Public Insurance

Life insurance serves as a protection if the insured dies. For example, if I was insured of a life insurance product and die tomorrow, then the insurance company will give the sum assured to the people I left behind.

The goal of taking the life insurance is to cover the potential loss of revenue. If I as a breadwinner die, the family that I leave behind will lose a source of income. If I follow the life insurance program, then the family I leave behind will get the sum assured that can be used as a substitute for the lost revenue, at least temporarily.

Actually the rules of choosing life insurance products are not much different than choosing other products:

• Do not buy life insurance if it is not necessary; and
• If you need life insurance, buy life insurance that provides adequate protection.

From my brief survey to several friends and family members, you could say that none of those who take life insurance in accordance with the rules above. Most of them buy life insurance when not needed, and not take life insurance with an adequate sum insured if necessary. It gives us a picture about how they underestimate life insurance. Yet, for some people who can see far to the future, life insurance is really important.

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