Among the most popular life insurance products today, investment insurance products stand out with a combination of protection, savings and investment. Should you buy investment insurance?
Investment insurance, also known as investment-linked insurance, is a product that has appeared for a long time but is still quite new to many people. Especially, this is a product with a big difference compared to traditional life insurance products before, so many people wonder whether to buy investment insurance.
To get the right answer, you should better understand the premiums and insurance benefits of investment insurance products, because these are also the two factors that participants are most interested in.
Premium of investment-linked insurance
The premium of the investment-linked insurance product is divided into two separate parts, one part is insurance, the other part is investment. Therefore, in an insurance contract, there will be separate provisions and terms about each insurance premium. There are 3 types of insurance premiums you need to pay attention to: basic premium, supplementary premium and premium premium.
The basic premium is the premium that the participant pays for the main life insurance product and is allocated to the basic account for the insurance portion.
The supplementary premium is the fee that the participant pays for the supplementary insurance product and is also for the insurance part.
Extra premium is a fee that the participant pays in addition to the basic premium and the supplementary premium. This is a fee for the investment part, so policyholders need to understand the regulations on paying additional premiums for each product of the investment-linked insurance line.
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Insurance benefits of investment-linked insurance
Similar to the premium, the benefits of investment-linked insurance are also separated into two parts, one is risk insurance and the other is investment insurance.
Risk insurance benefits
Insurance benefits in case of death: If the insured dies unfortunately, the insurance company pays according to the insured amount or policy account value at the time of settlement of death insurance benefits, depending on the product specification.
The right to participate in complementary products to enjoy increased protection and health care benefits such as inpatient, outpatient, dental, maternity or critical illness insurance, accident, injury, exemption pay fees…
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With unit-linked insurance: Participants have the option to invest premiums in unit-linked funds established by insurers, enjoy all investment results and bear all investment risks. from selected unit-linked funds in proportion to the invested premium.
With universal life insurance: Participants enjoy benefits from the investment results of universal life fund but not lower than the minimum committed interest rate as stipulated in the insurance contract.
Should you buy investment insurance?
Through this, it can be seen that investment-linked insurance is the most obvious combination of protection, savings and investment. Accordingly, participants are protected with the highest face value, and at the same time have the flexibility to invest according to their personal financial situation and desire to build assets in the future. Especially young people should buy investment insurance to be both insured and profitable investment comfortably and save time and effort.