Accidents and illnesses can happen unexpectedly, leaving us vulnerable to risks. Life insurance is a crucial tool to manage these risks when such events occur. For those who don't have life insurance or are unsure how to buy it, we have a solution to help you plan for life insurance. This will ensure adequate support in the face of unforeseen circumstances.

Before discussing the importance of life insurance, let's look at the potential financial risks associated with accidents and illnesses that can happen unexpectedly.

Accidents and illnesses can lead to expenses.

When we experience an accident or fall ill, we often have to face various expenses depending on the severity of the situation. To avoid borrowing money or sacrificing other expenses, it's a good idea to plan ahead and set aside funds for such emergencies. It's important to note that the cost of treatment can vary greatly, so it's best to save as much as possible to ensure we're prepared for any unexpected healthcare costs.

●        Risk - minor illness, such as losing money for medicine from a pharmacy or wound care costs. Even though it may be a small expense, if it frequently happens in a month when we have little money, it could impact our daily living expenses.

●        Risk - Severe illness, such as hospitalization or surgery costs, are considered relatively high expenses. If we spend a long time in the hospital or need to stay in a private hospital with room rates ranging from thousands to tens of thousands of baht.

●        Risk of organ loss or permanent disability, such as the cost of self-care in life and convenience in life. It is essential to prepare for self-care financially, especially when we cannot take care of ourselves entirely and do not want to rely on others for assistance. This is because we can never predict which unfortunate event may lead to organ damage or permanent disability, and having the necessary funds can help us cope with such situations.

●        Risk - death, such as expenses for the last day or income that needs to be taken care of for the family that is lost. Even though we may not be there on that day, preparing this money for our family is essential to help us feel secure.

From the risks in expenses that we mentioned earlier, everyone should not worry. Having life insurance is one way to help protect against these expense risks.

How does life insurance help protect against expense risks?

When unexpected events occur, from illness to accidents to death, you will receive coverage for medical expenses, income compensation, or payment of compensation in the amount specified in the life insurance contract.

Life insurance not only provides coverage for risks but also offers an array of additional benefits. Here are some inspiring options to consider.

Life insurance is better than risk protection.

●        Deductible for Tax - The health insurance premiums are paid annually, but at most 25,000 baht. When combined with general life insurance premiums or life insurance with savings, it must not exceed 100,000 baht. Health insurance must cover medical treatment for illness and injury, compensate for disabilities and loss of organs, and provide long-term health coverage.

●        Being an inheritance for the family - Life insurance policies provide a unique opportunity to designate our loved ones or organizations that matter most to us as beneficiaries. It's a powerful way to secure their financial future and ensure they are cared for even after we're gone. The money received from a life insurance policy is a testament to our thoughtfulness and care for those we leave behind. It's a way to leave a lasting legacy of love and generosity that will continue to impact the lives of others long after we're gone.

●        Receive lump sum payment, peace of mind for retirement - If we reach the total contract term, we will receive a lump sum payment as specified in the policy, excluding any return of premium and annual dividends received. The lump sum payment will be returned when the insured reaches the specified age, pays the premiums in total, and does not refund the premium during the contract.

Life insurance is a crucial component of a secure future, and there is always time to start planning for it. We offer a comprehensive plan catering to various risks everyone must consider.

Three ways to plan life insurance to support risk management in all aspects

1. Considering the preferred level of protection.

Before purchasing insurance, we must assess our expenses and debt liabilities. For instance, we should consider the cost of our children's education, retirement savings, mortgage payments, car payments, and other similar expenses. It is also essential to review the benefits provided by our workplace, such as group insurance from the company or social security. Suppose we already have some coverage in place. In that case, we need to determine if it is sufficient or to purchase additional insurance to meet our remaining needs. This will help us avoid paying excessive life insurance premiums.

2. Select insurance funds based on the desired level of risk coverage.

Calculating the appropriate life insurance coverage can reduce the risk of being unable to pay life insurance premiums and provide financial security. The method of calculating life insurance coverage can be considered as follows:

●        Consider the monthly expenses of the family and estimate them annually.

●        Consider the remaining income after expenses and assets owned in each year.

●        Calculate the difference between income and expenses to determine the additional money needed for insurance costs.

●        Consider investing at least 3-5 times the amount of money you want to increase per year in insurance capital to give your family a chance to prove themselves.

Choosing the right coverage amount is vital when purchasing life insurance to avoid a high premium burden. Once you have determined the desired coverage amount, calculate the annual premium you must pay. To begin with, you can start with a premium of 10% of your income to see if it's affordable. If your income increases, you can gradually increase the insurance coverage accordingly.

3. Select a financially stable insurance company.

When buying life insurance, we must consider selecting a financially stable insurance company to ensure that the company can manage and generate good returns from the collected life insurance premiums. The company should provide the services of insurance agents, allocate funds to compensate for losses quickly according to the contract or act as a mediator to resolve potential conflicts.

To find the best insurance company, we should thoroughly gather and compare information from several companies. It is essential to consider factors such as financial information, company reputation, operating history, policy coverage, customer service, and various costs.

It is impossible to predict when accidents or illnesses will happen to us. Living a life without planning can increase the risks. In addition, life insurance is a tool that can help cover various risks. Being prepared at all times can provide future peace of mind for your family. However, studying the policy thoroughly and getting the coverage you need is essential. No matter how life insurance helps us manage risks, the right coverage is crucial.