While I was going through our own portfolio to set up life insurance in Hong Kong for us as a family, I realized how little it’s spoken about and my husband wasn’t crystal clear on what it is and why we need it. We have a life insurance back in Ireland to mortgage a home but we’ve never looked at life insurance here before and now with a small family that we want to expand, it was the perfect time to review our legacy.
So here is my personal experience and share on why, what and how.
Why take life insurance? 3 simple reasons.
- No one knows what may happen.
2. It provides peace of mind.
3. It leaves a legacy for your dependents.
While no amount of money can ever replace the loss of a loved one, leaving something behind eases the financial burdens that may come with funeral costs and debts and loans you may leave behind.
What types are there? LOTS but let’s keep it really simple.
Term Life:
Affordable
Lasts 10, 20, 30 years
No returns or interests
ex: I pay for 30 years to be covered for 1Mill in case I die in that time. If I don’t die, great and I don’t get anything back.
Term Life Return On Premium:
Affordable
Lasts 20, 25, 20 years
What you put in, you get back at the end.
ex: I pay for 25 years to be covered for 1 Mill in case I die in that time. If I don’t die, great AND I get every dollar back that I put in.
Whole Life Insurance:
More expensive
You pay for a set number of years anywhere from 3 years to age 80
You are covered until you are 100 years old
You are paid dividends (guaranteed cash value + non guaranteed dividends)
ex: I pay for 20 years to be covered for 1Mill from now until I die. When I die, my daughter will be paid 1Mill plus any dividends earned over the years. I can also withdraw the dividends should I need it, if I fall on hard times during my life.
Critical Illness:
Paying ahead for any future illnesses you may get
Insurers pay you a lump sum upon falling ill
Consider it a form of covering your living expenses for 2 or 3 years
ex: I pay for 20 years to be covered for $200,000 and in that time or after I fall ill, the insurer will pay me a lump sum of $200,000.
Where does this leave us as a family? I am in my early 30s and my husband late 30s. What’s most important to us is to have the cover in the event that either one of us passes away in the next 30 years. So we have budgeted to take a term life return on premium for me and a straight up term life for him. Premiums are calculated by age and health. In general, if you’re young and healthy and working, this is the perfect time to start a policy in planning for your future.
本文內容僅供參考，並不構成投資建議或對任何投資產品的邀約、招攬或建議。請讀者自行判斷並諮詢專業意見。
852Fin平台上之任何資訊（「852Fin資訊」），包括但不限於產品比較、產品評分、網誌文章等，僅供一般教育及參考用途，並不構成或意圖構成任何受監管建議、信託、移民、保險、金融、投資或其他專業建議、推薦、核准、認可、邀約、銷售保險、信託、移民、金融或投資產品。
852FIN提醒讀者，本文／本影片所載內容主要來自網上公開資料，並不構成任何專業意見。如有關於產品或服務的具體問題，讀者應諮詢專業人士的意見。
852Fin資訊並沒有考慮閣下之個人需要，閱覽有關資料亦不應被視為正在進行個人合適性評估，亦不足以構成任何購買產品／服務決定的依據。
852FIN及筆欄作者對因文章所載或漏載的資料而引致的任何損失或損害，概不負責。
購買任何產品或服務，在進行有關決定前，閣下應以向閣下提供產品及服務公司提供的資料為準，自己進行研究，及/或尋求專業持牌人士索取獨立及專業意見。852Fin資訊是以最大努力從不同渠道收集、驗證、更新而成。852Fin及關連人士、代理、董事、職員、員工將不會就有關資料引致的索償或損失負上任何責任。852Fin亦概不保證或擔保有關資料之準確性、完整性和適時性。
關於這個post的討論