Life insurance is not for everyone

Not everyone can get life insurance. Although it does not discriminate between young and old, social class, or income level, there are diseases that are not covered by life insurance or professions that are not included in the insured group.

After all, life insurance is only for people who really need and meet the conditions to participate. What are the specific needs and conditions? Let’s find out with Austin Insurance Services!

What needs are covered by insurance?

In fact, life insurance has many product packages designed with different characteristics and benefits. Therefore, it is necessary to determine the priority needs to choose the right insurance types.

The need to take care of your health and your loved ones

Life insurance provides the insured and their families with optimal health care benefits, helping to reduce the financial burden caused by illness, death, and injury. Specifically, if an insured event occurs, the insurance company will support hospital fees, voluntary treatment costs, treatment in modern domestic and foreign medical systems, treatment of incurable diseases that even unsatisfactory health insurance.

Medium and long-term saving needs

During the time of participating in life insurance, we can form the habit of saving to build an effective medium and long-term accumulation plan, making all future plans well.

Even in the event of death or total permanent disability, it is not possible to maintain the periodic premium payment for the remaining time in the policy, the insurer will still pay the insured amount to the participant. This money will continue to fulfill family goals such as sending children to university, studying abroad, starting a business, getting married, or taking care of elderly parents.

The need to secure financial plans for the future

To live worry-free, we must prepare a financial plan as soon as possible. Let life insurance – financial butler help you build a solid financial foundation!

At the maturity of the insurance policy, the participant receives the insured amount and uses it for a variety of financial plans.

In case participants lose their ability to work, life insurance is an additional source of income or can be used as capital for business and career change.

If you’re in your 20’s or 30’s and single, buying life insurance may sound like an expense you don’t need now. But it could be a smart move. Senior Personal Finance Correspondent Sharon Epperson explains how buying a policy when you’re young could pay off. CNBC has a video on why you should buy life insurance in your 20s

Demand for risk insurance combined with profitable investment

To be both protected against risks and effectively increase your assets, invest boldly today by joining life insurance. The value of insurance lies in its flexibility, not restricting the participants’ finances within a certain framework.

Risk insurance combined with profitable investment
Risk insurance combined with profitable investment

If your income is not stable, you can choose to participate in insurance with a moderate amount of insurance and in accordance with your financial ability or ability to save monthly. In addition, you can also register to pay seasonal premiums to ensure the ability to maintain insurance policies, pay long-term premiums, and not affect insurance benefits when terminating the insurance policy early. for not paying correctly and enough insurance premiums.

If your income is high, you can join the insurance with a larger amount, or combine participating in many add-on packages to expand the coverage.

Conditions to participate in life insurance need to know

Many people just wonder whether to buy life insurance or not, but do not really understand that, to buy insurance, you must meet the following 4 conditions:

Health

Health is a condition that determines whether or not you can participate in life insurance. This is also why participants should honestly disclose all health information, including medical history or a previous medical examination.

What diseases are not allowed to buy life insurance?

Usually, the diseases on the list of not participating and paying benefits are serious diseases that are difficult to treat, such as:

  • Severe dementia.
  • Cancer.
  • Heart attack.
  • CKD.
  • Serious traumatic brain injury.
  • Stroke (Cerebral Vascular Accident).
  • End-stage terminal illness…

For patients with cancer or at risk of cancer, learn about cancer insurance or critical illness insurance plans.

If the participant is sick, can the application be reviewed?

Essentially, the consultant is not the one reviewing your claim. Instead, it must be sent to the company for evaluation, especially in cases with a history of the disease. Based on the health status of the participant, the insurer makes one of the following four decisions:

Allow participation in insurance with standard premium: If the participant suffers from diseases but not diseases excluded in life insurance, and meets the prescribed age, occupation, and financial conditions, he/she can buy life insurance, with a reasonable amount and good coverage.

Delayed application processing time: In case of illness requiring treatment or follow-up as prescribed by a doctor, the insurance company applies a policy of delaying the approval of the participant’s insurance claim. family. The delay period lasts from 0 to 12 months. If during or after the suspension period, your health improves and there is no recurrence of the disease, at this time, you can buy insurance.

Covered but not entitled to benefits: You can buy life insurance. But, during the treatment of an existing medical condition or treatment of a complication related to an excluded disease group, the benefit is not paid to the participant.

Refusal to participate in insurance: If you suffer from diseases that cannot be purchased for life insurance, the insurance company has the right to refuse to participate, without going through the evaluation step.

Thus, if you are not on the list of diseases that life insurance does not cover, you have the right to buy insurance, even if you already have an illness.

Age

The appropriate age to participate in life insurance is from 0 months old to 65 years old. Some products even allow children under the age of 0 (ie while in the womb) to participate.

Investment in youth, leisure in old age. This is one of the reasons you should get life insurance early. Best in your 20s or 30s, when the body is healthy and supple. If you wait, health problems make you ineligible to buy a satisfactory insurance plan. Even if your health is stable, but with advanced age, the premium can be much higher.

The age chased away insurance. Consider buying insurance at a young age to firmly plan for the future!

Job

Depending on each insurance company, some professions such as divers, pilots, criminal police, fire prevention, and fighting… are not eligible for insurance due to their high risk of accidents and diseases. job.

In addition, if the participant is a driver (or a job related to transportation by motorbike), soldiers and police will often pay higher insurance premiums than people in other occupations.

Therefore, you need to accurately declare your occupation so that insurance companies can see if you are eligible for insurance, or if so, how much the exact fee is.

Finance

Finance is a condition for each person to choose an insurance package that suits their needs and interests. The advice is not to try to pay the desired premium, consider the current economic situation, to determine a reasonable insurance premium, to avoid a situation where you cannot maintain a long-term contract.

If your income is stable, take out 10% – 15% of your income to join life insurance.

If your income is low or unstable, choose a flexible premium life insurance plan (increase/decrease in annual premium).

In summary, to participate in life insurance, in addition to determining current needs, participants need to ensure that they do not have diseases excluded in life insurance, as well as meet occupational, age, and financial conditions. main related.

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