10 things you need to know about life insurance
Currently, many people are still indifferent to buying life insurance because they believe that this type is not suitable for their needs. If you are learning about life insurance, please read the following 10 notes.
Life insurance is an issue that deserves attention. However, many people are still skeptical or unclear about this type of insurance. Are you a person on this list? So the following article is absolutely right for you.
1. If you are a financial pillar, you need to buy life insurance
If you have young children or are supporting family members, you should join life insurance. This serves as emergency aid in unexpected bad situations. On the other hand, if the economy is stable, the purchase of life insurance can be seen as a financial planning strategy.
2. Insurance is not only valid for a single individual
Life insurance can give beneficiaries peace of mind. Insurance will cover costs for people who stay behind to settle unpaid debts or mortgages, education costs, and sudden loss of income.
3. There are 4 main factors in life insurance
These factors include the insurance company, the owners, the insured and the beneficiary.
· Insurance company is responsible for compensation in case of death
· The owner of the policy is responsible for paying the premium to the insurance company
· The insured is the factor that has life insured
· Beneficiary is the person who receives the premium in the event of the death of the insured.
For some people who need to buy insurance in Europe, you should consult: Krebsversicherung
4. Depending on the participating age, the premium rate changes
People with the same sex, occupation but different ages will pay different rates. To find out how much you will cost when you join life insurance, do not hesitate to contact the insurance company that you are interested in.
5. Guaranteed investment interest
Unlike motorbike insurance or medical insurance, besides being protected when you are at risk, your insured amount is also interest rate. 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 is not as expensive as you think
Insurance premiums are relatively low in a mere policy. For example, a healthy person, 30 years old, participates in a 5-year insurance policy, pays only 30,000 VND per day but has a protection benefit of 2,000,000 VND. Thus, in 1 year, this person will pay 10,950,000 VND but can be compensated up to 730,000,000 VND.
7. Find out about life insurance fees
Basic / Enhanced Premium: is the premium of the basic/enhanced benefit selected by the policyholder.
Periodic premium: is the sum of the basic premium and the enhancement premium (if any) that the policyholder pays for the insurance contract.
· Risk insurance fee: is the monthly deductible fee from the contract account value to ensure the payment of insurance benefits in accordance with the provisions of basic insurance benefits.
· Contract management fee: is a monthly deductible fee. In 2018 is 31,000 VND / month (an increase of 2,000 VND per year but not exceeding 60,000 VND / month).
In addition, there are fees such as premium, fund management fee, contract account withdrawal fee, contract termination fee.
8. Meet with a counselor to make a plan for you
You should contact an insurance agent and meet directly with staff for clear advice as well as instructions on how to complete the insurance application procedures. Professional counselors with good professional knowledge will help you choose the insurance level that best suits your abilities to save you money and get optimal protection.
9. Physical examination
A health check is a must when buying life insurance. You will have your height, weight, blood pressure, heart rate measured, an intensive blood and urine test or an electrocardiogram recorded. This is to control three common diseases, cancer, diabetes and heart disease. Your insurance company will classify how much risk you have based on your current health, past medical history, and medical history of family members.
10. Learn carefully the terms of exclusion to avoid losing money in an unfair way
Be sure to carefully understand the insurance company's non-payment exclusions. Also, find out about health complications that your insurance company might refuse to pay you. This is to prevent the risk of participating in insurance but not being protected.
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