Page 2 - IB August 2020

Why Life Insurance - An Awareness Series Brought to You by BSP Life

How does life insurance work?

The idea of having Life insurance is to manage financial hardships during an unpredictable event. Let’s say, you live
in a community of 10 families. Suddenly, one of the family’s breadwinner passes away leaving his children and wife
behind. This family would be in so much financial difficulties due to the death of the breadwinner. Now, if the whole
community would have shared an emergency account for the community, the pool of funds would have assisted the
grieving family at the right time. Similarly, life Insurance companies collect premiums from policyholders and pay out
as future death benefits and maturity returns.

Life insurance policies can support various
life needs including:

Protecting Savings Retirement Education
your loved ones

Life Insurance Investing in a life One can fulfil their To secure the
allows breadwinners insurance policy retirement goals future of your
to protect their loved helps you to save with life insurance children, you can
ones from financial money for the policy returns, invest in a life
hardships in the future. complementing insurance policy
event of untimely their FNPF to pay for your
passing. savings. children’s higher
education.

Frequently Asked Questions

1. How much does life insurance cost?
Cost of buying any insurance policy depends on the following factors:
• The insured person’s age – the younger you are the cheaper it is.
• Type of policy
• The sum insured you choose
• Policy term
• Premium payment frequency

2. How much should I insure for?
The amount you insure for is called the Sum Insured. The Sum Insured amount is based on your needs and
affordability.

3. What do I get if I insure?
Life insurance is primarily about protection – protecting the life of someone who depends on you and your
income for their livelihood, like your dependent child.

4. Which type of policy is best suited for me?
The policy best suited for you depends on your medium and long term needs.

Talk to your BSP Life Insurance Advisor for more details.

132 700 | bula@bsplife.com.fj | www.bsplife.com.fj

2 Islands Business, August 2020