1. Choose a reputable insurance company
Which personal insurance company is the best is the most searched question. Sincere advice if you want to buy life insurance is that you need to spend a lot of time researching the different insurance plans of each insurance company. Since each company will have its own strengths, it is essential to consider and choose the desired benefits.
Reputation is a top priority when choosing an insurance company. You need to consider the level of credibility through the trust of customers through acquaintances, consultants and official press information about that insurance company.
2. Find out life insurance packages that suit your needs
Different insurance plans will have different benefits. You need to base on the actual needs of your close friends and family to make a decision to choose insurance products. There are two common types of insurance:
- Insurance for protection such as health, injury, death, etc.
- Investment insurance such as financial accumulation, educational benefits or comfortable retirement, etc.
You should not entrust the entire responsibility to an insurance consultant without checking the information and insurance benefits. No matter how well the counselor supports you, always remember that the insurance company is the organization that pays your benefits. Please take the time to consider the value, read all the contract terms carefully and understand the problems in the contract thoroughly through the answers of the consultant or directly to the insurance company for advice.
3. Choose insurance with a reasonable premium and long protection time
The cost of insurance will determine the benefit when the risk occurs. That is, the higher the protection value, the higher the insurance premium.
Life insurance needs to be maintained regularly throughout the participation process, so you need to consider joining a suitable insurance policy with your family’s financial condition to ensure your benefits. 10-15% of your income is an ideal amount you can spend on insurance.
And do not forget to choose the insurance plan with a long protection period, life is the best because the risk can come at any time. And the older you are, the greater the risk, especially for health problems.
4. Choose life insurance plans with flexible premium contracts
Choosing a flexible premium life insurance plan helps you increase or decrease your premium at any time and without rigid constraints. Specifically, long-term insurance contracts over 10 years. If your income suddenly drops during the pandemic, you don’t have money to pay for insurance? Currently, only a few companies offer flexible contracts, allowing you to adjust the amount you pay each period should your income drop.
How much life insurance should I buy?
How much life insurance should you buy for safety and peace of mind is a question people always ask. Currently, about 3-4 million/year is the minimum amount to participate in insurance. Customers with normal health conditions and average income should participate in life insurance packages of about 300-700$/year. With a good or better income, you can pay a premium for a year of about 700-1400$.
Ideally, you should join an insurance package that only pays 10-15% of your monthly income to easily pay premiums while still ensuring your life needs.
You can refer to the premium rates of life insurance products on the market today. For children, the lowest life insurance premium is about 5 million VND/year. For those aged 18 and over, the life insurance premium is from 200-300$/year. Retirement insurance products are about 300-350$/year.
In summary, the amount to buy life insurance is not fixed but varies depending on the needs, age, gender, occupation, financial condition, etc. of each individual and family.