According to Ms. Tran Thi Mai Han - personal financial planning expert at FIDT Investment Consulting and Asset Management JSC, the greatest meaning of life insurance is to protect the finances of yourself and your family. Therefore, in the family, it is necessary to buy life insurance for the main income earner. That is the person who creates the source of money to ensure the family's standard of living.
"When the breadwinner dies or is no longer able to generate income, those who are financially dependent will face difficulties. At this time, life insurance will replace the breadwinner to continue to provide financial support for the family with the insurance compensation amount," said Ms. Han.
For young people, buying life insurance early will be the money you set aside to help your elderly parents take care of them if something unexpected happens. The loss of a loved one is hard to compensate for. However, financial shortfalls can be overcome through participating in life insurance. In addition, young people can participate in life insurance early when their health is still good and the life insurance premium is low.
According to recommendations from personal financial planning experts, the premium for a life insurance contract should be between 5 and 8% of annual income. If the premium is too low, the protection value will not be commensurate, not enough to compensate for financial shortfalls. On the contrary, if the premium is too high, it will create a financial burden for the family, making it difficult to maintain long-term life insurance.
Regarding the benefits required in an insurance contract, Ms. Han said that it will depend on the products of each insurance company. Normally, a life insurance contract has main benefits such as death benefits, permanent total disability or additional benefits such as critical illness benefits, accidents, hospitalization, and premium support.
The benefits that should be prioritized for purchase are benefits that cover major events such as death, total permanent disability, and critical illness. Then come benefits for hospitalization, service beds, and premium medical services. In addition, when income increases, customers can consider purchasing additional health insurance for medical examination and treatment benefits and hospitalization.
The Smart Finance program is jointly produced by Lao Dong Newspaper and FIDT Joint Stock Company - Investment and Asset Management. The video series is broadcast at 7:00 p.m. every Thursday with the participation of leading prestigious financial experts sharing knowledge and skills in personal financial management and investment with readers/viewers!
See more articles from the Smart Finance program here.
Source
Comment (0)