In this form of insurance, the insured will sign the contract and pay the recurring premium for a period agreed in advance with the insurance company. They will be paid a sum of money, as stated in the policy at the end of the insurance period or when a mishap occurs to themselves. This is seen as a financial guarantee that is highly disciplined for many years. It is also the best way to share risks among a large group of people in society.
This article will focus on answering a series of “why” questions related to why buy insurance.
1. Why do over 90% of the population in developed countries participate in insurance?
Insurance helps to overcome the significant risks associated with the income of insurance buyers. It is a means to ensure that unexpected accidents that have serious life consequences will not wipe out a family’s possible income. , you can understand that when you join in insurance, you will need to feel safe.
Insurance is also a form of savings over the long term. If during the agreed period of the contract, the insured regularly pay money, and luckily, without any problems. When you mature, you will still receive a large sum of money, including the principal amount and the Interest earned in recent years. Therefore, it is the main reason why buy insurance for your own and your family as well.
2. Why should you buy insurance for children up to 18 years old?
When parents have decided to join the insurance for their children until the age of 18, the children have received the following benefits:
– To be protected for health and life until the end of the insurance policy. The costs related to hospitalization, injury, death, and so on are all covered by insurance.
– Financial interests are protected during the policy period. When the parents accidentally happened to have an accident, which affected their income, they had insurance to cover the losses due to treatment. Even if the parents of a child are accidentally injured or died, the insurance policy is maintained for free until maturity, and the child still gets the full benefits as usual.
– Receive a large sum of money when you are 18 years old to pay for school and living expenses. That is considered a savings account for a long time that parents spend for them.
So, do you understand why buy insurance for your kids?
3. Why should be the financial breadwinner in the family should join life insurance?
If insurance is not available, it is, unfortunately. If the risks occur to them, the economic situation in the home will seriously decline when the primary source of income is lost. Moreover, the family had to pay for medical treatment in case of injury, serious illness, or even burial in case of death. In contrast, when life insurance is available, the costs of treatment and treatment will be covered by insurance. Moreover, if the insured dies, their relatives will also receive a relatively large pension to sustain their life later.
4. Why should you choose insurance instead of bank savings?
Many people always ask why buy insurance instead of saving money at the bank. Both bank savings and insurance can offer participants a much more significant amount than the principal after the maturity date. However, in terms of interest rates, the bank probably stands out. But the discipline of bank savings is worse than insurance because bank deposits can be withdrawn quickly at any time while insurance premiums must be paid periodically and only withdraw after a specific time.
Also, if you send money to a bank, when sick, the sender will withdraw cash and use it for therapeutic purposes. On the other hand, when having a health problem, the insured will be paid for a medical treatment which may be much larger than the original amount they paid.
5. Why should I join insurance when I have a stable income?
According to my insurance approach, due to strict regulations of life insurance, once enrolled, customers have to pay periodically. If there is a period when the payment is interrupted, their benefits will be severely affected. Therefore, each person needs to calculate their future affordability carefully. And should only join insurance when they are sure to have a long-term and stable income. However, life insurance is not necessarily for high-income people.
Hope that after the post you will know more about why buy insurance which need to feel safe in your life.