Yula.la News

Have you considered buying insurance?

Most of us are working hard to ensure we have financial stability for ourselves and our families. If anything happens to us, it’s important to know that we are protected against accidents and unexpected events that could negatively affect our finances. Insurance is that shield, that protection for hard-worked income, assets such as a car or house, and most importantly our health and life.

Buying insurance can be tricky, especially because there are loads of different types of insurance to choose from such as a car, home, health, travel, and life insurance. In this article, we will focus on life insurance.

Why Consider Life Insurance:

Do you have debt and in the process of paying off loans? What will happen to that debt if you pass away? That debt will be transferred to your family or children. If you’re married, it will usually go to the spouse. If you are the main financial provider for the family, sudden death can really cause a strain on the family who would be responsible for that debt. Life insurance can help alleviate debt.

When you purchase life insurance you will be the policyholder responsible for the contract and payments. You will be responsible for paying a premium to the insurer to receive benefits in case of death. Although many of us don’t think this far ahead, it’s good to consider life insurance when you have a family that you’re providing for. Life insurance provides financial security to loved ones after death.  

How Life Insurance Works:

Life insurance works by paying a premium or “an amount which the life assured needs to pay to the insurer in exchange for the insurance benefit.” The policyholder will have an agreed amount of time and payment plan before receiving the sum assured – or promised a sum of money the insurer will payout.

A life insurance policy assures one’s life and helps transfer financial risks. The insurer will give a sum of money, based on your premium, to cover the costs after death such as funerals, living expenses for the family, and provide the sum paid to your agreed beneficiaries, which is the person or people who will receive the claimed amount after death.

It’s important to make regular payments in order to receive the benefits, otherwise, your contract can become invalid or terminated and the policyholder will need to file for reinstatement and pay off any missed payments for the premium.

Lastly, not all deaths or accidents are covered by life insurance. There are a few exclusions that insurance companies will not provide coverage for.

The common four exclusions include the following:

1.        Adventure Sports Activities: There is a fine line for what can be termed as dangerous and can change amongst different providers. This can include activities in which one purposely puts their life at risk such as sky diving, rock climbing, car racing, bungee jumping, and more. Note some insurance companies will cover these types of risks but at a higher premium cost.

2.        Illegal Drugs or Abuse of Medicine: If a policyholder dies from abuse of drugs, an overdose of medicine, taking unprescribed medicine that results in death the insurance company can reject the claim.

3.        Suicide or self-injury:  insurance claims money and benefits will not be paid if the policyholder commits suicide within one year of the policy effective date period. 

4.        Smoking or alcohol abuse: If the policyholder is a smoker or drinker, it is counted as a life risk choice. If the cause of death is related to smoking or a disease that is caused by smoking the insurance claim can be rejected or the premium will be significantly higher.

Have peace of mind when you are covered with life insurance. We know it isn’t always the most ideal expense to think about, but it is better to be safe and ensure loved ones are financially protected in case of an unexpected death. Considering insurance? We can connect you with life, health, home, car, and more insurance providers. Contact us here to get in touch. Check out our article about finding the right insurance for you with an insurance broker here. 

Companies in Laos to Consider:

·      Prudential Life Insurance

·      Allianz General Life Insurance

·      Forte-Toko Assurance

·      APA Insurance

Insurance Broker:

·      KX Insurance Broker