Beside your
investments, life insurance is the essential part that you never ignore. It’s
not only secure your family’s future after you, it also gives you other
benefits like tax relief, cash back (for investment based life insurances) and
many others. Now a day, everyone knows the importance of life insurance and
secure his/her family using it. But unfortunately, the majority of the people
spend lots more than the actual cover amount and invite lots of financial
crisis in his/her yearly budget.
The main reason of
this is – buying insurance without justifying it. There are several factors
involved with life insurance and you must check all the aspects before buying
it. If you ignore a single little point, then it is quite possible that, you’re
in serious problem. No matter whether
you’re an absolute beginner, or already buy the life insurance previously, you
must start your research process by comparing the life insurance quotes.
If you go through
the financial guides, website and Blogs – nearly every blog and website suggest
you – “life insurance quotes comparison”, but the problem is – there is no
clear guide about how to compare them? OR things that, you have to consider
during the comparison? Okay, when you do that using web services, that time,
the software will do that for you. But this is not the answer. You must know
the key factors that are involved with life insurance comparison.
Elements That You Must Include During The Comparison
Actually, there
are four key factors are involved in life insurance comparison. No matter
whether you’re doing a manual of an automated comparison – the factors are
remaining the same. However, here are the key factors –
Number #1
The Cost of
Coverage Mount (Insurance Premium)
Insurance premium
plays the most important role in any insurance and life insurance is not beyond
of that. In real time, you’ve to pay a small/moderate/high premium according to
your insurance coverage, i.e. The face value of your life insurance depends on
your insurance premium.
There are two
factors involved in insurance premium selection. First of all, don’t choose
high insurance face value because it comes with large monthly/yearly premiums,
additionally it surely affects your monthly and yearly budget. On the other
hand, according to your income (job/business) you must choose the insurance
type. Based on insurance type, the premium terms will be determined. If you’ve
a regular monthly income, then term insurance is best for you, because you can
pay the premium and renew the policy regularly. Whereas, business owners and
self-employed persons, permanent life insurances are the best option.
Number #2
The Type of Insurance
Usually, life
insurance comes with three different types. They are –
1.
Term
insurance (you’ve to pay regularly to continue your life insurance)
2.
Permanent
insurance (you’ve to pay one time or few times and enjoy the lifelong
insurance)
3.
Universal
life coverage (a hybrid insurance - combination of Term and Permanent insurance)
Number #3
The Type of Coverage
Not necessarily,
all life insurances come with the same face value and other benefits. All life
insurance offers death benefits, but you can also look for other features like
– disability coverage, income protection coverage and many others.
Number #4
The Exclusion
Points
The exclusion
points may vary from one company to another. So, it is a good idea that, check
the policy that comes with minimum exclusion points.
Finally, keep in
mind that, your target is – getting the maximum benefits with affordable
insurance premium. So, stay away from so called “cheap” life insurances, find
something reputed and keep insured and secure your family.
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