What is Traditional Insurance

Traditional insurance is life insurance that has only protection and savings features, also called term life insurance.

Term life insurance is an insurance policy where a time limit is agreed upon, and the insurance company pays the agreed upon amount of money if the insured dies or becomes totally disabled before the time limit expires. If the time limit expires and the insured is still alive and well, the insurance company does not have to pay the premium. The insurance contract will be terminated naturally and the insurance company will not have to refund the premiums paid according to the terms of the insurance policy.

Term life insurance has the advantage of low premiums and high protection, and the premiums paid out by the insurance company are not subject to personal income tax or estate tax. Common types of term life insurance include death insurance, survivorship insurance, life and death insurance, annuity insurance, and frailty insurance.

Term life insurance is more suitable for the following groups of people:

(a) People who do not have a very high income, but have a high need for protection. These people are usually the main breadwinners of an average family.

(ii) Young people who are just starting out in their careers. Young people who are just starting out have less money to spend on insuring themselves, so a low-premium, high-protection term life insurance policy is perfect for them.

(iii) Employees of emerging companies. These people have less money available to insure themselves, and a low-premium, high-protection term life insurance policy is cost-effective for them.

(iv) Partners in private businesses. These people are often burdened with various loans, and taking out term life insurance does not require a relatively large investment, but also protects the normal life of their family.