Why is Insurance Important?
Understanding the benefits and types available
![if IE]> <![endif]>
Nothing is more important than your life and your ability to earn a living. Therefore, it is sensible to seek insurance coverage for the most valuable of asset – you! As you go through life, finding a partner, raising a family, and taking care of aged parents, the need for insurance grows. That is because insurance provides a financial safety net for your loved ones that helps you take care of yourself and those you love when it is needed the most.
What is Insurance?
As a general concept, insurance is simple and can be explained in many ways. While the most basic insurance definition is an arrangement with a company to have guaranteed compensation for financial losses due to illness or untimely death. Some insurance policies, such as: https://www.metlife.com.bd/solutions/savings-investments/ also offer living benefits that allow you to access your funds when a qualifying life event occurs or as income in retirement. The policyholder typically pays an a fee, known as a premium, to the insurance company in exchange for protection from specified risks. This fee can typically be paid in different frequencies: annually, semi-annually, quarterly, or monthly , according to the policyholder’s needs. Policies that offer a living benefit, such as MetLife’s: https://www.metlife.com.bd/solutions/savings-investments/sdps/ call for a one-time premium payment. The premium amount is based on a variety of factors, including your age, gender, medical history, as well as the term and value of insurance you intend to purchase.
How do insurance benefits work?
The financial loss from the unfortunate death of the sole earner in a household can be covered by an insurance plan. The surviving family members can use the insurance payout to repay home loans or other debts and also help you cover your child's future expenses. Some insurance plans also enable long-term capital preservation that provides regular income to meet your needs during retirement. As a result, insurance presents many exciting opportunities for Bangladeshis who want to create a safety net and financial plan for the future.
How much insurance do you need?
Part of choosing an insurance policy is determining how much money your dependents will need. However, a valid question to ask is: how much insurance coverage is required? There are various ways to ascertain this number; however, the general thumb rule of thumb is to have a life cover of at least 10 times your current annual income. The intricacies of individual insurance plans, and determining which policies are the best fit for your needs, can be overwhelming. To get a sense of the options available, here is a breakdown of the plans of different types of insurance in Bangladesh that you can purchase.
What types of insurances are available?
Life is full of uncertainties, which makes it very difficult to make decisions about a future that is yet to be realized. Insurance empowers you to plan for an uncertain future with confidence. You can never be too young to buy insurance and may even pay lower premiums the younger you are when you purchase the policy. Even a small policy offers the assurance that your loved ones will be protected in difficult times and be able to continue paying off debts, keep up with ongoing living expenses, and fund higher education for your children. Having the right insurance coverage eliminates the need to think about finances when times are hard so that you can focus on what matters.
© 2023 MetLife, Inc. All Rights Reserved.