Price does not really matter when it comes to purchasing a life insurance policy. Buying an expensive insurance policy does not ensure that you will get top notch service. Likewise it is not necessary that you will get pathetic service should you buy cheap life insurance.
Life Insurance
A life insurance policy is taken out to protect family members who are dependent on your salary in the event of your death. If you pass away unexpectedly, the policy will help pay for the financial matters of your family.
Deciding Factors
These questions will help determine whether you really need to buy a life insurance :
- Is your family dependent on your income ?
- Will your family be able to financially manage when you are gone ?
- Have you prepared a will ?
If the answer is yes to these questions, it is highly recommended that you purchase life insurance policy.
Coverage
- Death : To cover the expenses involved in funeral and other costs as well as bills, debts and continuation of family lifestyle.
- Incurable disease : If you are diagnosed with an incurable disease with a strong possibility of dying, life insurance policies can be purchased to cover such conditions prior to and following death.
- Long term care : Many serious illnesses (like Parkinson’s and Alzheimer’s) that require long term and continuous medical care are covered.
- Disability : Permanent disability is covered in a life insurance policy.
Types Of Life Insurance
Level Term Insurance If the person dies during the term of the insurance policy, the beneficiaries will get the unchanged benefit amount.
Decreasing Term Life Insurance
The amount of money due to the family decreases during the term of the policy. It is used to pay off interest on a mortgage.
Renewable Term Insurance
A person can renew a life insurance policy without undergoing a medical checkup.
Convertible Term Insurance
This level term insurance can be converted to life insurance policy or endowment insurance policy.
Increasing Term Insurance
In this type of insurance policy, the amount of money increases in relation to inflation during a specified time period.
Index Linked Term Insurance
The premium of this type of insurance is set against the retail price index.
Affordable Life Insurance
Buy the policy when you are young and healthy
Younger, healthier people have to pay lower premiums for a life insurance policy. It must be kept in mind that death can occur while one is young and terminal illnesses are being diagnosed earlier so you will be doing your family a big favor when you acquire a life insurance policy early.
Get the correct type of coverage
Insurance companies and their salesmen are always trying to sell customers coverage that will generate profit. You should get coverage that fits your lifestyle and budget.
Review your policy
This is especially useful when any change has taken place in your personal situation, such as a birth or death. Your premium price will change based on these circumstances.
Have your policy ‘Written in Trust’
In case of a claim, the insurance money is promptly given to the beneficiary to save a substantial amount on inheritance tax.
|
