Being a first-time life insurance purchaser can get really tough. I remember taking so much time to scout for the perfect insurance policy for me. I found it extra difficult to purchase one because I had no clue about the technical terms or how to check if a company or a plan is “good” or not. Thankfully, a friend guided me through the whole process and explained to me a couple of things. Now, I feel like it is my turn to do that for you. Here are some of the things you must remember when looking for life insurance.
1.) Know how much coverage you need. “Coverage” is the term used to refer to the amount your beneficiaries get when you pass away. This is what you pay for but is not equal to the sum of all your payments; it is usually larger than that. How do you know how much coverage your family would need? Remember that they are to receive this amount of money when you pass away. So, compute your debts, your estimation for funeral fees, and about six months worth of your monthly income. This should be a god starting amount. Usually companies suggest an amount for you based on your job, hobbies, health, and age. You may check a life insurance calculator online to get an idea about this.
2.) Know how much premium you can afford. The “premium” is the term used to refer to the amount of money you are required to pay the insurance company. Most people pay premiums on a monthly or bi-monthly basis. However, some choose to pay quarterly or annually. Usually, quarter or annual payments cost less than monthlies.
3.) Know more about the company. Do you think the company will still be around when you pass away? Do you think they will be able to pay your beneficiary the promised amount if you pass away, 20, 30, or 40 years from now?
1.) Know how much coverage you need. “Coverage” is the term used to refer to the amount your beneficiaries get when you pass away. This is what you pay for but is not equal to the sum of all your payments; it is usually larger than that. How do you know how much coverage your family would need? Remember that they are to receive this amount of money when you pass away. So, compute your debts, your estimation for funeral fees, and about six months worth of your monthly income. This should be a god starting amount. Usually companies suggest an amount for you based on your job, hobbies, health, and age. You may check a life insurance calculator online to get an idea about this.
2.) Know how much premium you can afford. The “premium” is the term used to refer to the amount of money you are required to pay the insurance company. Most people pay premiums on a monthly or bi-monthly basis. However, some choose to pay quarterly or annually. Usually, quarter or annual payments cost less than monthlies.
3.) Know more about the company. Do you think the company will still be around when you pass away? Do you think they will be able to pay your beneficiary the promised amount if you pass away, 20, 30, or 40 years from now?
No comments:
Post a Comment