Understand correctly about life insurance


1. The main purpose is to protect against risk, not to save profit

Although life insurance still ensures future profitability like savings channels, the main purpose of life insurance is to protect against unexpected risks, so the profitability cannot be as high as when saving money. bank money.

Therefore, you should not compare insurance and savings or buy insurance from a good profit perspective. Instead, you should clearly define your needs to choose between the right risk protection insurance and the most profitable savings through insurance benefits.

2. As a long-term financial channel to prepare for the future

The future is a long way and it is not known yet what good or bad will come. So, the thing to do is to plan carefully at this point. One of the ways to provide long-term financial protection for the future is life insurance . Since the later years of life, the risk will be greater, so choosing to participate in life-protected products will help the insured always feel secure because there is insurance support.

3. Protects only against unforeseen risks, not pre-existing ones

When it comes to life insurance, it is impossible not to mention risks - unexpected bad things happen that cause loss, loss and danger to people. Insurance is associated with risks, but not all risks are guaranteed life insurance benefits.

Only risks that occur unintentionally causing damage to the health, body and life of the insured during the effective period of the policy are insured and paid. In addition, insurance will not cover risks that are intentional or inherent and present prior to the effective date of the policy unless notified and approved by the company.

4. Not having to protect against "all" risks

Not only life insurance, all insurance products have limited protection and do not protect against "all" types of risks. That is why, before signing an insurance contract, participants need to know what risks they will be protected against, in which case each risk is paid, the benefits received how much and what specific cases will be excluded.

The policyholder should note that the insurance will not pay in cases such as death by suicide within 2 years, criminal offenses, HIV/AIDS or execution; cases of intentionally or intentionally causing harm, pre-existing diseases, cases of breaking the law....

It is not too difficult to understand what life insurance is, but if you want to understand more deeply, do not ignore important things to know around life insurance such as the nature of insurance, insurance  companies , types or understanding. basic features to avoid confusion later.

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