Hong Kong Life Insurance Policy: How to Choose the right one?

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How to Choose the Best Life Insurance Policy?
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About Rosewood Phnom Penh
Life insurance is a policy that, in return for
periodic premiums, pays out upon your death to
beneficiaries you have selected. The main
objective of life insurance is to ensure that
your dependents, such as your spouse, children
and ageing relatives, are financially comfortable
in the unfortunate event of your passing away.
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About Rosewood Phnom Penh
In addition to this main purpose, it is also
sometimes required as part of an arrangement to
take out a loan or a mortgage, to ensure that the
lender is repaid in case the borrower dies. In
some policies, the pay-out can also occur in
cases of severe illness and disability, which is
more characteristic of critical illness insurance
life. Life insurance plans can sometimes provide
a mix of investment and retirement elements so
while they do pay out upon death, like normal
life insurance, some of the funds can also be
withdrawn.
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Why is life insurance so important?
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About Rosewood Phnom Penh
Life insurance is regarded by specialists as one
of the pillars of personal financial and
retirement planning. This is because, except for
the very rich, even if you have a good income and
are saving carefully according to a retirement
plan, if you pass away before you have had the
opportunity to build up sufficient savings, your
dependents are likely to be financially
vulnerable. This is simply because, even with the
trend of professionals marrying and having
children later, many of us do so before
accumulating most of our savings, or even before
reaching our peak earning power.
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About Rosewood Phnom Penh
In addition to this main purpose, it is also
sometimes required as part of an arrangement to
take out a loan or a mortgage, to ensure that the
lender is repaid in case the borrower dies. In
some policies, the pay-out can also occur in
cases of severe illness and disability, which is
more characteristic of critical illness insurance
life. Life insurance plans can sometimes provide
a mix of investment and retirement elements so
while they do pay out upon death, like normal
life insurance, some of the funds can also be
withdrawn.
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Am I eligible?
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About Rosewood Phnom Penh
Life insurance is appropriate for anybody who has
dependents who would face a financial setback if
the policyholder passed away. Most commonly, that
is portrayed as above the leading income-earner
in a newly married couple with young children.
But it would also apply to the stay-at-home
spouse, in that the working spouse would have to
hire help and, if working overseas, might choose
to move back so the children can be close to the
family. Alternatively, it could apply to those
caring for an elderly relative, even if they,
themselves, have no children and are retired.
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About Rosewood Phnom Penh
If you have dependents, the lower your income and
net worth, the more seriously you should consider
life-insurance. Thats because, even though it
will mean a larger cut of your income, its more
likely that your dependents would be financially
vulnerable if you passed away. Life insurance is
available in varying amounts, so some insurance
is accessible to virtually anyone with an income,
regardless of how much. The amount of life
insurance you can take out may be limited by your
income, though. It may not be possible to take
out a policy that promises to pay more than you
could be expected to earn in your lifetime, for
instance.
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Life insurance is a key part of personal
financial security for anybody with dependents.
It can be bought for specific periods (term) or
for an entire life-time (whole or universal), in
which case it also functions as an investment
product. The amount of insurance you need and
which type of policy is most appropriate for you
depends on your overall financial situation and
plan. Because of this, and because insurance
products can be very complex, it is recommended
you consult your financial advisor on what is
ideal for you.
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