Financial Needs Analysis is an assessment that features a series of questions to help you understand what kind of life insurance products are suitable for you.
Before conducting a Financial Needs Analysis, below are some essential Q&As for you to understand more about life insurance.
What are the Benefit Terms on Life Insurance?
You have three basic choices to make about the policy’s length. You can pick protection that lasts your entire lifetime (called whole of life) or for a fixed benefit term such as 10, 15 or 20 years, or at a certain age (e.g. age 100 or age 65).
Do I have Flexibility in How I Pay Premiums and Receive Payouts?
Many life insurance products have a savings element which offers different levels of flexibility in how you pay premiums and when payouts are made. They also differ in the type of payouts such as maturity benefit, annual bonus and annual dividend when the policy matures. There are also guaranteed and non-guaranteed payouts.
Why Should I Take Out a Life Insurance Policy with Payouts?
Life insurance with regular payouts can complement your investment portfolio. Some investors like insurance plans with savings element to help them achieve a specific financial goal – such as accumulating savings for a property or retirement.
Which One Is Right for Me?
Life insurance products are designed for a wide spectrum of customers with plans to match different financial goals and coverage needs. From those starting out on the career and family ladder to those nearing retirement, plus everyone in between.
It is suggested that you conduct Financial Needs Analysis to find out which product is right for you.