Should we buy investment insurance?
Among the most popular life insurance products today, investment insurance products stand out with the combination of protection, savings and investment. So should buy investment insurance?
Investment insurance, also known as investment insurance, is a product that has been around for a long time but is still quite new to many people. Especially, this is a product with a big difference compared to the previous traditional life insurance products, so many people are wondering whether to buy investment insurance. To get an appropriate answer, you should better understand the fees and insurance benefits of investment insurance products, because these are two factors that participants are interested in.
Insurance fee of investment-linked insurance
The premium of an investment-linked insurance product is divided into two separate parts, one is insurance and one is investment. Therefore, in an insurance contract, there will be separate regulations and terms for each premium. There are 3 types of premiums you need to consider: basic insurance, supplementary premium and additional premium.
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The basic premium is the amount paid by the participant for the main life insurance product and is allocated to the basic account for the insurance.
Ancillary premium is the amount that the participant pays for the complementary insurance product and is also for the insurance part.
An additional premium is the amount the participant pays in addition to the basic premium and supplementary premium. This is the fee for the investment, so the insured need to understand the rules of premium payment with each product of the investment-linked insurance line.
Thus, with the additional premium, participants can flexibly pay based on their needs and financial conditions from time to time.
Insurance benefits of investment-linked insurance
Similar to the premium, the benefits of investment-linked insurance are also separated into two parts, one is risk insurance and the other is investment insurance.
Risk insurance benefits
Insurance benefit in case of death: If the insured unfortunately dies, the insurer pays according to the sum insured or the value of the contract account at the time of settling the death benefit, Depending on the rules of each product.
The right to participate in ancillary products to receive increased protection benefits and health care such as inpatient, outpatient, dental, maternity or insurance for serious illness, accident, injury, exemption pay the fee ...
With unit-linked insurance: Participants have the right to choose to invest insurance premiums in the unit-linked funds set up by insurance enterprises, enjoy the entire death outcome and bear all investment risks. from the selected affiliate funds corresponding to the premium invested.
With universal life insurance: Participants are entitled to benefits from the investment fund of the universal life fund but not lower than the minimum committed interest rate as prescribed in the insurance contract.
So should buy investment insurance?
It can be seen that investment-linked insurance is the most obvious combination of protection, savings and investment. Accordingly, participants are protected with the highest par value, and are flexible to invest according to their personal financial situation and desire to build assets in the future. Especially young people should buy investment insurance to be both insured and profitably invested and save time and effort.
With the above detailed information about premiums and insurance benefits, you probably have the best answer for yourself.