Getting Your First Life Insurance Policy Is Easier Than You Think! Plus Tips on Choosing the Right One

Getting your first life insurance policy is an essential step in financial planning, just as important as getting whole life insurance. It serves as financial protection for you and your loved ones in case of unexpected events. Life insurance payouts can help ease financial burdens such as medical expenses, debts, or daily living costs, ensuring that those left behind can continue their lives smoothly. However, for those who are just starting their careers and considering their first life insurance policy, the question often arises: which type of life insurance should I buy? Today, we have the answers for you. Let’s find out!

Contents

1. Reasons to get your first life insurance policy

2. Benefits of getting your first life insurance policy

3. How to choose your first life insurance policy

1. Reasons to get your first life insurance policy

Getting your first life insurance policy is like having an umbrella to shield you and your family from financial storms. In times of unexpected events, the insurance benefit can help ease financial burdens and ensure your loved ones can continue their lives smoothly. Here are some key reasons to consider getting your first life insurance policy:

●    Peace of mind: Having life insurance provides peace of mind for you and your family. In case of unforeseen events such as death or critical illness, you can be assured that your loved ones will have financial support.

●    Reduced financial burden: If you are the primary breadwinner, life insurance can help relieve your family’s financial burden in case of your passing, covering expenses such as debts, child-related costs, or medical bills.

●    Future planning: Certain types of life insurance can serve as a financial reserve for retirement or be used for your child’s education, allowing you to plan your future with confidence.

●    Tax deductions: Some life insurance premiums are tax deductible according to legal regulations, helping you save on taxes.

2. Benefits of getting your first life insurance policy

Getting your first life insurance policy lays a strong foundation for financial stability for you and your loved ones, especially in times of increasing uncertainty. Having life insurance provides peace of mind and allows you to plan your future with greater confidence. Here are some benefits you will gain from your first life insurance policy:

●    Life coverage: In the event of an unexpected incident such as death, the insurance payout can help alleviate financial burdens for your family. Beneficiaries can use this lump sum for various needs, such as repaying debts, covering living expenses, or funding their children’s education.

●    Disability coverage: If an accident leads to disability, the insurance payout can help support your medical care and your family’s financial needs.

●    Savings: Some types of life insurance, particularly endowment insurance, can act as a savings tool, ensuring you receive a lump sum at the end of the policy term or in times of need.

●    Investment: Some types of life insurance, such as unit-linked insurance, include an investment component, allowing your money to grow more than traditional savings.

●    Tax deductions: A portion of life insurance premiums can be deducted from taxable income according to legal regulations, helping you save on taxes.

How to choose your first life insurance policy

●    Lower premiums: The younger you are, the lower your life insurance premiums, as the risk of unexpected events is lower.

●    Better saving habits: Regularly paying life insurance premiums helps instill financial discipline and saving habits.

●    Stable future planning: Having life insurance enables you to plan your future securely, whether for retirement, your child’s education, or leaving a legacy for your heirs.

3. How to choose your first life insurance policy

For those starting their first life insurance, it can be confusing to decide which type to choose since there are many options available, each with different coverage and returns. The best type of life insurance for beginners depends on several factors, such as:

●    Budget: How much can you afford to pay for insurance premiums each month?

●    Coverage needs: Do you need specific coverage, such as coverage for death, illness, or disability?

●    Age and status: What is your age and financial situation?

●    Financial goals: What are your financial goals for life insurance? Do you want to use it for savings, future security, or creating a legacy for your heirs?

Types of life insurance popular among beginners

1. Term life insurance:

●    This type of insurance has the most affordable premiums, suitable for those who want the highest coverage for a fixed period.

2. Endowment life insurance:

●    Endowment insurance, in addition to providing life coverage, also allows the accumulated lump sum to be used upon contract maturity, suitable for those looking for both coverage and savings.

3. Unit-linked insurance (universal life insurance):

●    Not only does unit-linked insurance provide life coverage, but it also allows you to invest a portion of the premiums in various funds, enabling potential financial growth, suitable for those who seek both protection and investment opportunities.

Choosing your first life insurance policy is not difficult. You only need to understand your own needs and consult an expert. Getting life insurance is a worthwhile investment for the future, as it provides financial security for you and your family. However, if you are still unsure which life insurance plan to choose, ShieldLife from Muang Thai Life Assurance is here to help ease your worries when the time comes. 

For more information:

☑️ Call Tel. 1766, available 24/7

☑️ Contact life insurance agents or Kasikornbank and Land and Houses Bank branches.

●    Please study the details of coverage, conditions, and risks before deciding to purchase insurance. 

Sources: Retrieved on 13/01/25

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