Page 3 - 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 August 2020 Vol 46 No 8
as future death benefits and maturity returns.
CONTENTS
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 10 18 24
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

4 Editor’s note 21 FEMM seeks money for COVID, climate
1. How much does life insurance cost?
Cost of buying any insurance policy depends on the following factors: 6 Briefs 24 COVID-19, the Pacific vuvale and Pacer Plus
• The insured person’s age – the younger you are the cheaper it is. 8 Whispers 26 Now is the time to reduce remittance costs
• Type of policy
• The sum insured you choose 10 Jobless numbers soar in Fiji 30 Fuelling faith and climate action during a
• Policy term 14 Fiji hotels prepare for a COVID-safe future double crisis
• Premium payment frequency
16 COVID-19 to bring ‘prosperity’ 32 What is to become of USP?
2. How much should I insure for? 17 Vanuatu @ 40 34 Apisai Tora: A rebel and a traditionalist
The amount you insure for is called the Sum Insured. The Sum Insured amount is based on your needs and
affordability. 18 Strengths and stresses: Pacific economies 36 Movers and Shakers

post-COVID
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.
Cover image: Photo: Groovy Banana

Talk to your BSP Life Insurance Advisor for more details.

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

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