The RIPLAY states explicitly that Z% is determined by the insurer at policy issue and that the figure that applies is the one written in the policy. Quoting “you get 7.5% extra” as a promise is misrepresentation. Always describe it as a bonus set by the insurer and confirmed only in the issued policy.

3. Do not mis-apply the POJK 36/2025 co-payment regime to this product. POJK 36/2025 introduces a co-payment (cost-sharing) requirement, but that regime applies to health insurance products only. SIMPRO is a life endowment — co-payment rules do not apply to it. Agents and trainers must not import health-insurance co-payment language into any discussion of this endowment; doing so confuses the customer and misstates the regulatory position.

4. OJK conduct-of-business and bancassurance transparency rules are the relevant framework. OJK market-conduct rules require balanced, non-misleading product information and a documented suitability assessment. The on-disk RIPLAY itself reproduces the bancassurance transparency obligation: the customer must receive a complete explanation of benefits, risks, terms, costs, and the commission paid to the bank before the policy is concluded. Any pitch — competitor or Legacy Income — must rest on a documented suitability assessment and a complete written illustration retained on file.

5. The surrender table must be walked through year by year before any signature. Cash value is 0% in years 1-4 and remains below paid-in premium through year 7 (25% / 45% / 85% at years 5 / 6 / 7). A customer who is shown only the attractive year-8 return without being walked through the zero-value early years can legitimately claim mis-selling on early exit. The full surrender schedule must be presented and the customer’s acknowledgement recorded.

6. The on-disk RIPLAY is the Bank Sinarmas bancassurance edition — figures need re-verification for agency sales. The RIPLAY held on file states its distribution channel as Bank Sinarmas. While the commission clause confirms the product is genuinely dual-channel (premium includes both marketing-agent commission and bank commission), the surrender factor table, the Z% assumption, and any channel-specific terms should be re-verified against the agency-edition RIPLAY before this product is used as a competitive benchmark in field training. Treat the current figures as reliable for structure but provisional for precise numbers.

7. The Guaranteed Issuance Offer must not be oversold as “no conditions at all”. SIMPRO is issued without medical underwriting, which is a genuine convenience, but the policy still carries a 12-month initial period during which non-accidental death is not covered, a 24-month pre-existing-condition look-back, a 2-year suicide exclusion, and an extensive accident-exclusion list. An agent who presents “no medical exam” as “covered for everything from day one” creates a future claim-repudiation dispute. State the waiting periods and exclusions plainly.

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1. Build a side-by-side endowment comparison sheet (one page, EN + ID) placing Legacy Income’s Allianz / Tokio Marine return-of-premium or short-pay endowment against SIMPRO. Lead the comparison on the cover-tail difference — specifically that SIMPRO drops to 50% of the sum assured for years 9-12 — and on the size of the savings bonus. This is the highest-leverage competitive asset for agents who meet a SIMPRO prospect.

2. Train agents on the “year-8 return is not the finish line” talking point. Equip every agent to explain, plainly, that a return-of-premium endowment returns premium at a milestone but may continue at reduced cover afterward. This both sharpens the competitive pitch and protects Legacy Income’s own agents from the same mis-selling exposure on our equivalent products.

3. Obtain the agency-edition SIMPRO RIPLAY. Task the market-intelligence pipeline with sourcing the agency-channel RIPLAY (the on-file copy is the Bank Sinarmas bancassurance edition). Until it is on file, the surrender table and the Z% bonus for agency sales remain provisional, and this brief stays at Medium confidence. This is the single highest-value research action.

4. Run a return-of-premium feature audit on Legacy Income’s own shelf. Confirm whether our Allianz / Tokio Marine endowment offering holds level cover for the full term or also steps down, and document the real annualised return on the savings component. If our product holds level cover, make it the headline of the comparison sheet in item 1; if it also steps down, brief agents to compete on yield and total death cover instead.

5. Embed a suitability checklist into the endowment sales flow. In line with OJK conduct-of-business rules, require a documented suitability assessment — existing medical and life cover, six-year premium affordability, the customer’s stated goal (protection / savings discipline / growth) — before any endowment is written. Distribute as a one-page EN + ID form for agents to complete and retain with every application, and use it to filter growth-seeking customers toward the correct product.

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