What is the Best Life Insurance in 2024? Which Type is the most Suitable and Cost-Effective?

If you're considering getting life insurance in 2024, which type should you choose to best meet your needs and lifestyle? This can be a challenging decision, especially when you're thinking about buying insurance for yourself, your children, your spouse, or your parents. Should you choose an endowment policy or whole life insurance? What's the difference? To find the best life insurance that fits your needs, you need to consider several aspects, as life insurance is an essential tool for reducing future risks. Today, we'll share some useful tips for selecting life insurance that meets everyone's needs. Let's take a look together.

1. Which type of life insurance to meet your needs? 

2. Why do you need a life insurance plan?

3. What types of life insurance are there?

1. Which type of life insurance to meet your needs?

To choose the most valuable and suitable life insurance policy, you need to consider several factors, including the coverage amount, premiums, and whether the coverage meets your needs. So, let's see what you should consider when choosing life insurance. 

1. Age at purchase

The first thing to consider when purchasing life insurance is the age at which you plan to buy it, whether for yourself, your family, or your parents. This helps you understand the terms and plan the premium payments for the chosen age range, ensuring that you get the most value and benefits. For example, if you're just starting to work or are a first jobber, you may already have existing benefits such as company group insurance, social security, etc. At this age, it's crucial to focus on savings and tax deductions. Next is the family-building stage, where planning for the future and ensuring comfort for those left behind becomes important, making whole life insurance appealing. Finally, for those at retirement age, it's about planning to pass on an inheritance to the next generation, often through whole life insurance that provides coverage amount for heirs.

2. Insurance premiums

Another crucial factor to consider is the cost of insurance premiums, which determine if you can afford the payments in the long term. Premiums are subject to age and gender, with older individuals generally facing higher premiums. Therefore, purchasing life insurance at a younger age can help secure lower premiums. It's also essential to choose a policy or plan that you can afford to pay for the entire term, ensuring valuable returns until retirement.

2. Why do you need a life insurance plan?

Having life insurance provides more than just life coverage; it also offers several other benefits. Many people may not initially realize the full range of advantages. So, let's explore why having a life insurance plan is essential.

Provide for your loved ones when you're gone

Life insurance helps ensure that your loved ones are financially secure when you're no longer around. It can provide a lump sum to your spouse, children, or parents, offering a planned future for them and relieving your worries.

A savings tool

Life insurance can also serve as a savings tool. Many people may not know that life insurance can function like an investment, helping you save money for the future through regular premium payments. Different types of life insurance offer various returns, and these savings can be utilized later.

Tax deductions

Life insurance premiums can also provide tax benefits. According to the Revenue Department's guidelines, ordinary life insurance premiums are tax-deductible of up to 100,000 Baht. Annuity insurance premiums are tax-deductible at 15% of income, up to 200,000 Baht per year.

3. What types of life insurance are there? Who are they suitable for?

There are various types of life insurance, each with its own characteristics. To choose the right policy, you need to consider which type best meets your needs. Let's explore the different options.

Term Insurance

Term insurance provides coverage solely for death, paying out to beneficiaries only if the insured passes away within a specified period, such as 1 year, 5 years, or 10 years. If the insured survives the term, no money is returned. However, term insurance premiums are typically lower than other types, making it suitable for those seeking temporary life coverage at a lower cost.

Endowment Insurance

Endowment insurance combines life coverage with savings, offering a mix of protection and financial returns. Policyholders receive a payout when the policy matures, and the coverage period can range from 5, 10, 20 years, or up to age 60. The return that is paid to the insured in the event of survival will have a specific time period when we purchase the policy.

Endowment insurance is ideal for those looking to save money while also receiving life coverage and potential returns for future use or retirement.

Whole Life Insurance

Whole life insurance is a policy that provides long-term life coverage. In the event of an unforeseen circumstance, the beneficiaries will receive a lump sum payment. The premium payments are made over a specified period, such as 5, 10, 15, or 20 years, but the coverage lasts until the policyholder reaches the age of 90-99 years (depending on the policy). The benefit is paid out upon the insured's death during the term or at the end of the contract if the insured is still alive. Beneficiaries could include children, spouses, or parents.

 
Whole life insurance is suitable for family heads who want to ensure financial security for their loved ones after they pass away and who seek long-term coverage. Due to its long-term nature, whole life insurance is also suitable for purchasing additional riders, such as health coverage, critical illness coverage, or accident coverage.

Annuity Insurance

Today, many young people aim to retire early, making post-retirement planning important. Annuity insurance caters to this need by providing a guaranteed income after retirement. It involves long-term saving combined with life coverage, starting payments once the insured retires and continuing regularly (as specified in the policy) until the end of the term.

Annuity insurance is ideal for those planning their finances for post-retirement, wanting a steady income stream.

Unit-Linked Insurance

Unit-linked Insurance, often referred to as unit-linked, offers life coverage in the event of death and an opportunity for investment returns by investing the insurance premiums paid in mutual funds managed by professionals to obtain higher returns. The premium paid is split between life coverage or disability benefits (as specified in the policy) and investment in mutual fund units managed by professionals. The returns depend on the performance of the chosen funds.

Unit-linked is highly flexible, allowing for adjustments in premium payment period, coverage period, and sum insured based on necessity and suitability at different life stages. Policyholders can also choose to invest in funds according to their risk tolerance.

Unit-linked insurance is suitable for those seeking flexible policies concerning life coverage and premiums, who are willing to take investment risks and have a reasonable understanding of investing in mutual funds.

There are various types of life insurance to choose from, depending on which best suits your needs. Planning for the future with life insurance can ease your mind if unforeseen events occur. If you're unsure which life insurance to buy, Muang Thai Life Assurance offers ShieldLife, to feel relieved when you leave.

- Choose the coverage amount that suits your needs.
 
- Choose to pay the premium comfortably, whether short or long-term.

- The entry age is up to the age of 90 years.

For more information,    
☑ Tel. 1766, available 24/7
☑ Contact life insurance agents or Kasikornbank and Land and Houses Bank branches.

• In case the beneficiary is not specified or specified but the beneficiary passed away before or in the same time with the insured, the policy benefits will be paid to the insured’s inheritance.
• ShieldLife is a marketing name of whole-life, term-life and universal life insurance.
• Coverage conditions are as specified in the insurance policy.
  Underwriting is subject to the Company’s rules.
• Premium is eligible for tax deduction. Conditions are as specified by the Revenue Department.
• Please study the details of coverage, conditions and exclusions before deciding to purchase insurance.

Source: Data retrieved on 17/04/2024

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