4 Customer Mistakes When Buying Life Insurance #2 - CyroTalk.org
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Wednesday, August 1, 2018

4 Customer Mistakes When Buying Life Insurance #2

2. Considering insurance as an investment

Regarding insurance, one thing you need to always remember is that insurance is a fee. Insurance is not an investment where you can expect large returns someday.

In contrast, insurance is a cost because in principle insurance is a scheme for transferring one's risk to a third party, namely an insurance company.

The insurance company will pay a sum of compensation or sum insured when there is a risk to the insured or policyholder.

Policyholders must pay a premium as a fee for transferring the risk to the insurance company.

Life insurance cannot prevent death. However, life insurance can ease the financial burden of family members left behind when the breadwinner dies.

One considers insurance as an investment product can lead you to choose a life insurance product that is not right. Like buying life insurance combined with investment. As a result the premium is quite expensive, while the sum insured is relatively small. So, be smart in choosing the best.

3. Incorrectly assign the insured to the policy

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