Life insurance serves as a protection if the insured dies. For example, if I was insured by an insurance product and die tomorrow, then the insurance companies will provide insurance money to people who I left behind.The purpose is to take life insurance to cover the potential loss of income. If I as the backbone of the family died, the family I leave behind will lose sources of income. If I follow the life insurance program, so that my family would leave the insurance money that can be used as a substitute for the lost revenue, at least for a while.
Actually the rule choosing life insurance products are not much different from choosing another product:
* No purchase life insurance if not required; and
* If you need life insurance, buy life insurance that provides adequate protection.
From my brief survey to several friends and family members, virtually none of them are taking life insurance in accordance with the rules above. Most buying life insurance when not needed, and not take life insurance with a sufficient sum assured if needed.
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