01 Feb 2019 | Edukatips

Why We Should Have A Life Insurance Early

Why should you have life insurance? Life insurance is like protection from unpredictable things that may happen. For example, if you get a calamity it forces you to use your whole savings, even if you have to sell your assets to cover unpredictable expenses. You do not have to do all that if you have life insurance.

Why is Life Insurance Important? Here are the reasons:

  1. Insurance as coverage for the family if the policyholder is head of the family.
  2. To have life insurance is an anticipatory act. 
  3. To have a guarantee for children’s education/future as it feels just like saving money.
  4. As an income substitution to the bereaved family.
  5. To protect the family from the risk of debt.
  6. To anticipate the potential coming risks, like when the policyholder is sick, accident and total disability because of the accident/adversity, and even the risk of old age so the policyholder will not be a burden for the family.
  7. To be a safe and consistent asset in managing long-term financial planning, etc.

What Should You Do Before Choosing Life Insurance?

  1. Determine your life insurance’s coverage purpose from the start, because there are many uses and benefits. From the family living expenses protection, children's education funds, hospital fees, etc.
  2. Calculate the sum insured. For example, if you want to protect your family's income for a certain period of time, the sum insured must be equal to the total cost of living for the family for several years according to the plan. For BCA Life, you can see it directly here.
  3. Synchronize your life insurance budget with your financial condition. After knowing the sum insured amount, budget the amount of insurance premiums you can meet.

Tips On Choosing A Life Insurance

  1. Do not get tempted by certain insurance product offers.
  2. Always pay attention to the sum assured insured as you are buying an insurance product, not an investment.
  3. Adjust the sum insured to the risk you want to cover.