Currently, many people are still indifferent to buying life insurance because they think this type of insurance is not suitable for their needs. If you are learning about life insurance, read the 10 notes below.
Life insurance is a matter of concern. However, many people are still skeptical or unclear about this type of insurance. Are you a person on this list? Then the following article is perfect for you.
1. If you are a financial pillar, you need to buy life insurance
If you have small children or are supporting family members, you should take out life insurance. This is as an emergency support measure in the event of unexpected bad situations. On the other hand, if the economy is stable, buying life insurance can be viewed as a financial planning strategy.
2. Insurance is not only valuable to a single individual
Life insurance can provide peace of mind to beneficiaries. Insurance will cover the costs of those who stay behind to settle outstanding debts or mortgages, education costs, and sudden loss of income.
3. There are 4 main factors in life insurance
These actors include the insurer, the owner, the insured, and the beneficiary.
· The insurance company is responsible for indemnification in the event of death
The owner of the policy is responsible for paying the premium to the insurance company
· The insured is the life insured
Beneficiary is the person who receives the insurance money in the event of the death of the insured.
4. Depending on the age of participation, the insurance premium may change
People with the same sex, occupation but different age will pay different insurance rates. To know your premium rates when participating in life insurance, do not hesitate to contact the insurance company you are interested in.
5. Guaranteed investment interest rate
Unlike auto insurance or health insurance, in addition to being protected against risks, your insured amount is also subject to interest. The interest rate percentage will vary from year to year but it will be stable, giving you more peace of mind with market fluctuations.
6. Life insurance isn’t as expensive as you think bạn
The premiums are relatively low in a single policy. For example, a healthy person, 30 years old, participating in a 5-year insurance policy, only pays 1.5$ per day but has a protection benefit of 100$. Thus, in 1 year, this person will pay 500$ but can be compensated up to 3.5$VND.
7. Learn about life insurance premiums
Basic/enhanced premium: is the premium for basic/enhanced benefits selected by the policyholder.
- Periodic premium: is the sum of the basic premium and the enhanced premium (if any) that the policyholder pays for the insurance policy.
- Risk premium: is a monthly fee deducted from the policy account value to ensure the payment of insurance benefits according to the provisions of the basic insurance benefits.
- Contract management fee: is a monthly deductible fee. 2018 is 1.5$/month (increasing by 0.1$ per year but not exceeding 3$/month).
In addition, there are fees such as additional premium, fund management fee, fee for withdrawal of contract account value, and contract termination fee.
8. Meet with a counselor to make a plan for you
You should contact an insurance agent and meet directly with the staff for clear advice as well as instructions to complete the insurance enrollment procedures. Professional advisors with good expertise will help you choose the insurance coverage that best suits your ability to help you save money and get optimal protection.
9. Health Checkup
A medical examination is a must when you want to buy life insurance. You will have your height, weight, blood pressure, heart rate measured, intensive blood and urine tests, or an electrocardiogram recorded. This is to control the three most common diseases, cancer, diabetes, and heart disease. The insurance company will classify you as to how much risk you have based on your current health, past medical history, medical history of family members.
10. Read the exclusions carefully so you don’t lose money
You need to carefully research the insurance company’s non-payment exclusions. Also, learn about health complications that the insurance company may refuse to pay you. This is to avoid the risk of participating in insurance but not being protected.