The right insurance package will help maximize the value of life insurance. So, what are the key criteria to choose the best life insurance package today?
It is anyone's desire to buy the best product, no matter how much money they spend. With a common product, there are usually sufficient and clear specifications and prices for quality judgment. However, life insurance is totally different, as the price and value of an insurance product are not generally quantified but depend on each insurance policy tailored to each specific subject.
And the best life insurance product is the one that meets the needs and conditions of the policyholder at the time of participation. That is to say, there are still basic criteria to choose the best and most reputable life insurance available today.
The ultimate goal of everyone when participating in life insurance is to make a financial backup for the future, rather than using it. But life is all ups and downs with various unexpected uncertainties, and full and timely payment of benefits will be all you wish when such times come. Therefore, analyzing the needs and understanding the benefits of each main plan as well as its riders is the prerequisite for you to choose the best insurance package.
A main life insurance plan will normally come with 4 benefits including hospitalization benefit, critical illness benefit, death benefit, and maturity benefit. In addition, with each specific plan, there will be other benefits, for example, an insurance plan for children will provide better educational benefits, a retirement plan will provide better retirement benefits, an investment-linked insurance plan will provide both protection and investment opportunities for profit, etc. And with each main plan, it is allowed to buy riders to increase benefits or provide further protection to you such as more comprehensive health care rider, accident rider, premium-waiver rider, etc.
Thus, it is important to determine what risk in life to be covered with the financial provision and what risk concerns you the most, for what purpose you want to accumulate in the future, who will be co-insured on a policy or how many diseases you wish to be covered, etc.
For the same insurance product, but with each subject with different needs, a different policy will be tailored. Therefore, the more details you share about your own needs, the easier it is for a consultant to design an insurance package with the best benefits, which is the best product for you.
2. Suitable premiums for current conditions of personal or family finance
A good life insurance product is not necessarily a product with high premiums and great benefits, but first a product that can be maintained consistently to ensure the purpose of long-term protection for health, body, and life against unexpected risks. The policy would be difficult to maintain if the next payment periods cannot be guaranteed as the premium is too high. On the contrary, the best financial support cannot be obtained from life insurance if the premium is too low.
Thus, to avoid policy cancellation, it is a must that the premiums are affordable given your current financial conditions. The perfect premium is about 10-15% of the policyholder's total income. This rate should increase with your positive financial position in the future to always keep up with the need for greater financial contingencies.
Due to this flexibility, you can participate in life insurance with any amount of premium, from VND 8 million/year, 15 million/year or even 30 million or 50 million/year, as such, you will not have to pay for any hefty premium.
3. Adequate policy term and years of premium payment
Benefits and premiums are not the only two criteria to be taken into consideration for a good insurance package, which also needs many other factors including the policy term and the number of years of premium payment. One of the greatest features of life insurance is its timeliness, which means when a risk event occurs to you or when you are in need of a large amount of money to achieve your goals, insurance will be available and help replace most of your financial burden.
A life insurance package can only realize this purpose with an adequate policy term and number of years of premium payment. In particular, insurance packages for children with the goal of accumulating academic funds when the children go to college, study abroad or packages with the goal of accumulating for retirement plan need to be entered into at the right age to bring into full play the value of insurance.
Through this post, you should have understood that the most important thing when choosing the best life insurance product is understanding your needs, your goals, and your own financial conditions.