It was a life-changing experience for Mary. And it's an experience she’s made sure her own family would never have to endure. I bought life insurance so that my family wouldn’t have to worry if something would happen to me. I was a single mom with kids 7 and 9. I bought more when I got remarried.
We (she and her husband) both bought additional insurance so that when one of us dies, the family wouldn’t have to move or change lifestyles. They also have different types of life insurance that provides different types of coverage.And according to experts, choosing what type of life insurance product to buy is complex and depends on many factors, including age, occupation and family situation.
That’s why it's very difficult for clients to go online and buy a product and know it’s the right product
A professional can guide people through the maze of insurance plans. There are so many different types because of all the riders, and additional benefits. It’s different than it was 20 years ago. There have been a lot of innovational life insurance products.
One interesting and really not surprising statistic is that about 97 percent of term policies never end up paying a death benefit. They're a temporary protection and a temporary solution. The reality is that they don’t end up paying a death claim because the insurance has expired or premiums are so high they’re dropped. But for young families they make a lot of sense because they can get a significant amount of coverage for a small amount of money.
Life insurance was once thought of as simply a financial vehicle that provided beneficiaries with a monetary benefit on the death of the policy holder. But that has changed. Although life insurance still provides that all-important death benefit, it also can do much more. Besides offering financial protection to loved ones, business partners and mortgage companies, life insurance also can be a savings plan, or an annuity.
It’s all about choosing the right plan, not just once, but as life situations make insurance needs change, according to insurance professionals and financial advisers, who all advocate using their professional advice to determine the kind and type of insurance needed.
Agents serve as faithful guides
People who try to choose insurance online or without expert help often "can be overlooking things they aren’t aware of. As people’s needs change, it changes what insurance they need. Younger people buy term policies not thinking about the expiration date. They’re useful for a certain period of time like when you have a mortgage. But when they get in their 70s and 80s the term policies have expired.
The 'owing someone' refers to a business reason for owning life insurance, and normally is related to a loan or financing of some kind. For most Malaysian - buying life insurance is related to 'loving someone. It revolves around the desire to provide for loved ones in the event that they are no longer here to provide for them themselves.
Once you determine the amount of life insurance you need, you are now ready to determine 'How much will it cost. If a policy is unaffordable, it is of no value, since it will undoubtedly lapse over time.
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