With so many options of life insurance, make sure you buy the right one.
When you pass, life insurance pays a lump sum to your beneficiaries in exchange for a monthly payment. Because there are several types of life insurance policies to choose from, the amount of money you will receive is determined by the policy you purchase. Buying a life insurance policy is an excellent strategy to ensure that your family has enough money to cover certain obligations, such as living expenses, mortgage payments, and funeral expenditures.
Life insurance is not required , but it may be important if you have a dependent spouse or child, family, or even a long-term partner. With life insurance, you can ensure that a large sum of money is paid out to your loved ones in the event of your death. A life insurance policy allows you to leave a lump amount when you pass, which can be used for things like your mortgage, your child’s university costs, or money for your partner to help sustain the family.
Purchasing life insurance is like getting a safety net to help your family avoid any financial burden in the event of your death. In other words, you should consider life insurance if others depend on your income for support. Even if you don’t currently have any of these needs today, you may still consider purchasing a policy, especially if you plan to have a family in the future. This is because the younger you are, the less expensive the premium you have to pay.
There are numerous different types of life insurance policy. However, the core policy is likely to fall into one of two categories:
Term life insurance Term life insurance is the most affordable and simplest life insurance option to protect your loved ones financially in the event of your death. It provides coverage for a certain period of time, or term, before expiring. If you die during this term, your beneficiary will receive a death benefit that can be used to pay bills, funeral costs, or any other purpose.
Whole life insurance Whole life insurance, also known as “permanent” or “traditional” life insurance policies, provides coverage for the rest of your life. In addition to paying a death benefit, whole life insurance has an investment function that can accumulate cash value. Purchasing whole life insurance allows you to financially protect your loved ones without having to worry about policy expiration dates. Your beneficiaries will receive a death benefit if you die while your whole life insurance policy is still active. Whole life insurance is a safe bet for high-earners or those with long-term financial commitments.
You will only need a few basic requirements to apply for life insurance in Thailand. With a few simple steps, you and your loved ones will have the best possible protection.
There aren’t many documents required to purchase life insurance in Thailand. The following are the documents you need to prepare:
Providing a better and brighter future for yourself, your family and loved ones is one of the most valuable gifts you can give them.
There is no “right” policy to purchase because it will be dependent on your needs. Each stage of life has different needs and each stage of life will focus on a different category of policy. It is critical to:
Know your needs and preferences Different people will have different needs and the reasons for purchasing a policy may include: income continuity in the event of death or disability, income for the policyholder if he or she becomes critically ill, savings or investments, and so on. Education for children, retirement income planning and investing for a better future are all important considerations.
Affordability of premiums Individuals will purchase insurance based on their needs as well as their ability to pay such premiums. In general, life insurance should be purchased based on one’s financial needs.
The main benefit of getting life insurance is that it provides financial support to your loved ones in the case of your death. They will receive a tax-free lump payment that they can spend as they see fit. You can buy life insurance for your children or spouse, but you can’t name your girlfriend or boyfriend as a beneficiary until you marry her or him. Consult a financial counselor before acquiring life insurance to guarantee that your beneficiary receives the death benefits. Life insurance might also give savings and investment opportunities. After you reach a specific age or pay the premium after a particular number of years, certain insurance plans offer payback with interest every one or two years.