Buy insurance with investment or buy separately. Who is suitable for which type? Buyers should be careful about what unit link type.
Nowadays, buying insurance together with investment is more prevalent in Thailand. Let’s explore and get to know the parts of this insurance in order to gain a thorough understanding before making a purchase.
If you ask who is suitable for this investment insurance must look at the goals and status that that person how much burden but in fact, the distinctiveness of this investment-included insurance scheme it is a saving, insurance and investment in one. It is like a mellow 3 in 1 coffee because there are many advantages. But there are cautions before making a purchase as well.
Advantages that are useful for insurance plus investments:
- Get a high sum insured from the start of saving Suitable for family heads or people with various burdens Because it is the only model that has a high sum insured of 280 times or 300 times in some companies and certain ages. Compared to insurance premiums sent annually
- High flexibility in the policy means that in the future, in the event of an emergency, the premium cannot be paid in certain periods. Can use the right to take a break or Premium Holiday without having to pay interest like a general life insurance policy
- Monthly savings with annual premiums Every salaryman can start saving, investing and also getting life insurance capital.
- The sum of money can be transformed into emergency money in the future. As for the account value that increases each year from both returns on investment. If a serious disease or want to use emergency funds This part of Account Value can be withdrawn and still receive life protection if the remaining Account Value is still sufficient to pay the monthly expenses.
- In retirement, you can gradually withdraw your money. For example, if saving 5000 baht per month, when we retire, we can withdraw 10,000 baht per month, etc.
- Additional contracts, health, critical illness, or disability, UDR, can be attached to the investment-linked insurance form. The advantage is that you can choose the number of years you want to pay premiums. and choose the number of years that you want to be protected, such as saving money for 15 years, but being able to protect life, health, critical illness and disability until the age of 70, etc.
- In many places, there is a bonus if you save continuously every month without missing. resulting in another bonus from investing in investment insurance
- Able to adopt investment insurance as one of the risk management according to the financial plan that makes customers in terms of protection and retirement plans in another dimension The money accumulated in the investment after deducting various expenses. It can be converted into lump sums in various forms at the time of greatest need. For example, we may choose to withdraw money from Account Value as a lump sum if we have a serious illness for treatment. and keep another part of the money to be enough to pay the various expenses next month which, if later on death, still receives the same life insurance, forwarded to the beneficiary according to the insured’s intention It is a cash flow asset that performs a variety of functions.
- Able to bring expenses in various parts to reduce tax, such as premium charge, insurance fee Administrative fees and monthly policy allocation every year throughout the holding of life insurance contracts with investment which if we stop paying premiums But there are still costs in this section incurred continuously. We can take this expense as a tax deduction in the future. without having to pay premiums anymore
- You can choose the number of years you want to pay premiums. and choose the number of years that you want to protect as appropriate and necessary in each stage of life In the future if the financial goals are adjusted can be selected according to the changing suitability
- Able to increase or decrease life insurance capital in the future such as in the early years of working During the time of being the head of the family, there will be many burdens, whether it be debts, house debts, car debts, or child scholarships if the unexpected happens. But after another 20 years, these burdens were reduced. graduated from work The head of the family may also want to reduce the amount of life insurance as the burden is reduced. which life insurance combined with investment can do
A suitable person for investment insurance is a person who is starting to work who want to save, insurance, and invest at the same time, and with the advantages that can be gradually saved on a monthly basis without having to pay interest like ordinary life insurance Paying monthly premiums, or perhaps looking at it from another angle, is DCA (Dollar Cost Average) in order to spread the risk in investments consistently and continuously every month, creating discipline in saving. From the advantages that should be the initial life insurance of working people who can respond to all life insurance, saving and investing in some years when financial difficulties arise.
Unable to pay premiums during that period
We also have the right to choose to use the right to stop paying premiums (Premium Holiday) while still receiving the same protection. But have to study carefully in the terms of each company that determines how many years the minimum premium payment in the first period So you can use the right to stop paying this premium. The flexibility of an investment-linked life insurance policy is an option that everyone should be thoroughly researching in order to know the various benefits that one should have.
However, there are many other dimensions and things to be aware of. whether it is a matter of expenses that increase with age The rate of return on investment is uncertain. If the market is volatile and the returns are not as expected How do I need to adjust my investment portfolio? to keep up with the changing market situation and other topics as follows
- Various expenses affect the life insurance plan with investment.
- Unstable returns according to market volatility
- The plan must be adjusted according to the changing market conditions.
- The number of years required for protection may not be as expected.
- If the purchase of additional contracts is attached to UDR, it must be calculated at the rate of expenses for each year. that it will be protected until how many years There may be a risk that the coverage will last for a period of time and the policy account value expires over the age of 70 will make it possible to buy other health insurance. more difficult especially if there is a serious disease or any chronic disease in the past
- Buying insurance together with investments may not be suitable as a retirement plan for all retirement. because of the cost incurred especially when getting older Therefore, the expenses in this section must be taken into account as well.
So in conclusion, should I buy insurance as well as investment or not? or should be purchased separately as life insurance and funds In fact, it must follow the objectives of the purchase and whether there are financial goals. What are you most worried about or worried about? If the head of the family needs high capital life insurance. Investment insurance is also suitable. If you are a businessman with high debt Want to make life insurance to protect debts in the event of an unforeseen It is another option that can generate high cash flow from life insurance capital. or a single person who has the burden of taking care of ageing parents If something happened to me Parents can be difficult. In the early working age, they can choose insurance plus investment as the first life insurance book that can both save and invest insurance and is also considered as a reward for parents’ milk if they die on the way.
Therefore, before deciding to buy life insurance as well as investment Should study carefully the characteristics, advantages, disadvantages, points to be careful to know all the benefits that should be.As an alternative, it should be able to answer various dimensions from a single lump sum of money that is gradually saving monthly. and must be purchased with a life insurance agent who has a valid license to sell
