What is life insurance? Life insurance are products designed to provide protection against the risk of financial loss. Ask yourself these 5 questions before buying a life insurance policy!

1. Dependant. How many and who are they? A dependant is a person who relies on another for financial support. They can be your parents or your children, who will be benefit from the life insurance policy.
2. Premium. How much premium are you willing to pay annually to enjoy the benefit of the plan? You must take into account your budget, just to make sure you set aside sufficient funds to buy insurance policies. As the policy owner, you have the right to select the frequency and mode of premium payment.
3. Time period of the plan. Are you looking for a short-term insurance protection or for your entire life? Term insurance only covers you for a fixed term, while whole life insurance offers lifetime coverage.
4. Cash value. Do you expect some cash value at the end of the insurance policy? If yes, you should consider a whole life insurance or an endowment policy that is able to acquire cash value at the end of the fixed maturity date if the policy owner survives at maturity. Endowment policies require higher premium payment as it is likely to build up cash value more quickly compared to the whole life policy.
5. Supplementary benefit aka rider. The policy owner has the option to add one or more rider attached to a basic insurance policy. Common riders are premium rider, critical illness rider, total and permanent disability rider, accidental death benefit rider and hospital cash benefit rider. These riders can be added at any time to meet your needs, or to be removed if the need no longer exist.

Life insurance policy provides protection against the risk of financial loss. Besides the questions above, explore the features and benefits of the insurance product and understand the limitations and exclusions set out in the policy.

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