Women today are not only key contributors to household incomes but also often take on caregiving roles, managing household finances, and contributing significantly to long-term family stability. 

Today we explore why women should prioritize life insurance as a cornerstone of their financial planning. From ensuring financial stability to securing their family’s future, life insurance is a critical tool that every woman should consider.

Women Are Key Contributors to Household Income

In the contemporary family structure, women are no longer just homemakers. They are actively involved in supporting their families financially, whether through full-time employment, running their own businesses, or part-time work. This shift in roles underscores the importance of life insurance for women.

In a family where a woman’s income is needed to cover essential expenses like rent, groceries, or education costs, if something unforeseen were to happen to her, the family could face severe financial hardships. 

A life insurance policy can act as a safety net, providing funds to cover immediate and long-term expenses, ensuring the family’s financial well-being remains intact.

The Financial Value of Caregiving

Even when women are not earning a direct income, their contributions as caregivers have immense financial value. Women often take on the role of managing households, raising children, or caring for elderly family members. If they were no longer around, the cost of replacing these services could be substantial, making life insurance a crucial financial tool.

For example, hiring a nanny, housekeeper, or elder care professional could strain a family’s finances. A life insurance policy can provide the necessary funds to cover these costs, reducing the emotional and financial burden on the surviving family members.

Rising Education and Healthcare Costs

Women often put their children’s education and healthcare first. However, these costs are increasing worldwide, and unexpected events can disrupt plans for a child’s future.

Life insurance can provide money for important expenses like tuition fees, extracurricular activities, and medical treatments. By getting a policy, women can help ensure their children’s futures stay bright, even if they are not there.

Coverage for Single Women

Many single women may assume that they don’t need life insurance because they don’t have dependents. However, life insurance isn’t just about providing for others; it’s also about protecting yourself and your assets.

For single women with loans, mortgages, or other financial obligations, life insurance can ensure that debts don’t become a burden on family members. Additionally, certain policies allow for cash value accumulation, providing a financial resource that can be used later in life for retirement, emergencies, or other needs.

Women Live Longer Than Men

Statistically, women tend to outlive men, but living longer also comes with increased financial responsibilities. Women may need more savings to support themselves during retirement, cover long-term care costs, or manage medical expenses in their later years.

Permanent life insurance policies can help women build a cash reserve over time. This reserve can be used to supplement retirement income, cover healthcare costs, or serve as a financial cushion in case of unexpected expenses.

Life Insurance Is More Affordable for Women

One significant advantage for women is the affordability of life insurance. Premiums are often lower for women than for men, making life insurance an attractive and feasible financial product for women who want to secure their families’ futures without overstretching their budgets.

This affordability makes life insurance an attractive financial product for women who want to secure their families’ futures without overstretching their budgets.

Empowerment Through Financial Independence

By owning a life insurance policy, women take control of their financial futures and ensure that their loved ones are protected regardless of external circumstances.

Life insurance also empowers women to make other financial decisions confidently, knowing that their safety net is in place. Whether they choose to invest, start a business, or pursue further education, having life insurance in their portfolio can provide a profound sense of peace of mind.

Women-Owned Businesses Need Protection

For women entrepreneurs, life insurance is more than just a personal safety net—it’s a business asset. Many women-run businesses rely heavily on the owner’s expertise, leadership, and financial contributions. A life insurance policy can be structured to support a business in case of the owner’s untimely demise, ensuring the business’s survival and growth even in challenging times.

A life insurance policy can be structured to support a business in case of the owner’s untimely demise. It can provide funds to cover operational expenses, pay off business loans, or even support a succession plan. This ensures that the business survives and thrives even in challenging times.

Financial Security for Aging Parents

In many cultures, women play a significant role in supporting their aging parents financially. Life insurance can help ensure that this support continues, even if the unexpected happens.

For example, women can opt for policies that designate their parents as beneficiaries, providing them with a steady source of income in the event of their daughter’s passing. This is particularly important for parents who depend on their children for medical expenses, housing, or daily needs.

Final Thoughts: Protecting What Matters Most

For women, life insurance offers a way to secure their future as well as their loved ones, support their aspirations, and achieve peace of mind.

Whether you’re a working professional, a stay-at-home caregiver, or a business owner, life insurance is an essential component of your financial plan. Don’t wait for the “right time” to invest in life insurance—the best time to start is now. By prioritizing life insurance, you’re taking a significant step toward building a financially secure future for yourself and your loved ones.

Take control of your financial future today. Consult with a trusted insurance advisor to explore the best life insurance options tailored to your needs. 

Sadia Zaheer

Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.

The post Why Women Should Consider Life Insurance: Financial Security for the Future appeared first on Smartchoice.pk.

The emergence of one unexpected financial crisis after another has made it crucial for individuals and families to consider life insurance planning as a core part of their financial strategy. 

Life insurance is a safety net during challenging economic times, offering financial protection and peace of mind to loved ones. We will explore the need for life insurance planning during economic uncertainty and provide insights to help you make informed decisions.

Understanding Economic Uncertainty:
During economic cycles, traditional investments usually experience volatility, which causes financial insecurity among investors. Life insurance usually remains stable, offering stability and predictability in an otherwise turbulent financial landscape.

Economic uncertainty occurs when there is an unstable situation and future financial conditions and performance are uncertain. Economic situations like stock market volatility, recession, inflation, and geopolitical events can significantly affect the financial well-being of individuals and their families. 

During these uncertain times, life insurance planning plays a role in defending us against potential risks.

The Role of Life Insurance:
Life insurance acts as a safety net for the dependents in the event of the policyholder’s death. 

It offers a tax-free lump sum cash amount, also called the death benefit, which can be used to cover multiple financial obligations like:

1. Replacing Lost Income: If the primary breadwinner passes away, life insurance can help replace the lost income, ensuring that dependents can maintain their standard of living and meet financial commitments.

• Paying Off Debts: Life insurance can help pay off debts such as mortgages, loans, and credit card bills. This stops the burden of debt from falling on the shoulders of grieving family members.

• Covering Education Expenses: Life insurance can be instrumental in funding children’s education. The death benefit can cover tuition fees, college expenses, and other educational needs.

• Funeral and Final Expenses: Life insurance can provide immediate funds to cover funeral costs, medical bills, and other end-of-life expenses, relieving the financial burden on the family.

Types of Life Insurance Policies:
When planning for life insurance, individuals should evaluate the available options and choose a policy that best matches their financial goals and circumstances. Here are some types of life insurance policies:

• Term Life Insurance: Term life insurance offers coverage for a specific period (called term), usually 10, 20, or 30 years. It provides a benefit payout if the insured passes away during the duration of the insurance. Term life insurance is mostly more affordable compared to other insurances but does not accrue cash value.

• Whole Life Insurance: Whole life insurance offers lifelong insurance and includes an investment component known as cash value. It provides a death benefit and accumulates cash value over time, which can be used through loans or withdrawals against your policy.

• Universal Life Insurance: Universal life insurance pools whole life coverage with flexible premium payments and an investment component. It offers a death benefit and accumulates cash value based on market performance.

Assessing Your Life Insurance Needs:
Determining the appropriate life insurance coverage is crucial to protecting your loved ones during economic uncertainty. Consider the following factors when assessing your life insurance needs:

Financial Obligations: 

Calculate your family’s financial obligations, including mortgages, education costs, outstanding debts, and daily living expenses. Ensure that the life insurance you select offers coverage sufficient to meet these needs.

Income Replacement: 

Evaluate the number of years your dependents would require financial support if you were to pass away. Multiply your annual income by the number of years to get an estimate of the necessary coverage.

Existing Assets and Savings: 

Consider your existing assets, savings, and other forms of life insurance coverage. These helps determine the additional life insurance required to bridge any gaps.

Future Financial Goals: 

When deciding on the coverage amount, take in future financial goals such as retirement age, children’s education, and emergency funds.

Group Life Insurance

If your employer offers group life or health insurance as a benefit, take advantage of it. While group coverage may not be sufficient on its own, it can complement an individual policy and provide additional protection at a lower cost.

Reviewing and Updating Policies:
Life insurance planning is not a one-time action. It needs periodic review and updates. As economic conditions change, it is essential to reassess your coverage to make sure it aligns with your evolving needs. 

Life events such as marriage, childbirth, career changes, or significant financial milestones should be triggering points for a review of your life insurance policy.

Compare quotes from different insurance companies to ensure you are getting the best coverage at the most affordable price. Consider working with an independent insurance agent who can help you explore your options.

Life insurance planning is a key aspect of financial security, particularly during economic uncertainty. By understanding the importance of life insurance and following these tips, you can ensure that you and your loved ones are protected financially, no matter what the future holds.

By understanding economic uncertainty, assessing your needs, and choosing the right policy, you can confidently navigate through uncertain times, knowing that your family’s financial future is secure.

Remember to consult with a reputable insurance professional to guide you through the process and tailor a life insurance plan that suits your unique circumstances.

Sadia Zaheer

Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.

The post  Life Insurance Planning in Times of Economic Uncertainty appeared first on Smartchoice.pk.

Why buying life insurance in your 30s is simpler than you think…

If you’ve been delaying the purchase of life insurance because you think it will be too much of a stress, think again. You can challenge this financial task in 30 minutes or less. So, apply for a life insurance policy, get the required coverage you need and acquire peace of mind knowing that your loved ones will be protected.

To purchase or not to buy life insurance, that is the question that should come to every 30-something’s mind. Right? Ok, maybe we have exaggerated a wee bit regarding the threats and risks. But to be fair, lots of things are there that are needed to be considered if and when deciding to buy life insurance.

To buy or not to buy life insurance, that is the question on every 30-something’s mind. Right?

When the year strikes 30, all of our life changes, the changes can be like buying a home, getting married, starting a family, moving up the career ladder are major motivators. Others are just proactive and want to lock in a low rate sooner rather than later. Whether you’re in the first type, the latter, or just plain confused, we have got you covered. Let’s dig into why you may or may not need life insurance in your thirties.

Do You Really Need Life Insurance at 30?

It depends on the situation you are in, as the answer to a lot of insurance and personal finance questions. Because there’s no one-size-fits-all explanation when it comes to buying life insurance coverage, you need to evaluate what your household’s needs are right now and what they may be in the future.

When you are in your 30s, it can be an ideal time to buy life insurance. As when you are in this age where, if you’re in good and upright health, you’re likely to be able to get affordable life insurance coverage with the right policy. And you’re in all probability at a point in your life where others depend on you financially and you would need a way to replace your income if you were no longer there.

Those are just some of the reasons that buying life insurance in your 30s is often one of the most practical, impactful and affordable times to secure coverage. (Plus, it’s not a coincidence that the average life customer should ideally be in his or her mid-30s.)

Here are some of the smart and practical reasons to buy life insurance in your 30s especially the early 30s, as well as tips for what kind of insurance and how much coverage you might need. Trust us when we say and we are 100% sure that: Your 40-year-old self will thank you for not putting off this important purchase.
1. You have a family now
As an individual in your 30s, one might find themselves buying a house, getting married, or starting a family. One will have plenty of monetary responsibilities that they need to attend to, and at this age, some people likely have people who depend on you financially. If you were to die an anytime accidental or natural death, your loved ones might not be able to pay the bills without your income.

However, you can financially protect your family from your death if you have life insurance. When you buy a policy, you agree with a life insurance provider. You can pay your annual premium broken down into monthly instalments to the insurance provider in return for a payout to the beneficiaries (the “death benefit of the insurance policy”) if the policyholder passes away while the agreement is in place.

The payout from the procured life insurance policy can be used by those individuals you name as your beneficiaries), who may be your partner, kids, designated guardians or even your parents – to help pay for a variety of expenses, including the following:

1. Secured loan or rent
2. Child care costs
3. Groceries
4. Utilities, transportation and other regular expenses
5. Medical bills
6. Other insurance policy premiums

One should think of the policy as a lifeline for their loved ones. Without it, the family likely would struggle financially. A survey conducted by a nonprofit organization Life Happens found that 4 in 10 households without life insurance would have trouble paying living expenses if their primary wage earner died.

An individual can also think of life insurance as a very important first gift to your child. Every parent has hopes and dreams for their children that cost money to make happen. Buying an insurance policy now helps ensure that the family has money to continue to have the funds for those plans. Knowing that the children are protected and safe and will have a life insurance policy payout to put toward things like taking dance classes, going to camp or attending college and universities, even if the wage earner were no longer there, is one way to initiate leaving a legacy for your child.

2. You make more money now

Chances are, you’re making more money in your 30s than you were in your 20s. Your higher income would be difficult to replace if something were to happen to you.
However, a life insurance policy purchased could help replace some of the lost income. Insurance experts often recommend that an individual buy insurance coverage with a death benefit that is equal to five to 10 times the policyholder annual salary. Remember that pay disproportions among women and men can lead to a life insurance gender gap, so this rule of thumb doesn’t always stack up.

To find out how much coverage you need, use an online life insurance calculator for a personalized recommendation.

3. You might owe money, to people/institutions

By the time you’re in your 30s, you likely have debt/mortgage debt, a student loan debt and consumer debt (means credit card debt). When an individual dies, the debt might and usually doesn’t die with the person. It depends on the type of debt and whether there is a co-signer on the credit.
For instance, if you and your partner or spouse took borrowed money together to buy your home, the partner will have to continue paying the secured loan after the death of one partner if he or she stays in the house. Student loan debt can be trickier to deal with.

An international survey of student loan borrowers found that 73% of respondents didn’t know what would happen to their student loans if and when they died. The private student loans taken from a bank or any other institution depends on the lender’s policy. Plus, if you have a co-signer on a private loan, the individual will have to continue making the payments.

If an individual has any debt with co-signers, such as student loans or home loans, it’s significant to consider buying a life insurance policy that can help them pay off those loans. It’s also critical to think about all the other things that the loved ones may be on the hook for if you were to pass away.

4. You could save money by getting life insurance now

Whatever the price may be, nothing compares to the cost of mental peace and serenity. The financial protection an individual can provide for their loved ones makes life insurance worth the cost. As luck would have it, the cost of life insurance can be quite affordable if you buy a policy in your 30s.
The premium you pay for insurance is determined by several factors, including an individual age. Considering that, it’s probably no revelation that you can buy a life insurance policy at a lower insurance premium by getting coverage when you’re young and healthy.
For example, a 30-year-old woman in excellent health can purchase a 30-year long life insurance policy with a PKR 100, 0000 death benefit from any life insurance provider for a predetermined amount per month. If the same woman waits until 40 to buy a life insurance policy, the starting price for the same amount of pay-out and coverage would be many thousands more per month. In other words, your life insurance policy might be more affordable than you think, and it might never be affordable than it is today. Try finding the right policy for people in their 30s in excellent health, you just need to browse and search online to find the right fit.

Life insurance is more affordable than you think

Get your free quote from Smartchoice Now!

5. You could avoid medical hurdles

The health of an individual also plays a big role in your ability to get life insurance coverage and the premium rate a person would pay for it. Healthier adults pay lower rates because they’re considered less risky for the insurance provider. So insurers typically some companies require applicants to go through a medical underwriting process.
For example, when you apply online for a term life insurance policy from Smartchoice, all a person has to do is to fill in the details to answer questions about your personal history and your family health history. The responses will be recorded for further processing of the policy by the insurance provider.

Smartchoice also offers the Term life policy in which some applicants ages 18–59 seeking a lump sum payout up to 1.5 million death benefit or less might meet the criteria that allow them to finalize coverage without a medical exam, based on the information they provided during the application filling process.

An individual can complete an application to find out if they qualify to acquire the life insurance policy. (Keep in mind that it’s always very essential, to be honest in the application filling process. The issuance of the policy or payment of benefits may depend upon the details given in the application and their truthfulness.)

The longer an individual waits to procure a life insurance policy, the greater are the chances that they’ll develop health issues that will result in having the individual pay a higher premium rate for coverage. It will make it harder for an individual to get the desired coverage. So if an individual thinks he/she needs life insurance coverage, lock in an affordable rate while you’re in your 30s and still healthy to get a great premium rate.

6. Your family needs cash for funeral expenses

We understand that life is unpredictable and losing you will be hard enough for your family and dear ones. Well none of us wants to make a bad situation worse by leaving the family on the hook for your funeral and other costs. A funeral, and burial with other expenses like grave cost etc. can easily cost upwards according to the expenses incurred and the rituals followed. A life insurance policy’s death benefit could be used by the family to pay for those costs.
If an individual didn’t have life insurance, the spouse or other immediate family members would need to come up with the cash by any other means to pay these expenses at the same time they’re grieving for the death.

7. You need to protect your business

If you have any business dealings, life insurance can be important for succession planning. Let’s say a person buys and sell real estate for a profit. What would happen if the individual passed away in the middle of a deal? What if the person flipping houses for a profit? How would the family handle the project if the individual passed away during a flip or a major remodelling job?
A family could face similar struggles if the individual runs a small business that buys and holds inventory, has business-related debt or has ongoing business expenses to cover. If an individual buys enough life insurance, on the other hand, one can leave behind enough cash for the family to deal with the business holdings the way the individual would have desired.

8. You’ll have one less thing to worry about

Want something simple to check off the to-do list? Apply for affordable life insurance online. Thanks to modern technology, buying a policy is easier than ever. If you apply for life insurance coverage online and are approved for a policy, your rates are locked in through the specified term length, as long as you continue to pay premiums.
Life insurance for people with a life.

In today’s world, we make and track our budget online. You invest online. Why not apply for your life insurance online? It saves time and hassles both!

Another important question is what kind of life insurance should a 30-year-old buy?

Two types of life insurance are commonly purchased: term and permanent (long term life insurance). Term life insurance provides a simple, affordable way to help financially protect your family for a specific period of time typically available in Pakistan is a period of 1 year. If you die during that period, your insurer will pay a death benefit to your beneficiaries. And you can get this coverage for less than the cost of many everyday expenses.
Permanent life insurance comes in a few varieties the most common being whole and universal life. Unlike term, permanent policies provide coverage for a lifetime and include a cash value component that can grow or decrease over time. These features are why permanent policies can cost anywhere from 5 to 20 times more than a term life policy.
So, which is the right choice for an individual in his or her 30s? That will depend on your budget and what you want from a life insurance policy. For many, though, term life insurance is a good, affordable way to put coverage in place.

How much coverage does a 30-something need?

While individual life insurance needs vary from person to person, one can get a general sense of your coverage needs by taking a closer look at their income. If an individual is earning PKR 12, 00000 per year and wants to replace your income for five to 10 years (a standard recommendation from experts), the person would need a term life insurance policy with a death benefit worth which is 5 to 10 times greater than the said income. If you don’t have any personal income as you’re a stay-at-home parent, that doesn’t mean you don’t need insurance coverage. It needs to understand that if someone is no longer around, the spouse or partner would have to pay for child care and other tasks that were being typically handled by the partner, such as cleaning the home.
So when figuring out how much coverage you need, you should factor in the following:

• Lost income and living expenses, like rent or daily bills
• Debts you leave behind
• Child care if you are a stay-at-home parent
• Funeral, burial, and other final expenses
• college expenses for your children
• Unpaid medical bills or taxes

If a person is a parent, carry considerable debt or own a business, they may need more. Again, a life insurance needs calculator can help an individual to make a sound decision.

Life insurance needs aren’t one-size-fits-all.

Calculate the needs

What’s the best term length for people in their 30s?

In addition to choosing how much coverage you need when buying term life insurance, you need to decide how long you want your policy to last. You want the coverage to be available when your family needs it most. That could mean until your secured loan is paid off or until your kids have graduated from college.
Fortunately, an individual has plenty of options available to you, especially in your 30s. They can buy long term life insurance life cover for 10, 15, 20, or 30 years, depending on the needs of an individual. Shorter-term policies tend to cost less with obvious lesser returns. But saving a few dollars each month on premiums might not be worth it if a person dies shortly after the term is up and the family is left without any kind of cover or protection.
While longer policies tend to cost more each month or year, but they do offer a longer span of coverage that may bring peace of mind during that period.

You’re a great contender for a life insurance policy if one or more of these apply to you by any means:

1. You’re in a Long-Term Relationship

Well, we don’t ask but everyone knows their own situation whether you’re married, in a committed relationship, or prefer not to talk about the relationship status (hey, you do you), but what we are trying to put forward here is if someone has someone who is depending on them financially then a step needs to be taken in the right direction.
A family that is depending on the income of that certain individual. We have often seen families where the whole family depends on the income of one person completely. There are no other cushions or anything just one person to depend on. In this situation having life insurance is very significant. A life insurance policy can provide some financial security for your loved ones. After all, the death, benefit the amount of life insurance coverage obtained is tax-free and the money can be used to pay for any expenses which are necessary for day-to-day life.
Sure, being a Pakistani we do have savings for the rainy day and it can cover expenses, too. But why dip into a rainy day fund or post-retirement account when an affordable life insurance policy can take care of those necessities and more?

2. You Own a Home

Purchasing a home is a gigantic and expensive milestone. Aside from the home loan, there are the costs of sustaining and maintaining the home, additional expenditures, and perhaps even reshaping services after ignoring your flower beds for so long that everybody around you has noticed…
If an individual has a mortgage, a life insurance policy can cover the equilibrium of your loan plus any other expenses to keep a roof over the head of your loved ones’.

3. You Have Other Liabilities

Student loans, car loans, and credit cards — oh my!
According to a survey, 30-something people owe a lot to banks in the form of multiple loans. But that’s not surprising considering this age range also happens to concur with child-rearing years and all of the expenses that come along with it. And even if you don’t have children, you might have some debt from college and university or a business seeding amount. Or maybe you spent a little more on your car than you have cash on hand for.
Whatever the reason for your debt, it doesn’t just go away after you’re gone. Your estate will owe that debt. And if the debt can’t be paid, it could mean selling any assets you may have left to your beneficiaries. And if you have any cosigners, then that debt now becomes their responsibility. Yup, even those student loans your parents signed off on.

4. You Have Children (Or Are Planning on Having Them)

To piggyback on the point above, you’re likely to incur more debt when children are in your household. You get a bigger home, bigger car, want to fund once-in-a-lifetime vacations to theme parks… you get it. So, it’s especially important to protect your family’s financial future if you’d like them to maintain your current lifestyle.
Even if you’re a stay-at-home parent, you have to take into consideration the amount of work that is keeping your household together. Think childcare, cleaning, cooking, chauffeuring, tutoring, and any other thing your children take for granted now but will thank you for it in about 20 years. Who would take care of all that if you were gone? Take all of these things into account as you try to calculate just how much life insurance you need.

Women, if you are pregnant or a new mother, you don’t need to wait to get a policy either. Plan and lock in a low monthly rate now while you’re younger and in great health. You can get a term life policy online without a medical exam, so you don’t need to worry about abnormal lab results from pregnancy hormones impacting how much you’ll pay for coverage.

5. You Want a Good Deal

If you’re into great deals, then listen up. Life insurance in your 30s can be super affordable.
In life insurance underwriting (the process that determines whether you’re eligible for coverage and if eligible, at what cost), your age is a major factor. Generally speaking, the younger and healthier you are, the less you’ll pay in life insurance premium.

Buying life insurance in your 30s is a steal, especially if you’re in the market for a term life policy. You can lock in a low rate for the next decade or two when you and your loved ones are most vulnerable. Meaning, relatively little savings and likely a good amount of debt.

What’s the Best Life Insurance For a 30-Year-Old?

While we can’t call it the best, a simple and affordable option is level term life insurance. Pick a term, coverage amount, and your monthly payment stays the same throughout the duration of your term.
For example, if you lock in a 20-year long life policy with PKR5000, 000 in coverage for PKR a few thousand per month, you’ll pay that amount during that entire 20-year term. And should you pass away and your beneficiaries receive the death benefit, they’ll get that PKR5000, 000 tax-free even if the claim is filed and approved on day 100 or day 7,000.

However, there are many other life insurance products out there. Another popular choice is whole life insurance which you can keep for life. These can be more complicated as they can build up a cash value and can get quite expensive. Just look at the difference between the monthly premium of a term life policy vs a whole life policy.
As you can see, buying a term life policy in your 30s is affordable and customizable. Maybe $500k isn’t the right amount for your needs. That’s fine, just buy more or less. It’s super easy to get, too. You can get quotes and buy coverage online without a medical exam in as little as 5 minutes. You can even do it on your phone.

So, if none of these applies to you, maybe now isn’t the right time. For everyone else…
Being responsible isn’t always fun but it is rewarding. And hey, if you knock out this task now, you can rest easy for the next decade or more.

Khurram Zahid

The post Buying Life Insurance in your 30s… appeared first on Smartchoice.pk.

• Most people don’t consider life insurance until later, but the best time to buy it is early on — even in your 20s.

• If you financially support a partner, children, or ageing parents, you need life insurance.

Anyone working a high-risk job or with extreme hobbies is likely to pay more for coverage, but those risks alone are reason enough to get life insurance

Reasons You Need to Buy Life Insurance

If you work for yourself, are starting a family, or are paying off debt, it’s probably smart to consider a life insurance policy. Having life insurance has become more of a compulsion these days. Read the blog to know the top 10 reasons for buying a life insurance plan for yourself and your family.

Buying a life insurance policy early in your life is one of the smartest financial decisions you can make in your life. Given the kind of hectic and at times chaotic lifestyle we have in today’s world, it is important to plan and save to secure the financial future of your family. One mechanism that can help you do so within your means cost is a life insurance plan.

Life Insurance can be defined as a contract or an agreement between a policyholder and an insurer, where the insurer promises to pay the recipient a sum of money in exchange for a premium that is paid over the time, upon the death or maturity of an insured person. Simply put, life insurance financially aids the family of the policyholder in case of his/her unfortunate event of death. Given that death is unavoidable, here are the top 10 reasons why one must absolutely have a life insurance plan

Taking care of a loved one

Looking after your loved ones in your absence with a life insurance plan, you can ensure that your family and dependents are taken care of, even when you’re not around them to do so. If you are the sole bread earner of the household, their monetary security should be of paramount importance to you and hence, getting a life insurance plan is a wise idea.

Paying off debt

The deb is your financial obligation should not become your family’s obligation after your death. It is significant to ensure that your debts are taken care of while you are on your good healthy days. However, in your absence, the life insurance policy will come to the rescue as your family can use pay off obligations such as auto loan, home loan etc. with the amount received from the insurer.

Achieving Long-term Goals

As a life insurance plan keeps you invested for a long time, it can be an instrumental tool to help achieve long term life goals like buying a house or funding major events of your child’s life. There are certain investment options available in the market that provides life insurance along with contributing a certain amount in secure investment options.

Supplementing your Retirement Goals

In the golden years of your life, your regular source of income might diminish. With a life insurance plan, you can surely ensure that you have a source of monthly income. Investing in a pension plan can be considered as you have to pay a stipulated amount regularly and get a steady monthly amount, even after retirement.

Cheaper Premiums when you’re younger

When you are younger and fairly healthy, you can procure a life insurance policy at a comparatively lower rate. This ensures that you get the premium amount and stay protected for a longer time, without worrying about the increase in premium sums.

Tax-Saving Purposes

Under the tax ordinance in Pakistan, you can avail of a tax rebate, when you buy insurance from the premiums paid of a life insurance policy. Therefore, not only does life insurance protect your life, but it also helps you save your money on tax.

Proposes Regular Savings

Life insurance is an important financial instrument, but one needs to remember that it is a long term tool and hence, require regular savings/payments. Therefore, it indoctrinates a habit of orderly savings to pay premiums, so that you save up enough money to financially secure your life and also the life of your loved ones, in case something unfortunate were to happen to you.

You Might not Qualify later

“Life is unpredictable” we have not only heard this but the current pandemic has made us realize this quite vividly. So as a healthy and financially independent individual, you would be qualified and eligible to buy a life insurance plan. Though, life insurance runs on certain reservations and segregations. For instance, if you fall critically ill and are unable to work because of the same illness, you might not be eligible to buy the desired insurance plan from the chosen insurance provider. Hence, it is important to buy life insurance when you healthy both physically and financially. It also is imperative to look for certain additional benefits that improve the quality and coverage of your plain life insurance plan.

Peace of Mind

Having a life insurance plan brings a certain degree of peace of mind with it as it assures that your life is financially secured. Also, in case of your unfortunate death, the death benefit would be paid to the dependents of the policyholder and their future financial needs would be taken care of.

Support ageing parents financially

The general rule of thumb is that if someone else relies on your income to live and sustain, then you probably or most definitely need life insurance.

Most people think and feel responsible to protect their spouse or children, but according to a research report, about 6.2 million millennial and others are performing duties of caregivers for parents, parents-in-law, or their grandparents.
If you support your elderly parents, or you think that you would be in that role one day, a life insurance policy ensures they’re left with some money for long-term care or personal expenses if you can no longer provide for them.

You work for yourself

If in your life there is a phenomenon of “every man for himself” meaning that life insurance can be incredibly valuable and helpful if you’re a small business owner, A report from Business Insider says that in many cases in the western world if you set up a “Key Person” or “Buy/Sell Agreement” life insurance policy, your employees or key stakeholders will still get paid in your absence. Basically, the death benefit on your policy will go toward paying off the entirety of the loan in the event of your death, and then the remaining amount will be paid to your beneficiaries.

Your job is high-risk

When buying life insurance the amount of risk associated with your profession shall always be assessed. Simply put, if you work in a perilous or high-risk environment, and there is a greater chance of dying than someone who sits at a desk all day and performs the job.

Some Jobs that are considered high risk are considered to be in aviation, construction, firefighting, mining, oil and natural gas, and a few others will almost always affect the premium, making it higher according to experts. Still, the high risk alone makes the policy worth having.

Most life insurance policies will not provide people in high-risk industries to add a disability rider, so it is recommended by Smartchoice to buy separate short-term insurance plans as well to protect yourself against temporary loss of income if you get injured on the job or elsewhere to provide medical and financial assistance.

You have extreme hobbies

If you’re a thrill-seeker and adventurous with a liking for extreme sports, you’ll probably be considered higher-risk by a life insurance company. But same as to have a high-risk job you’ll pay more to be insured, but the cost is worth it considering the likelihood you’ll die from unnatural causes. If you do have an extreme hobby, for instance, a thing like rock climbing, scuba diving, or something equally thrilling it’s best not to lie at the time of buying the policy, we at smartchoice advice that if you die within the first two years your policy is active and you didn’t unveil your regular high-risk activity, the insurance company has the right to cut the death benefit, or cancel the policy altogether.
As for the cost, you’ll typically see either a higher base premium or an extra annual fee calculated as a percentage of your coverage amount. Every insurance provider assesses the risk of hobbies differently, so it’s good to compare and shop if this applies to you.

Life insurance buys time and options

Too often, when an income earner dies, survivors are forced to make tough, dramatic decisions and to do so quickly. They have to make the decisions at a time when they may not be emotionally in a position to make good choices. Life insurance gives survivors a chance to adjust over time rather than having to move to a downsized home or find a new job right away.
Your life insurance gives your family choices by providing the benefits to help pay off debts, to help meet housing payments and ongoing living expenses, to help fund college educations for your children or grandchildren, and much, much more.

Life insurance provides cash when it’s needed most

Your life insurance policy will deliver a specified sum of money at a particular time of need. Upon your death, your family can be guaranteed that the amount you’ve chosen perhaps hundreds of thousands of rupees, maybe even millions will be there almost immediately. And that death benefit which is provided by the insurance provider is generally not subject to income taxes by the government. If you are not completely certain that the plan you are opting for provides you with the desired coverage which is in line with your family’s needs, you can visit www. smartchoice.pk, the platform has multiple life insurance plans from top providers which would help you in making a smart decision by searching, comparing and selecting the one that fits your and your family needs and requirements. When you speak to a customer adviser at smartchoice via UAN 021-111-212-212, you’ll work together to determine how much coverage you need, review what multiple products and policies are right for you, and review cost comparisons.

Khurram Zahid

The post Reasons to Buy Life Insurance!! appeared first on Smartchoice.pk.

We at Smartchoice have compiled the most significant and frequently asked questions by the people interested in investing in the life insurance policy. The investment can be made for multiple reasons, children education, marriage funds, post-retirement uninterrupted income and many other goals that may vary from individual to individual.

FAQs are as Followed:

Q: What features need to be checked before Buying an Investment Plan?

One of the most important things to ask yourself is that where are you investing: You need to understand and be sure about the place you are investing and how much risk is involved which is again proportional to your risk appetite.
When putting your money somewhere look for complete transparency and clarity, find the investment plans that are entirely transparent and clear.
When investing look and study past performance, the primary objective of investing is to increase returns on the money invested. To do so, you must check past performance report and analysis of the funds where you plan to invest your money. This will aid you to know how much returns can be expected on the money. As per your investment funds and appetite, you can look at their long-term or short-term performance report
How much fee is your investment expert charging you, well you may be charged a nominal amount as a commission to manage your investment portfolio. So you must check and be sure about how much you are being charged just to ensure you are not overcharged. And if yes, why!
Invest with a reputed investment company and know your fund house, one thing that is extremely important is knowing how reputed or well-known is your fund house. As you lay your trust in the investment management company it is essential to know about their claim settlement proportion. And more, you are investing your hard-earned money to them utilize on your behalf and to the best of their knowledge and understanding; it is pertinent to know your investment company.

Q: What are the things that you should know before Investment Planning?

1. The one thing to know before investment panning is knowing your Dependents. This is one of the most significant factors to consider before investment planning. Determine and decide the number of dependents in your family who you intend to cover under a certain plan for instance spouse, children, parents, in-laws, etc.
2. Set clear Financial Goals, this will help you define the amount of investment essential to achieve the predetermined goals. Have clarity that whether you have long or short term goals. For instance short term goals can be like buying a new car while long term goals might include children’s higher education, marriage, post-retirement income.
3. Understanding your current and future Liabilities is important as this will help you conclude the sum of investment which has to be devoted towards the desired investment plan without compromising on your present lifestyle and standard of living.
4. Choose the right Insurance cover to ensure that you purchase an all-inclusive insurance plan which offers a high sum assured. This will ensure that all financial goals are taken care off even in the case of your absence.
5. Realize your Debts and make sure that you calculate the investment money after deduction of any loans/instalments. It is logical to analyze your ability to take on additional debts, and you should only invest in them only when you are completely sure of your ability to pay them back within their due dates.
6.It is important to find a source for alternate Income for your family so opt for a life cover that will provide financial sustenance you and your family, in case of any grave unforeseen occurrences and accidents that can result in complete or partial disability or even death in case of an accident.
7. You need to find an additional source of income, one thing to do that is to always divide your investment amount into different/multiple policies. One part of the investment amount should be invested in life insurance plans while the other half of the investment amount into pure investment plans.
8. What is the set premium amount, the premium amount is the amount which you have to pay towards the insurance plan. You can decide on a suitable premium with the help of a premium calculator. There are online premium calculators available on the websites of multiple investment companies to provide investors with the convenience of getting free best quotes this facility is also available with smartchoice where you can compare quotes of investment provider against another.

Should I compare plans before buying Investment Plans?

1. Cover/coverage – It is logical to compare multiple insurance investment plans across different insurance providers. This will help you decide the suitable premium and the suitable insurance provider within your budget.
2. Riders/Additional Coverage – Riders (supplement covers) are an excellent possibility to enhance the coverage of your existing insurance/investment plan. You should only add those additional covers that you know about and their features and benefits opt for only the ones that are suitable for your unique needs and requirements.
3. Premium – Choose the premium total which is most suitable to your financial circumstances.
4. Increase/Decrease Premium – choose a plan which comes with the feature/option to decrease/increase your premium amount during the policy term. This feature allows you the convenience of starting with a lower coverage premium and gradually increasing the premium amount as per your rising annual income.
5. Payout Type – There are some investment plans that offer payouts on regular intervals, some plans others offer a one-time payout, while still, other insurance providers offer a mix of both. Choose wisely the option that best suits your purpose of investment and capital multiplication.
6. Returns – The returns on the investment plans depend on the types of funds which comprise the insurance plan. Funds can be equity, dues or hybrid based. Equity mutual funds are usually the best option for investors looking for high returns on their investment within a short period of time. Hence, they are best suited for people with high-risk appetite.
7. Alternative (more than one) Insurance Plans – one investment plan may not be adequate to meet multiple goals and objectives for the future and secure the financial needs of a family. Decide on a second plan which will act as a reserve in case the primary plan fails to provide a settlement.

what are the additional/Riders  Investment Plans ?

As an investor of life insurance investment plan can choose supplementary covers. As the investment plans also cartels death risk coverage, optional coverage under such policy is available with the insurance policy. Additional riders magnify the policy coverage. In accumulation to the simple sum assured, rider benefits are also paid to the insured.
• One of the important riders is accidental Death coverage: If the policyholder passes away the accidental death, the insurance provider will pay the policyholder sum assured initially plus the supplementary benefit to the beneficiary.
• Accidental & Permanent Disability benefit: If the policyholder undergoes permanent disability due to the accident, the insurance company gives the additional benefit to the insured individual.
• Critical Illness Rider: Upon diagnosis of any major critical illnesses such as heart attack, cancer, stroke, kidney failure, paralysis, coma, the insurance company pays the additional critical illness benefit.
• Waiver of Premium: In case of a vanilla term insurance, if the insured individual suffers any incapacity because of which it is unable to pay future premiums, the policy terminates by itself.
• Accelerated Death Benefit cover: upon diagnosis with a terminal illness that may result in death, such as Cancer, Leukemia. AIDS, Ebola, the insurance company pays a part of the sum assured in advance to the individual and the rest is paid to the nominee.

Are my premiums for life insurance policy tax deductible?

The premiums you pay for your life insurance policy are nontaxable. And you will need to work with your insurer to restore your coverage.

Does a beneficiary need to do anything to receive the death benefit?

In principle, a beneficiary does not have to do anything to receive the policy’s death benefit, but it’s a great idea to make sure he or she (beneficiary) is aware that the policy exists in case there are any delays or complications on the insurance provider side. The underwriter will require proof of death of the insured and a copy of the agreement in order to pay out the benefit.

When is the best time to buy life insurance?

The best time to buy life insurance is prominently based on your needs. While it’s correct that the younger you are, the less you have to pay for life insurance, you should only buy it once you’ve decided that there’s a need for it (for example, once you have started a family)

What does the number of years attached to a policy mean?

The years attached to a policy means 10, 20, or 30 indicates how long the policy will be active before it terminates, also known as the period of your life insurance. Your life insurance is active as soon as you return the signed paperwork with your first premium payment and it lasts until the end of the policy period.

Can I pay for life insurance with a credit card?

With regret, you can’t use a credit card to pay for your periodic premiums at most life insurance companies. Most insurers will let you pay your premium with a cross cheque in favour of the company, and you’ll have to use a check or electronic funds transfer for all your life insurance premium payments.

What is underwriting?

Underwriting is the process by which the insurance provider determines the risk of insuring you. An underwriter will use life insurance tables and calculators and other risk calculation tools to calculate the price of the insurance policy so that it lessens the risk to the insurer while still remaining competitively priced with other providers and gives maximum benefit to the individual.

Are all life insurance companies the same?

All life insurance companies are not the same. They differ in the level of customer service and in the variety of insurance products they sell; they can also differ in the entry age and the percentage of returns etc.
Even when two insurers offer what give the impression to be the same basic policy, each one may have different underwriting guidelines that lead to different prices. You should always do a comparison while buying a life insurance policy.

What is a death benefit?

The death benefit is the total of money that a life insurance policy pays to the recipient upon the death of the policyholder. It is mostly untaxed and paid in a single lump sum.

How quickly do insurers pay out the death benefit?

After you file your claim, the insurer could pay out the death benefit in as little as few as five days or as many as 45 days. If you can’t find the paperwork verifying the claim or the manner of death is suspicious, there may be delays.

Who Can I Designate a Beneficiary?

You can allocate anyone to be your beneficiary. If you choose, you can have an individual, numerous people, a charity of your choice, a trustee, or your estate listed as your recipient. In the event that you don’t have a beneficiary listed, any death benefits paid out will go to your automatically selected benefactor. If you are going to select a beneficiary, it is important to remember that you need to be clear about who receives the benefit and what proportion he or she will receive.

How Much Life Insurance Should I Purchase?

Gather all of your financial information and begin sorting through what expenses may remain once you are gone. For those who do not have family or dependents to care for, an insurance policy that covers the funeral expenses is adequate. For those with family and dependents, it is important to calculate all of the expenses that you will be leaving behind and the expenses of your dependents.

Can I Buy Policies for More Than One Person?

Joint or group policies are obtainable for those who want to have one plan that will cover more than one individual. As with standard single policies, working with an insurance agent is the best way to establish what needs to be done upon the cashing of the policy.

Khurram Zahid

The post FAQs Related to Life Insurance! appeared first on Smartchoice.pk.

The life you live like a young individual has its consequences when you’re old and unable to fix the mistakes you have made. What are the measures that should be taken to maintain a healthy lifestyle?

A healthy lifestyle comes with the smart choices you make. Here are some of the tips that you should follow in-order to maintain a healthy lifestyle:

1. Avoid “White poison”

Sugar is known to be as the white poison that can effect like obesity, type 2 diabetes, heart diseases and many more problems.

The intake of sugar is a necessity whereas you need to monitor it precisely when you are aware of your body type and it’s reaction to it. In order to have a healthy lifestyle, try to avoid processed sugar. You can intake natural sugar in the form of fruits.

NOTE: There are some fruits if taken excessively can be harmful to your body as they may contain the same or more amount of sugar like sweet drinks.

2. Healthy Snacking

Replace your old snacks with the new ones. Try out some homemade snacks made with nuts and dates i.e. energy bars, granola bars etc. This kind of snacking helps boost your immune system when you’re low and crave for something like sweet, chocolate or something crispy. It will also help you in maintaining your weight and energy at the same time.

3. Coffee is your “Best Friend”

Coffee is high in antioxidants. Its adequate intake can also reduce the risk of diseases like type 2 diabetes, Alzheimer’s s and Parkinson’s etc.
Most people adopt black coffee in the morning or multiple times in a day for weight loss. Please always consider that this doesn’t work for all types of bodies. Everybody has different choices to pick and react, you just need to choose the right one.

4. Get a pill of “Health Insurance”

This has nothing to do with eating and working out. It is linked with the much-needed type of financial investment for the future. We invest our finances for expensive clothing, hair, skin but never plan for the situation where you can fall ill with no money in your pocket. Get yourself a health insurance policy from jubilee General Insurance will help you maintain your existing lifestyle even after you’re out of money.

5. Get Enough Sleep

Your sleeping pattern defines the foundation of your whole lifestyle. A poor sleeping pattern can cause insulin resistance, disrupt your appetite hormones and can reduce your physical and mental performance.

Poor sleep can also cause hunger packs during nights. This will lead you towards Obesity as the timing of your intake is wrong hence the food is not digested.

Proper sleep can energize you physically and mentally as well. Practice this and you’ll see a huge difference in your productivity.

6. Avoid Junk Food

In the world full of amazing, edibles it’s hard to avoid junk food. It is fine if you are having it once in a month. Having junk food on a daily basis can cause various number of health issues.

Try to build the ritual of cooking the same thing at home. The same burger you eat outside will react differently if it’s home-cooked due to its hygiene and the quality of the ingredients used in its preparation.

7. Focus on the timing of your Meal

You may have always heard about what type of meal you should eat but may never hear of the right time of having a meal.

Just by having your meal at the same time, each day is going to make a lot of difference in your health. If you practice this every day then your brain would start giving the signal to your digestive system to work accordingly. This tactic is also helpful if you are considering to shed some weight.

8. Hydrate, Hydrate and Hydrate

Our 60% body is made of water. Waterworks as life fuel for your body. It helps in lubrication of joints, regulation of body temperature, blood flow, digestion and even respiration.8 ounces of water is the minimum requirement of the body each day.

Our body releases salt on a daily basis. The sufficient intake of water is going to cleanse your body from inside.

9. Focus on your Deficiencies

High levels of deficiency among all age groups, genders, income levels, and locations. Amongst the selected citizens, 53.5% had vitamin D deficiency, 31.2% had insufficient vitamin D, and only 15.3% normal vitamin D.

NCBI

This may not occur as a serious problem today but once you’ll get older, there is no way back to the healthy and strong bones.

Start focusing on your deficiencies. Consult a nutritionist and get a proper guideline to combat your vitamin deficiencies in early age in order to maintain the desired lifestyle.

10. Avoid Bright Lights Before Sleep

Using screen before bedtime can cause pressure to your eyes. The LED light of the screen is harmful to the eyes. It will also cause headache and dark circles. That will make you look and feel weaker. The more you use the electronic devices before sleep, the harder it’ll become to sleep on time.

11. It matters “ How you cook”

The timing of how much your food takes to cook is also important for health concerns. Your food should not be over-cooked or under-cooked.In both of the cases, it is going to be harmful to your health.

Always search on the internet about the cooking duration of every food item.

12. Diversify your Taste

The diversification in taste is important in order to stay healthy. One should be open when it comes to the taste of food. Try to have different combinations of food. Vegetables, Chicken, Seafood or Fruits is going to impact altogether for good health.

If you are someone who sticks to only one kind of food then you’re going to face little difficulty while maintaining your lifestyle.

13. Cardio is the Key

Cardio work-out is a high-intensity workout that helps you to make your metabolism strong. The stretch on the cold and warm muscles during cardio is going to shape-up your body.

15 mins of intense cardio-workout can show a lot of progress.

14. Extra virgin oil

People who consume Extra Virgin oil have a low risk of dying due to a Heart attack. In modern cooking techniques, people are replacing their canola oil with Extra Virgin Oil.

This has been in practice for thousands of years but by the time it has received great attention from the people who are conscious of their health and lifestyle.

15. Don’t go on Diet

Always make sure that going on a diet is not a solution to your problem. Things that work immediately on your body doesn’t last for a longer period of time.Crash diet, protein diet is one of these types.

Some of the diets are actually healthy for certain people who are seeking to gain/lose weight i.e Keto diet but this is also not a solution if you’re not going to embrace it as a Lifestyle.

However, clean eating is one of the solutions that are not hard to embrace as a lifestyle.

16.Track your work Life

Some people relate the healthy lifestyle with eating habits and burning calories but one most important factor is how your working pattern is? By working pattern means how much your job is stressful? Are you always working on short deadlines? These are some of the factors that keeps your mind stressful and hence it will make you feel dizzy and low most of your day.

It will also affect your appetite. One time you’ll feel nothing and and the next moment you’ll feel super hungry and in that situation, you would like to eat anything and eventually OVER-EAT. Having an unbalanced work-life is also going to make you unhealthy.

17. Burn your calories DAILY!!!

It’s pretty simple to understand this concept. Each day we intend to have calories and sometimes we add a number of it in our body. To keep it in balance, try to burn it on a daily basis. So you don’t have to worry about your weight.

18.Involve yourself into Sports

Try to indulge yourself in some sports activity in which you can have fun while doing something different. At the same time, you can burn your calories and keep your heart-rate balanced.

Sports activity like swimming, running and squash helps you a lot with muscles activity and leg work.

19.Get yourself routine check-ups

In Pakistan, if someone encounters cough or flu, they choose to do home medication first which is totally wrong. With the increasing climate change,different types of bacteria has taken place that are affecting people’s health in harmful ways.

One should always consult a physician or a doctor if they encounter any of virals or infections If you have permanent disease i.e. blood pressure, diabetes or asthma then get yourself a check-up once in every 3 months.

This can help you to track down on your health before it gets worst.

20. Avoid Drugs, Smoking and Alcohol

Drug addictions, Smoking, Alcohol consumption is harmful to your health without any doubt. If you’re addicted to any of these things, try to consult a doctor and leave it gradually.

21. Peace of mind for a Healthy Lifestyle

Aforementioned peace of mind with work and here we are going to mention the peace of mind with Personal Life. It is very important to monitor your relationships. The attitude of your close ones is always going to affect your mood and hence your mind too.

Try to be a problem solver and solve each problem in the shortest period of time. Because the more you drag it, the more you are going to think about it which is un-healthy specifically when you’re having problems like blood pressure.

22. Maintain good posture

Maintain a proper posture while sitting is important for a healthy spin. The pain in spin is generally caused by the wrong posture. If you‘re sitting sit in a wrong posture every day then you’ll feel comfortable with that but you don’t know that this posture is actually harmful to your back.

Wrong posture while sleeping can also cause disturbance and you’ll feel dizzy once you’ll wake-up.

23. Meditation

Nothing can replace the power of meditation. You may adopt all the tactics to remain healthy but there is nothing like meditation. No matter how much you’re busy, just close your eyes, lay down and think about how this world works, the system and its beauty. All the good things you believe in and this will contribute so much in your health.

24. Make it Habitual

Everything mentioned above needs to be done with consistency in order to get results. If you leave anything halfway then you shall not get the end result. Consistency is the key to healthy lifestyle.

25. Start NOW!!! And Gradually Change it

There is no starting point to anything only finish line is the defining factor. Start with small, baby steps and slowly and gradually try to embrace things. Adjust a little accordingly and then stick to it. It will become habitual as mentioned above. That’s what you need just keep going!!!

Bottom Line

These are some of the tips that you can adopt in everyday life. You just need to be consistent enough to hold onto these things and any-other healthy tips in order to achieve the desired Lifestyle. Share more tips with us in the comment section.

Stay Healthy and Fit

Khurram Zahid

The post 25 Tips to Manage a Healthy Lifestyle appeared first on Smartchoice.pk.

This blog post is going to give an overview of Life Insurance in Pakistan.

What is Life Insurance?

Life Insurance is a contract between an individual (the buyer of the insurance policy) and the insurer (insurance company).In this agreement, the insurer is liable to pay the death benefit to the beneficiaries upon the death of the insured.

The purchasing of a life insurance policy is determined by the applicant himself. the selection of the policy is driven by the lifestyle of the insured’s dependents and how much the amount will be required to maintain the needs of his family.

Life insurance is classified into three types:

Whole Life Assurance

When the sum assured is to be paid on the happening of the certain event, i.e. death of the insured, and then it is called whole life assurance.

Term Life Assurance

On the maturity of the life insurance policy, the amount is paid in one shot to the policyholder.

Annuity:

When on the maturity of the policy the sum assured is paid in installment, usually monthly, it is called an annuity.

The best age to get life insurance

The ideal age for obtaining life insurance is technically right after birth. Life insurance is age-banded, which means that as each year passes, the policy becomes more expensive.

The best age to purchase life insurance is under 35, but few people in that age group are able to afford life insurance.

What is the cut off age to Get Term Life insurance?

While you have to be 18 years or older to take out a life insurance policy, you can take out this type of insurance for or on behalf of a child or minor. It is recommended to take out a life insurance policy no younger than 25 years but no later than 50 years. The sooner you take out life insurance, the greater the benefit will be.

However, if you are over the age of 60 years, you may not be able to get term life insurance as most providers have this age as a cut-off to provide benefit. This is largely due to the fact that the insurer runs a greater risk of having to pay out a full benefit in case of death before they are able to cover the cost of the payout from monthly payments or premiums.

What are the various modes of payment for premium?

Premiums can be paid by the policyholders to the insurer in multiple ways depending on the insurer you are getting a policy from eg: in yearly, half-yearly, quarterly or monthly instalments.

Key Difference between Health & Life Insurance

The following points explain the difference between health insurance and Life insurance:

Life insurance, as the name suggests, is an insurance plan that covers the risk of contingencies that can affect human life and pays out the sum assured to the nominee on the death of the insured, or to the insured on the expiry of the definite term. Conversely, an insurance product, taken out by an individual, to compensate for the cost of medical and surgical expenses, but only up to the amount covered, is called health insurance.

In life insurance, both survival and death benefits are provided to the policyholder. On the contrary, health insurance provides treatment and medical benefits, in case of illness or accident.

The premium for life insurance can either be paid in a lump sum or periodic intervals, usually quarterly. In contrast, the health insurance premium is paid in a lump sum for the whole term.

An assured amount is paid to the nominee on the demise of the insured or the insured on the maturity of the policy, in life insurance. However, in case of health insurance, no money is recovered, if the term of the policy is expired instead it is reimbursed in case of any health issue. Life insurance is usually taken for a long-term say 10 or 20 years. As against, health insurance is taken for one year.

Key Differences between Whole Life and Term Life Insurance

In Term Life insurance, the policyholder gets insured up to a particular period only. On the other hand, whole life insurance works throughout the life of the policyholder.

In Whole Life Insurance, there is no definite period specified, i.e. it is not known how long the contract will continue. Conversely, in Term Life Insurance the definite time is specified in the contract.

Types of Life Insurance Plan

1. Endowment Plan

This kind of insurance policy is considered to be as the solid one in terms of return. This is one of the reliable methods of saving in which the sum is guaranteed to the insured either at the specified time or at his death.

The benefit of this plan can also be increased by the completion of specific requirements. You can read about all the details here. This cover is known as supplementary cover.

2. Children Education Plan

This plan is going to help your child’s future. In order to make it grow and protect, this insurance policy is well suited for all the parents. It also offers Cash value. On the death of the insured, Assured sum or cash value whichever ever is higher is given to the beneficiaries.

Some of these policy’s receivable can also be used for marriage as well. furthermore, some companies provide education continuation plan too under this policy.

3. Marriage Plans

Its a dream of every parent to see their daughter getting married the way she has always dream off. This policy is going to help you to make your daughter’s dreams come true. You can receive the benefit while you save money under this policy. At the end of the decided term, the holder of the policy will get the sum.

Some companies provide add-ons under this policy.

4.Retirement Plan

Working whole life is not the option and Retirement is something that has to come to everyone. So why not plan your retirement smartly by getting a plan for it.

This plan is going to help you in certain cases i.e. accidental death, sudden death, injury permanent disability. This plan also provides the option of receiving the accumulated cash value and get yourself enrolled for pension plan of life.

How does it work for you?

There are three, major elements of Life Insurance:

1) Death Benefit

The benefit is the amount guaranteed by the insurance company to the beneficiaries identified by the insured upon his death (or completion of policy tenure). The insured will choose the desired death benefit amount based on the estimated cost to cover future needs of dependents.

2) Premium Payment

The cost of insurance (COI) is determined by the insurance company. The premium amount is exclusive of other fee charges. Premium is influenced by the number of factors i.e. age, medical history, occupational hazards and risk propensity. The insurer is obliged to pay premium till the time he expires.

3) Cash Value

Cash value acts as two pointers:

1. A saving account can be attained by the policyholder with cash accumulated on a tax-deferred basis during his life. Some policies have restrictions depending upon the money withdrawn.
2. The second purpose of cash value is to offset the rising coast or to provide insurance as the insured ages.

Why Life Insurance is necessary?

There is nothing like imaging yourself on a death bed and helpless. The worst scenario you can imagine after this is “Your dependents being left with nothing to survive for the rest of their lives” To make sure this doesn’t happen, Life insurance is important for every individual.

This decision of purchasing an insurance policy is going to come handy once you’ll be old or in-case of retirement, it is going to pay-off the huge numbers that you’ll be unable to pay from current cash-flow. Life-saving and the death benefit is one aspect of insurance policy however you’re also going to get money once the tenure of the policy is at its completion.

1. Life Insurance for Children

In the case of Hereditary Risk, Parents can buy a Life insurance policy for their child. In the thought of expecting a long life for their child, parents will go to every limit to make their future secure. The best way is to buy an insurance policy under their name so they can use it when they will need it for their families.

2. Life Insurance for Parents

Life insurance can also be important in terms of investment. You can do this by getting a life insurance policy for your parents. Suppose that the premium of this life insurance policy is going out from your pocket and by making yourself the beneficiary of this policy, you’re going to save is the amount for the longer period of time. This option is considerable when your parents are young in age.

3.Life Insurance for Business Persons

Life insurance policy is also important for business persons. You’re running a business of your own or in partnership and most of the people relies on you. It’s necessary for you to buy a personal Life Insurance policy for the purpose of your business obligation.

4.Starting off with a “Family”

Life Insurance policy can be purchased when you’ve decided to start off a family. In this time, the rates would be comparatively cheaper than the time you get older. Better consider buying it now!!!

5. Marriage

One of the best offers the Life insurance policy comes up with is Marriage plan. In Pakistan, one of the most important things to worry about is ” how we are going to bear the expenses for our child’s marriage” this scenario is mostly applicable to girls. Buying a marriage plan under life insurance is the best thing you can gift to your child and peace of mind for yourself as well.

6. Child’s Education

Education plan under the life insurance policy is also one of the reasons why you should start making up your mind towards this financial product. This plan is going to take care of the finances of your child’s education on which the whole development of your child’s career and life is dependent upon. In Pakistan people usually don’t plan upon the finances that are going to come in their ways as the child grows up. Today he is in school and in the next 10 years, he is in high school and just like that he is standing in front of you and wants to go for a certification which is not pocket-friendly. This plan is going to help you then.

When does a policy lapse? How it can be revived?

It can be paid within a certain period specified by the insurer, from the date of first unpaid premium. It can be revived by paying the premium within the set time period.

Companies that provide Life Insurance in Pakistan.

These are the basic points towards the importance of insurance in an individual’s life. The most important thing you should keep in mind while buying an insurance policy is to get it compared. With so much competition online, it is pretty hard to get your eyes on the right options. Smart Choice is here to make your life easier. Simply log on to www.smartchoic.pk and get your plans compared. For further assistance please feel free to talk to our representative available at your service.

Khurram Zahid

The post Life Insurance in Pakistan: A Fundamental Guide appeared first on Smartchoice.pk.

Dr Salman Zubair mentioned that Pakistan ranked first in Asia and 48th in the world for most deaths caused by traffic accidents. Referring to the World Health Organization (WHO) 2015 Report, he said that nearly 1.2 million people die each year and 20-50 million people suffer non-fatal injuries due to road crashes.

Express Tribune-22 Feb 2019

another one!!!

Around 36,000 people were killed in road accidents across the country last year and therefore, the Motorway police are making all efforts to check such deaths by ensuring adherence to traffic laws by road users

Dawn-News 2019

Following are some of the cases that will help you to understand the need and importance of this product:

1) Yasir is a first-year student at an engineering university. One day he got late for his class due to his puncher bike. He decided to take a bus that takes 10 minutes time to his institute as he approaches towards the bus, the crowd started to run and get into the bus there is no space left. He decided to hang in by holding a stand near the door. Since the bus is overloaded, someone from the bus falls on to him and eventually, he falls off the bus and while falling, he supported himself with his hand on the road. His arm bone breaks due to the pressure of his body. In this emergency he rushes towards the nearest hospital and there he got himself treated and in the end,doctor hands him over a heavy amount to be paid.

2) Mr Ahsan and family have decided to take vacations and travel by road to the northern areas of Pakistan. While they pack their bags and take all the safety measures they don’t know what is coming . While travelling, the weather conditions deteriorated resulting in Landsliding. The car encounters an accident and half of the family suffer severe injuries, the rest of them died on the spot.

3) Umer is an 18-year-old boy and he has gone for late-night studies at his friend’s place somewhere in Defence. At 6 O’clock early morning, he decides to come back home. One of his friends gives him a ride on his bike. On the way back, their bike gets hit by a heavy truck on Baloach Bridge and their Umer got his face scraped on the road badly with friction due to which his face got a severe injury which requires almost 40 stitches to intact the skin back. Whereas his friend got a few scratches on his hands.

In all these above cases, one thing is common. The accidents are unforeseeable and out of human control. These tragedies don’t come free. It does not only cause emotional damage but also big dent to your pocket. To control that, there are some of the reasons mentioned below as why you should consider to get Personal Accident Insurance:

1.Different from the Other Products

A personal Accident Insurance is a product that is going to facilitate your need in the situation of injuries, disabilities and death that is solely caused by an accident.

You might be thinking that why it is different from the other products available with the insurance companies i.e. Medical Insurance. Medical Insurance comes with the limitations on the coverage of accident cases whereas Personal Accident Insurance entirely covers the cases that lie under the accident; Which is sufficient as accidental events can take place to any age group…

Check Jubliee Self Care Insurance for the list.

2. No Panel Restrictions

Thes hardest job after facing an accident is to get the best treatment for yourself/your loved ones. That can be done only in the hospital that you are assured off. Sometimes, Medical insurance imposes restrictions over panel. You can only go to the hospitals that fall under the panellist. Whereas there is no such restriction with “Personal Accident Insurance” You can call the helpline number of Jubliee General Insuranceand can get more information on this matter.

3. No Physical Documents are Required.

Submitting your documents to claim insurance coverage in such a crucial time is a burden of its own. But there is no such demand if you are aligned with Jubliee General Insurance.There is no requirement of physical documents if you are the customer of Jubliee General insurance’s “Personal Accident Insurance”

Criteria to Opt Jubliee’s Personal Accident Insurance

• Eligibility Age: 18-65 years
• Non-Filer Tax: A charge of 4% additional withholding tax on non-filers
• Premium: Premium and limits may vary by plan chosen
• Geographical Limitations : Pakistan Only
• Claims Payment) : All claims will be payable in Pakistani Rupees only

Plans Available

There are 3 types of plans:

• Plan A with a limit of PKR 240,000/-
• Plan B with a limit of PKR 420,000/-
• Plan C with a limit of PKR 600,000/-

This is a basic guide towards the Personal Accident Insurance. For further details, feel free to call SmartChoice for buying this policy or log on to Jubliee General Insurance

Have a safe time

Khurram Zahid

The post Everything You Should Know About Personal Accident Insurance appeared first on Smartchoice.pk.

These are the number of thoughts in your mind which we stated as the questions below which you should check before parking your amount:

Q1.What to understand first?

Insurance is the foundation of good financial planning. With an evolving life insurance market, companies are offering several plans ranging from protection and savings to investments and wealth creation.

Amongst these, term insurance and whole life insurance offer the most basic and comprehensive life insurance coverage respectively. Let us learn about their distinct features and benefits so that you can identify the best fit.

Term Life Insurance

The simplest form of life insurance, a term plan offers a lump sum paid as Death Benefit (Sum Assured). The coverage is available for the limited term of premium payment years. With a low premium and substantial coverage amount, this policy is a must-have. However, there are no Maturity Benefits.

When you shop for term life:

• Choose a term that coincides with the years you’ll be paying the bills and want life insurance coverage in case you die early.
• Buy an amount your family would need if you were no longer there to provide for them. The payout could replace your income and help your family pay for services you perform now, such as child care.

Ideally, your family’s need for life insurance will end around the time the term expires: Your kids will be on their own, you’ll have paid off your house, and you’ll have plenty of money in savings to serve as a financial safety net.

Whole Life Insurance

Whole life insurance offers both, a death benefit as well as savings benefits. The policy lasts for your whole life and you get a lump sum when you decide to discontinue (Surrender) the policy. Whole life plans also offer the flexibility to choose your premium payment frequency and withdrawals.

Although it’s more complicated than term life insurance, whole life is the most straightforward form of permanent life insurance. Here’s why:

• The premium remains the same for as long as you live
• The death benefit is guaranteed
• The cash value account grows at a guaranteed rate

Some whole life policies can also earn annual dividends, a portion of the insurer’s financial surplus. You can take the dividends in cash, leave them on deposit to earn interest or use them to decrease your premium, repay policy loans or buy additional coverage. Dividends are not guaranteed.
Before you buy any of these policies, you need to ask yourself which would benefit you and will fit to your needs.

Contingent upon your necessities, you may need the reasonableness of term life which is frequently utilized for transitory, momentary requirements like your home loan. Or then again, you may lean toward the long lasting security and money esteem that most changeless extra security items offer.

Consider a portion of these key contrasts to choose which is directly for you.

Length of coverage: Some term life insurance provides extra security and gives inclusion to 1-, 10-, 15-, 20-, 25- or 30-year terms, and it’s intended for adaptability. Lasting protection, which incorporates entire life and all inclusive life, is intended for deep rooted money related security, as long as the strategy’s in power.

Cost of premium: At first, term life premiums are for the most part lower than permanent life. Nonetheless, term life premiums regularly increment upon every recharging, while permanent life premiums remain the same.

Cash Value: With most sorts of permanent insurance, there is an investment component known as cash value; the more you pay into your arrangement, the more its money esteem develops. You can trade out or acquire against your permanent life insurance and utilize the assets as required. Term insurance does not collect money cash value since it doesn’t have a reserve funds segment.

Convertible arrangements: In the event that you have a term protection arrangement, you can change over it to a perpetual approach. Permanent life insurance strategies are not convertible.

Death Benefits: Some permanent life protection items pay a demise advantage upon the safeguarded individual’s passing if the agreement and term have not terminated are still on favorable terms.

Which is best for you?

In the event that your primary concern is moderateness, term life coverage begins with the most minimal month to month premium. Term Life 1 even offers a one-year, ensured inexhaustible term.

In case you’re searching for the best generally answer for you and your family, the choice of term versus lasting doesn’t need to be an either/or circumstance. Frequently, the best decision is a blend of the two kinds of protection. The key is finding an answer that coordinates your term and protection needs.

In the event that you have inquiries concerning life coverage, contact you’re nearby Financial Adviser. They’ll be upbeat to talk about your protection needs and arrangements.

Khurram Zahid

The post Life Insurance vs Term Insurance- What’s The Difference? appeared first on Smartchoice.pk.

Two years ago SLIC still had a leading share (57pc) in the pie; today it is divided equally: 50pc with SLIC and 50pc is held by the private insurance companies with varying percentage of market share.

The imposition of an advance tax on life insurance premium would drive away small savers, having an adverse impact on the penetration of life insurance — Javed Ahmed

Asked if that was the case, Javed Ahmed, managing director of Jubilee Life Insurance Co. told that it was indeed so. He presides over Pakistan largest private sector life insurer in terms of gross written premium.

Formerly the New Jubilee Life Insurance Company Limited, Jubilee Life has been in the business for over 18 years as a life and health insurance company. Engaged in both individual life insurance and group insurance business, Jubilee has ventured into several new fields. The company’s initiatives include Bancassurance, Credit Life and Micro-Insurance. The company also started the Takaful business by opening up its Shariah-compliant ‘Window Takaful Operations’ towards the end of June 2015.

Most of the private sector life insurance companies, like banks, have started Takaful alongside their conventional business, hoping to add value and revenue by attracting the segment of the population that is wary of conventional banking and insurance products.

“Jubilee Life has launched 20 – 30 Takaful products through different distribution channels such as Banca Takaful arrangements with the company’s banking partners, direct sales from own branches, and corporates (employee benefits)”, says Javed Ahmed, adding that the results have been encouraging.

“Besides Life, Jubilee is also the largest provider of health insurance in Pakistan”, the company MD tells me and talks about the latest initiative of launching health insurance cover, mainly for the salaried class.” The company is also catering to the lower segment through micro-insurance products, designed to be affordable for the underprivileged section of society.

Jubilee Life Insurance Co. is a subsidiary of the Aga Khan Fund for Economic Development S.A, Switzerland, which holds 57.87pc stake in the company, representing 41.7m shares. Adding the shareholding with associated companies and related parties, the holding company together commands 83.03pc of the company’s capital. The general public holds 8.90pc shares, while foreign shareholders have a 4.71pc stake in the company.

The market price of the Jubilee Life Insurance stock, of a par value of Rs10, which stood at Rs290 two years ago, has currently climbed up to Rs530. The company’s market capitalisation amounts to Rs38bn against the paid-up capital of Rs721m. Total assets of the firm according to last released figures amounted to Rs721m on June 30.

The Jubilee Life MD complains of several measures decreed in the budget 2016-17. These include the imposition of an advance tax on life insurance premium which exceed Rs200,000 per annum.

Mr Javed believes that, although for non-filers, the new measure would drive away small savers, having an adverse impact on the penetration of life insurance in Pakistan, which already is a dismal 0.51pc of the GDP. Life insurance penetration in neighbouring countries such as Bangladesh is 1pc and India 4pc, while in the developed world the penetration goes beyond 10-15pc of the country’s GDP.

The other disconcerting step for insurance companies is the clamping of a uniform corporate tax rate of 31pc on all sources of income; a departure from different tax rates that were applicable for profit on the underwriting business; and considerable lower rates for other sources of income such as dividends and capital gains.

As insurance companies derive much of their income from the investment of surplus funds, the overall effective tax rate had been significantly lower when compared to the current measure; one which will dent the bottom lines of insurance companies. To further add to the burden, the Sindh Revenue Board has withdrawn its earlier exemption and imposed a sales tax on life and health insurance, treating them as ‘services’.

At the ceremony held on Sept 19 by the Pakistan Stock Exchange, Jubilee Life bagged the award of one of the Top 25 Companies for 2014.

For the latest released financial results for the half-year ended June 30, the company wrote gross premium revenue amounting to Rs17.6bn, which was 22pc higher than the premium of Rs14.4bn for the corresponding half year of the previous year.

The combined revenue account of all classes yielded a surplus of Rs1.54bn during the half year, representing growth of 30pc over the same period last year.

The profit after tax for the latest half year amounted to Rs808m, which was 20pc higher than PAT at Rs674m at the same time a year ago. The board of directors have declared an interim cash dividend at Rs3 per share for the year to end on Dec 31.

Khurram Zahid

The post State Life Insurance Company Loses Market Share To Private Insurance Companies appeared first on Smartchoice.pk.