Life insurance is one of the important types of insurance, not only providing financial protection for participants but also a tool to help ensure the future for families and loved ones. With the main goal of protecting participants from unexpected health risks or accidents, life insurance also brings great financial value when participants die or encounter unexpected incidents.
WHAT IS LIFE INSURANCE?
Life insurance is a type of insurance that provides financial support to participants or their families in the event of the participant’s death, serious illness, or unforeseen accidents or events. Each life insurance contract can be designed to suit the needs of the participant, including benefits for illness, death, or events that cause serious financial damage. This is a form of long-term savings, in which the participant will pay a periodic insurance premium to receive benefits in agreed cases.
BENEFITS OF LIFE INSURANCE
Financial protection for the family: When the insured person passes away, the beneficiary will receive a large compensation amount, helping to ensure a stable life for the family, especially in difficult circumstances. This is a form of investment in the financial security of relatives.
Health support: Many life insurances products also include health care benefits, helping participants cover medical expenses when suffering from serious illnesses or accidents. This helps reduce the financial burden on participants during treatment.
Long-term savings benefits: Not only financial protection, life insurances is also an effective savings method. The insurance premiums you pay each year not only ensure protection benefits but also accumulate to become a large sum of money over many years, supporting you in long-term financial goals such as buying a house, educating your children, or retiring.
Financial care in retirement: One of the important benefits of life insurances is to help participants prepare for life after retirement. Through insurance products with accumulated benefits, participants can receive a large sum of money when they retire, helping to maintain a stable life without depending on children or relatives.
TYPES OF LIFE INSURANCE
There are many different types of life insurances to meet the diverse needs of customers. Here are some common types:
Whole life insurance: This is the most common type of life insurance. The participant will pay a periodic insurance premium for life, and the insurance benefits will be paid to the beneficiary when the participant passes away. This type of insurance helps ensure peace of mind for the family, because it provides lifelong protection for the participant.
Term life insurance: This type of insurance provides protection benefits for a certain period of time, such as 10 years, 20 years, or until the participant reaches a certain age. At the end of the insurance term, if the participant does not encounter any risks, the contract will end and there will be no more protection benefits. However, participants can receive a savings amount based on the benefits contributed during the insurance period.
Investment-linked life insurance: This is a life insurances product that combines insurance and investment. A portion of the insurance premium will be used to purchase insurance, the remainder will be invested in financial products such as stocks, bonds or investment funds. This type of insurance helps participants both protect their finances and generate passive income from investments.
Mixed life insurances: This is a combination of whole life insurance and term life insurances. This type of insurance can provide long-term protection but also allows participants to receive a savings amount when the insurance expires.
FACTORS TO CONSIDER WHEN CHOOSING LIFE INSURANCE
Financial capacity: One of the most important factors when choosing life insurances is your financial capacity. You need to determine the amount of insurance premium you can pay periodically throughout the contract period. Choosing an insurance package that suits your financial capacity will help you avoid financial pressure when participating in insurance.
Insurance benefits: Before signing a contract, you need to carefully study the insurance benefits you will receive, including benefits for death, illness, accidents, and other additional benefits such as exemption from paying premiums when encountering unexpected events. You should also consider support services such as medical advice, free medical examination and treatment, or financial support when facing difficulties.
Protection period: Life insurances protection periods vary widely, from a few years to a lifetime. You need to consider this time based on your financial goals and the protection needs of yourself and your family.
Reputable insurance company: Choosing a reputable insurance company is also very important, because this is the unit that will be responsible for paying benefits to you when necessary. Before deciding to buy insurance, you should refer to reviews and comments from other customers to choose a reliable insurance company.
CONCLUSION
Life insurances is not only a financial tool but also an important protection measure for participants and their families. With the strong development of life insurances products today, consumers can choose insurance products that suit their needs and financial capabilities. Investing in life insurance is the way you protect your future and your loved ones from unforeseen risks in life.
