Buying life insurance in Bangladesh often feels less like financial planning and more like an obligation—something you buy because a relative is an agent or because you need a tax rebate. But this casual approach often leads to policies that drain your wallet without protecting your family.
Step 1: Start Young
The most common mistake people make is procrastination. In your 20s, you feel invincible. In your 30s, you have other expenses. By your 40s, when you finally feel the “need,” the premiums have skyrocketed.
Lock in a policy as soon as you start earning. Premiums are calculated based on age and health. A policy bought at age 25 can cost 50% less than the exact same policy bought at age 35. Treating insurance as an “early career” purchase rather than a “retirement” purchase is the smartest financial move you can make.
Step 2: Count the Coverage, not just Premium
Most people decide how much insurance to buy based on how much they can afford to save monthly.This is backward. Instead calculate your Replacement Income Need. If you pass away, your family loses your annual income for the next 10-20 years.
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The most common mistake people make is procrastination. In your 20s, you feel invincible. In your 30s, you have other expenses. By your 40s, when you finally feel the “need,” the premiums have skyrocketed.