Life insurance is a contract between the policyholder and the insurance company in which the insurance company undertakes to pay a (pre-specified) beneficiary a sum (benefit), upon death. of an insured occurs (usually the policyholder). Depending on the contract, payment may also be made when other events such as terminal illness or critical illness occur. Policyholders typically pay premiums periodically or once. Other expenses, such as funeral expenses, may also be included in the beneficiary benefits.
Life insurance is a legal contract, and its terms describe the limitations of covered events. Specific exclusions are often written into the policy to limit the insurer's liability; Common examples are requests related to suicide, fraud, war, riots, and civil chaos.
Modern life insurance shares some similarities with the wealth management industry and life insurers have diversified their products into retirement products such as annual payments.
Contracts based on life insurance tend to fall into two main categories:
Protection: designed to provide a benefit, usually a one-time payment, in the event of an event. Another popular form that has become more popular over the years in terms of protective policy design is term insurance.
Investment policies: The main objective of these insurances is to facilitate the growth of capital by means of a regular or single premium. Common forms (in the US) are whole life, universal life, and variable life insurance.
Life insurance is not a dry financial term related to obligations and benefits, but hidden deep in it is the role of accompanying through ups and downs, providing motivation for participants to stay happy. life, so that future plans do not deviate from the intended. Understanding the meaning and importance of life insurance is how we find the perfect solution to complete life.
THE ROLE AND MEANING OF LIFE INSURANCE:
Financial Protection, Complete Peace of Mind
When we are young, we often save money for purposes such as shopping, traveling, doing business, getting married, or having children in the future. However, when unexpected events occur, you are forced to use the accumulated money to solve your financial burden and stabilize your life. Therefore, savings in many ways can disappear in a short time.
At this time, participating in life insurance is the best solution to maintain financial resources against the risk of accident, critical illness, cancer, death, or total permanent disability. Not only that, life insurance also supports timely premium payment in case the participant encounters an accident. Thereby replacing the source of lost income, helping those left behind to quickly overcome the loss and move on to a better life.
A Solid Start To The Future
The role of life insurance is to provide a safe and effective form of savings. The maturity benefit of the insurance policy can guarantee you an accumulation to fulfill your future plans, such as business investment, sending your children to study abroad, or ensuring a safe retirement age healthy, and do not create family financial pressure.
Economic Balance, Social Stability
Currently, many life insurance companies are constantly recruiting insurance agents, and financial advisors and expanding their operations all around the world. This not only creates stable employment opportunities for employees but also reduces unemployment and ensures social security.
By operating under the model of collecting insurance premiums first and paying insurance benefits later, life insurance helps mobilize idle capital, supporting businesses to make long-term investments in areas such as bonds and stocks. , real estate or deposits, thereby contributing to the development of a stable economy.
Strong Financial Support For Better Healthcare
Life insurance is a practical financial fulcrum, helping participants to be protected and develop their lives in the most positive direction. Accordingly, by enrolling in life insurance early, participants can rest assured of receiving medical treatment at high-class medical facilities, with modern treatment methods and a team of highly specialized doctors.
Furthermore, life insurance prepares you financially for a healthy middle age as well as a strong step forward in your child's educational plans. When each individual in the community is taken care of in terms of health - and finance, the risks and losses of the society are minimized, thereby ensuring a good life for each participant.
Making The Majority Over The Few, "All For One"
In addition to protecting life when unexpected risks occur, life insurance also shares risks in the community by taking the majority to offset the few. This helps to compensate for the loss of the less fortunate, creating conditions for each individual to be confident in living happily, and pursuing big dreams and ambitions in the future.
Action For Love
Do you know to protect good values from health, family, and future, what is the decisive factor? It is a long-term financial source accumulated by participating in life insurance.
Understand the meaning of life insurance not as a financial backup plan before the death of a person. Instead, insurance shows love and responsibility to their loved ones, helping each family member continue to live, enjoy health, a stable future, and a stable life.
Safe and Effective Investment Solutions
To be firm on each step, we need to be proactive and flexible in financial planning. However, are you confident with your financial plan?
In the past few years, many young people have chosen to participate in investment-linked life insurance to confidently build effective financial solutions. With these products, the meaning of life insurance does not stop at the ability to protect but also provides the opportunity to increase the customer's assets safely.
Above are the correct answers about the meaning and role of life insurance. In general, the importance of life insurance cannot be denied to participants and the social community. Thanks to the meaningful message that insurance brings, many people have changed their views and moved towards a more positive life.
Get life insurance when you don't need it so that when you need it most, you can overcome all events and live a stable life!
To understand this issue clearly, let's find out the nature of life insurance to have a more comprehensive view.
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