Life Insurance FAQ
Confused about life insurance? Get the answer to all the most frequently asked questions on life insurance.
Confused about life insurance? Get the answer to all the most frequently asked questions on life insurance.
Life insurance guarantees that your beneficiaries will receive a lump sum, known as a death benefit, after your death, in exchange for premium payments. Your beneficiaries can use the money for whatever they want, such as paying a mortgage, everyday bills, your funeral costs, or even putting a child through college. Life insurance provides a safety net that ensures that your loved ones are financially supported in the event of your death.
In its basic form, life insurance is designed to cover end-of-life expenses, loss of income, funeral costs, and other financial needs that a family may have in the event that you, the insured, pass away. However, life insurance is very flexible. The coverage can be used in many ways, such as:
There are various types of life insurance available. Below are some of the most common types available in Thailand:
Whole of Life Insurance
Whole life insurance provides coverage for the insured for the rest of his or her life. In addition to paying a death benefit, whole life insurance has an investment function that can accumulate cash value. They are also known as “permanent” or “traditional” life insurance policies.
Term Life Insurance
Term life insurance is the simplest form of life insurance. It provides coverage for a certain time period or a specific “term.” Its sole purpose is to protect your dependents in case you pass away. If you die within the term, your beneficiaries receive the death benefit. You can choose the term when you buy the policy, usually for 10, 20, and 30 years.
Supplementary Benefits or Riders
These are extra benefits that you can include to the main plan for an extra fee. These include benefits for accidental assurance, hospitalisation, medical expenses, accidental death or disablement, income protection, critical illnesses and so on.
“A life insurance policy allows you to specify how much money you want to leave to your loved ones when you die, allowing you to account for things like the mortgage, university fees for your child and money for your partner to support the family.”
This is a very personal decision. We recommend that you begin by determining what benefit are most important to you. When choosing a plan and its premiums, keep in mind how much money you have available to pay for your insurance (monthly or annually). For a more detailed explanation, you might want to speak with a financial expert. Keep in mind that everyone’s needs and circumstances are unique.
A life insurance policy guarantees that the insurer will pay a sum of money to the beneficiaries when the insured policyholder dies in exchange for the premiums paid by the policyholder during their lifetime.
Name, date of birth, identification or birth certificate number, relationship, percentage of share and address are all required. This information will assist the insurance company in processing claims more quickly and accurately.
Death can happen at any time. The most straightforward way to do so is to purchase life insurance as soon as you are able, healthy and able to pay the monthly/annual premiums. Some people make excuses not to buy life insurance because they believe there is still time. There is never enough time.