Is life insurance better or social security insurance?
Maybe you have also wondered what is the best way to save in this economic situation; And which form of savings in the coming years or retirement is a better and more reliable support?
In this article, we want to compare life insurance and social security insurance. But before that, you need to know that these two forms of insurance have major differences and their nature is largely different from each other.
What is life insurance?
Life and investment insurance can be considered as a type of investment with a guaranteed profit, which in addition to the investment profit, also includes many covers such as death, dismemberment, disability and even certain diseases. Life and investment insurance is a complete insurance with different coverages that the policyholder can choose the desired coverages according to his desire.
But social security insurance is for all working people and according to the labor law, all working people must have this insurance policy. The social security insurance premium is determined by the Ministry of Labor every year. This insurance premium must be paid to the social security organization for up to 30 years, and the holder of this insurance can only use the simple medical coverage of this insurance policy during this period. After paying premiums for 30 years, a person can receive a pension.
The main differences between life insurance and social security insurance
Social security insurances are usually therapeutic in nature. But it can be said that life insurance can complement social security insurance.
There is almost no age limit in getting life insurance. From a one-day-old baby to a seventy-year-old person, they can get life insurance.
In life insurance, a person can choose the amount of insurance premium and how to pay it (monthly, annually or even quarterly) at his discretion.
In social security insurance, you receive a medical record and your normal medical expenses are covered. But in life insurance, only certain diseases (heart and brain stroke, open heart surgery, transplantation of major body organs, types of cancer) are covered.
In life insurance, interest will be added to the paid insurance premium, but social security insurance does not have this feature.
Life insurance can be redeemed at any time. This means that after 10 years of paying the life insurance premium, a person can receive his savings plus interest, or apply for a pension. But in social security insurance, a person cannot withdraw his savings earlier than 30 years old.
In life insurance, after one year, you can get a loan of up to 90% of the savings without the need for collateral or guarantor.
In life insurance, if the insured is completely disabled due to an accident, he no longer needs to pay the premium and if he has chosen disability coverage, he can also receive a pension.
It is up to the individual to choose the beneficiaries of the insurance policy. A person can choose his beneficiaries and in case of death, they will receive death capital without exclusive inheritance.
Social security insurance pays a very small amount to his survivors in the event of a person’s death; In the case of life insurance, in case of death of a person, even if he has paid an installment of the insurance premium, apart from the payment of the death capital, if the death is due to an accident (in the case of purchasing the coverage of death due to an accident), up to 3 times the death capital will be paid to his survivors.
Life capital and savings paid in life insurance and future insurance, whatever the amount is, are exempt from tax and will not be subject to inheritance tax in case of death of the insured.
Is it cost-effective to get life insurance?
Maybe in the short term, investing in banks seems more attractive, but for this you need to invest a lot of money in the bank first to get a significant profit.
But in life insurance, it is enough to pay only one premium to be covered by insurance.
If you want to go from a small investment to a decent savings over time, life insurance is right for you. But if your goal is to receive more interest in the short term and quick liquidity is important to you, then depositing in a bank is more suitable for you.
Which life insurance is more suitable?
The right life insurance and its selected coverages are different depending on the circumstances of each person. For example, for children, it is better to choose investment coverage than illness coverage or accident coverage. To compare life insurance in different companies and plans, you can enter your information on the insurance market site. After that, the conditions and coverage of different insurance companies will be displayed for you, so that if you intend to buy life insurance, you can make the best choice by comparing them. You can also call 02191311100 extension 210 to get free life insurance advice.