You may not think that life insurance policy protection is an essential component of security, nevertheless it is … for you and for your loved ones! So it’s better to become smart on how the select the best plan for your needs … as a matter of fact many insurances will charge you way too much for security that you do not really need. Review this quick tips on just how to obtain the best life insurance policy protection for you.
If you are approaching a life insurance policy protection plan for the very first time, first gather information about what exists in the market and think what is really important for you and your family. I suggest to consult with a financial specialist too … its’ free, you can clarify doubts and it may add crucial information for your selection. DO NOT go passively, thought, to any insurance company consultant and accept any plan they suggest you!! A strong pre-work will not only save you a large amount of money, but it will help you to understand what it is important to take care of your needs!! Do not try and find shortcuts …
An important aspect in the selection process is the insurance company financial strength. It is of utmost importance that they have an “A” ranking from agencies such as Standard & Poor’s or Duff & Phelps. You must be sure that whomever you employ can get the job done right and will not take you and also your money for a ride.
When obtaining a life insurance policy protection plan, be truthful on all medical checkups or background information. If anything happen and the insurance discovers you provided wrong inputs when obtaining a plan, they can legally deny the protection; which defeat the purpose of acquiring life insurance policy in the first place. Allowing your insurance service provider discover any kind of pre-existing problems could cause a little higher costs but it will for sure allows you to stay clear of concerns with legal cases.
There are mainly 2 broad types of insurance: Permanent life insurance & Term life Insurance
PERMANENT LIFE INSURANCE is a coverage that lasts your entire life and accumulates cash value. Upon your death, the insurer pays your beneficiary a lump sum ‘income tax free’ death benefit. Two variations of permanent coverage are: 1) whole life and 2)universal life.
- Whole Life Insurance offers guaranteed cash value growth, guaranteed fixed premiums and a guaranteed death benefit payout. Upon the death of the insured, the insurer pays an income tax free lump sum death benefit to the beneficiary
- Universal Life Insurance normally allow for a flexible payment plan, meaning that you can control the premium and death benefit, to some extent. It can be considered more than just a life insurance policy, but also accumulate cash value. On the other hand it’s usually more expensive vs. the whole life insurance
TERM LIFE INSURANCE is a policy that covers you for a set period of time: usually 10, 15, 20 and 30 years. Once the policy expires, you may be able to renew the policy on an annual basis.
Generally, the policy premium will increase dramatically once the policy expires or some carriers allow the policy to renew with little change to the premium, choosing to instead drop the death benefit if the insured desires to continue to pay premiums.
Last but not least make sure you have the right coverage you need in your life insurance policy. This will ensure that anyone you leave behind will be taken care of, included your final expenses.
These are quick guidelines about life insurance … If you follow them you will make sure that you are getting the ideal protection for you & your loved ones!
What are your plans on life insurance? Let us know