Beginner’s guide to Life insurance in Bangladesh

Introduction: Life insurance in Bangladesh In Bangladesh, life insurance is a popular way to financially protect oneself and one’s family. It is important to know the different types of life insurance and how they work before making a purchase. This beginner’s guide will explain the basics of life insurance in Bangladesh so that you can make an informed decision about what type of policy is right for you.

In Bangladesh, life insurance is a type of insurance that provides protection against the financial loss that would result from the death of the insured individual. It is designed to provide financial security for the beneficiary in the event of the death of the insured.

Fundamentals of Life Insurance

What is life insurance?

If something happened to you and you died, life insurance would give money to your family to help them pay for things like your funeral and living expenses. It’s sort of like an emergency savings account that your family can use if you die.

If something happened to you, like you got sick or hurt, life insurance would help your family by giving them money. It’s like an insurance policy that you have in case something bad happens to you.

The very concept of life insurance:

I was talking with a friend recently about life insurance. I had never really thought about it before, but she was telling me how important it is. She explained that it’s not just for if you die; life insurance can also be used if you become sick or injured and can’t work.

This got me thinking about how I would feel if something happened to me and I couldn’t work. I have a family to support, and I would want them to be taken care of financially if something happened to me. Life insurance gives me peace of mind knowing that my family will be taken care of financially if something happens to me.

I encourage everyone to think about life insurance, especially if you have a family depending on you financially. It’s something we often don’t think about, but it’s so important. Make sure you are prepared for anything by getting life insurance.

The popular types of life insurance in Bangladesh:

The term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, while whole life insurance provides coverage for the lifetime of the insured.

Term life insurance is a type of life insurance that provides coverage for a specific period of time, such as 10, 20, or 30 years. If you die during the term of the policy, your beneficiaries will receive a death benefit. If you live past the term of the policy, it will expire and you will not receive any benefits.

Whole life insurance is a type of permanent life insurance that provides coverage for your entire lifetime.


Financial Aspects of Life Insurance in Bangladesh

The average cost of life insurance policy:

When it comes to life insurance, there are a lot of factors to consider. How much coverage do you need? What kind of policy is best for you? And, of course, how much will it all cost?

While the cost of life insurance will vary depending on a number of factors, the average cost of a policy is $400 per year or BDT 40,000 on annual basis. That may seem like a lot, but when you consider the peace of mind that comes with knowing your loved ones will be taken care of financially in the event of your death, it’s really not that bad.

Of course, the cost of life insurance is just one factor to consider. You also need to make sure you have enough coverage to meet your needs. But if you’re looking for an affordable way to give your family financial security in the event of your death, life insurance is definitely worth considering.

How much life insurance do I need?

This is a difficult question to answer without knowing more about your personal circumstances. Some factors to consider include the number of dependents you have, your income, your debts, and your overall financial goals. A financial advisor can help you determine how much life insurance you need.

Tax rebate in life insurance premium payment

A tax rebate in life insurance premium payment is a way for the policyholder to receive a refund on the taxes they have paid on their policy. This can be a great benefit for those who have a high tax liability, as it can reduce the amount of money they owe in taxes. There are a few requirements that must be met in order to qualify for this rebate, but it is generally available to most people who own a life insurance policy. The rebate can be used to offset the cost of the premium, or it can be used to reduce the amount of taxes owed on the policy.

Life insurance is the wisest option for protecting one’s life while making an investment that has a positive impact on the bottom line. If you start investing in Guardian Life products, you will receive a maximum income tax rebate of 15% life insurance premium with insurance advantages.


Purchasing  options for  life insurance

How do I purchase life insurance in Bangladesh?

There are a few things to consider when purchasing life insurance in Bangladesh. First, what is the purpose of the life insurance? There are many types of life insurance, such as whole life, term life, and universal life. Each type has different features and benefits. Second, how much coverage do you need? This will depend on your age, health, occupation, and other factors. Third, what is your budget? Life insurance policies can be expensive, so it is important to compare prices and find a policy that fits your budget. Finally, make sure to read the fine print before signing any contracts. By doing your research and being prepared, you will be able to find the best life insurance policy for your needs.

Online or Offline purchase is better

For your preliminary idea generation, you can explore online life insurance products available in the market and you can make your short list of products to be considered for purchase. Then you should visit the nearest government life insurance office of Jiban Bima Corporation or any reputed private life insurer or bancassurance for  making the actual purchase. Here is  the JBC office addresses across the country. You should take note of the following points:

  • Policy limit – 5 lacs, or 10 lacs
  • Policy period considering the age, and cover required
  • Payment terms
  • Nominee and his identity card or passport
  • Any rider is added or not
  • Takaful or not 

Concluding lines for life insurance

In conclusion, life insurance is an important tool that can help you protect your family financially in the event of your death. While it is not required, it is highly recommended for anyone with young children or a mortgage. If you are considering purchasing a life insurance policy, be sure to compare different options and speak with a financial advisor to find the best coverage for your needs.

To my view, after marriage, a man should buy at least one life insurance policy covering the death benefits up to a minimum sum insured of BDT 10,00,000.00only.

Praying for you good health.

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