No Excuses


Having life insurance is a fundamental part of having a sound financial plan. Depending on your type of policy, life insurance can be very affordable, which means there is no excuse for why you cannot get coverage today. In addition to this, as time go by, you will find peace of mind in knowing money will be available to protect your loved ones in the event of any adverse changes in your circumstances. Here are five main misconceptions that many people still have about getting life insurance.

1/ I don’t think that I can afford it

The cost of life insurance depends on a number of factors, including how old you are when you decide to take out a policy, how healthy (or unhealthy) you are at that time, which type of life insurance, and how much coverage you want to buy. Research shows that consumers can usually afford life insurance but generally do not have a good understanding of how much a life policy might actually cost – and so they tend to overestimate the actual cost.

2/ I’m fit and healthy, so why should I worry?

You may be healthy now, but the fact is none of us know for sure if we are going to be healthy tomorrow or the next day. There are endless stories on the internet about people who ignored life insurance because they were young and healthy, only to be hit by an unexpected medical crisis that made them ineligible for life insurance. So if you have got a husband/wife, or children, or a parent who relies on your financial support, you should seriously consider at least some form and amount of life insurance.

3/ I have other financial commitments that are more important

For some people, spending their hardearned cash on vacations, or shopping, or movies, or eating out is more important than using it to pay for a life insurance policy. For others, their mobile phone, Internet, and cable payments are higher priorities than purchasing life insurance. Younger shoppers in particular realise they need life insurance, but it is not a priority for them. However, if they spent less on eating out and movies they could then use the savings to fund an insurance policy instead.

4/ I will eventually do it, maybe next year 

A lot of people procrastinate when it comes to purchasing a life insurance policy. Even though they recognise the value of life insurance and are aware of their need for it, many consumers do not get around to taking care of that need. So take action, do your research and get in touch with a trusted agent or company. They will be able to explain and guide you through the various policies and their terms and conditions.

5/ I have enough assets to leave my family, therefore I don’t need it

Think about it, what form are those assets in at the moment? Are they mainly liquid assets, meaning your family could quickly convert them into cash should the need arise? Or are they mostly in non-liquid form, such as real estate or a share in a business? If you have non-liquid assets, then a life insurance policy could provide your loved ones with access to some “ready cash” that would allow them to pay off debts that may require immediate attention. This would also enable them to keep those non-liquid assets rather than selling them off quickly for a fraction of what they might get if they could hold on to them for a longer time.

When you are looking at life insurance policies you are essentially looking for a product for your family. So you have to make sure that you choose a policy with all of the features and benefits that your family could ever need if you’re not around to provide for them anymore.

Here are a few important questions that you need to ask to ensure that you are getting the life insurance policy that best suits your needs –:

What are the different types of policies?

What happens at the end of a term life policy?

How can my policy be upgraded?

What will my premiums be?

What are the features of my policy?

• Can I name any beneficiary I choose?

• How can I change a beneficiary?

• How can my family file a claim and how long does a claim take to be processed and paid?

• Is disability insurance also included?

Should I also buy a life insurance policy for my partner or my children?
What is involved in applying for a policy?

• Find out whether you need to complete a medical exam to assess your eligibility for the insurance policy

AIA aims to help you find an investment approach that fits your financial goal and risk appetite by combining innovative products with expert advice. AIA understands that each of you have unique financial goals, therefore AIA has designed a line of investment linked plans that offer you smart solutions to satisfy your portfolio needs by delivering consistent performance. Investment linked plans offer you the opportunity to participate in investment opportunities while ensuring you have financial protection through life insurance. You can benefit from investment opportunities in developed and emerging markets, and in different ranges of risk/return profiles.

This article was published in the April 2016 issue of Inspire Living Magazine. Download it here!

This advice on family living is made possible with support from