To really understand when we should do or purchase certain things, we must first understand the reasons why we have to do so, the reasons compels us to act upon fear of the unknown, factors that must be considered to give us a clearer understanding are usually not considered. Here there is several important factors that must be considered before we make any purchase of life insurance.
Life Insurance is something that everyone needs, it can provide such peace of mind when it effectively protects your family with the proper funding and help necessary when you are gone. Your death should not only leave your family or loved one in a state of sadness and depression, it should also give them something to help them, keep them in your mind and insure yourself and your loved one with life insurance.
You Have To Satisfy Certain Specific Requirements If You Want to Insure Someone
You can definitely buy life insurance in someone’s name. However, you must prove that you are in any way dependent on this person and you would suffer greatly if he or she were to pass away. Along with that, you will need the said person’s permission. This is because Life insurance companies must access the medical record history of someone who is interested in being insured. The person must usually sign a written consent form to release their medical records. Sometimes the insurance company may not require this kind of consent. Usually honest medical history must be disclosed.
If Anyone Turns You Down For Life Insurance, Look Somewhere Else
Many companies look at a whole host of information and use many critical methods to carefully select who they will insure. Just because a provider declines to insure you, you shouldn’t have to assume that other providers will do the same. Look for others, there will be one that will be interested to insure you. This can be applied to almost any aspect in life, if you don’t get a job at that specific company, look elsewhere.
If You’re Interested In Getting Yourself Insured, Be Sure That You Actually Need It Before Making The Purchase
If you are on your own and no one else depends on you financially, in addition to that, having enough money for all of your final expenses, it’s a safe bet that you are not in need of this type of particular insurance. However, if you have people who depend on you, a spouse, children, siblings, parents, etc. Life insurance will be an expense that is worthwhile. It may not be an investment but think of it like an investment.
Choosing Between Term Life Insurance Or Whole Life Insurance
Understanding the two categories of life insurance will help you insure yourself with the right plan, in coherence with your income and what you can afford and what you need at this very moment. Most importantly, you can always chance it later to a better and more suitable one. With that being said, there is two types of life insurances, term and whole. You should definitely spend some time studying these before making a choice.
Term Life Insurance
Term Life Insurance usually has lower premiums associated with it, it provides a person with coverage for a set amount of time, it also does not build up cash value that can be withdrawn or borrowed. If you are young, and you need insurance now but can’t afford the whole thing, perhaps considering a term life insurance for the time being, or if you are older, maybe getting a term life insurance for a specific time for its specific reasons.
Whole Life Insurance
Whole Life Insurance usually costs more, it also accumulates cash value that can be withdrawn or borrowed. It pays out whenever the insured has passed away, only provides protections as the premiums are paid. The whole package, if you can afford it, this is the one to go for, it provides more protection for more reasons and it also allows cash to be withdrawn whenever you need it.
Your Beneficiary Does Not Have To Be Financially Dependant On You
Some people out there get life insurance so that when they pass, they make a great generous contribution to charity. Some people may be able to afford to give a large amount to charities, however with life insurance, it gives you the opportunity to do so, you’d be helping so much more people who have so little to live with. Of course you can also help your family, but if you don’t have one, remember we are all families too, even if we aren’t related directly.
If Your Beneficiary Is Dependant On You, Determine Exactly Which Sources They Are Dependant From You And Needs To Be Covered When You Can’t Cover Them
Your loved ones may rely on the income you generate, with life insurance you can replace this easily, not only that, you can also provide them with extra to help them relocate themselves or even to pursue higher education for their future benefits. Giving them an opportunity to move forward in their lives instead of getting stuck in a situation that is incredibly hard for them, let them live their dreams.
Remember To Calculate Important And Day-To-Day Expenses While Calculating Your Coverage Needs
It is really important to take everything into account when calculating your coverage needs, these include expenses like, mortgage, tuition, or even daycare. Usually people either forget or don’t factor in burial cost or estate taxes, these are important as well. Including long term expenses which work towards goals, college, or even retirement savings, etc.
Life Insurance Is Not An Investment
Though many life insurance accumulates a cash value over time that you can use for your own benefits, you should probably go against that, the returns won’t be as good as a mutual fund. If an Insurance Agent persistently persuades you, ask for a guarantee to be put into writing. It is not for investment but it is an investment for protection, which mainly happens in the future. An investment where you know the outcome already.
Know What Is and Isn’t Covered By A Life Insurance Policy
Some Life Insurance, only pays out within certain conditions, conditions that will not include death by war, military service, suicide, etc. So before getting life insurance, understand and find out what it covers and what it does not cover, you should know what you are protected for and what you aren’t protected for. Just in case something does happen, you know you can lean on something for support.
Educate Yourself About The Many Purchase Options Or Riders That Can Be Added To A Standard Policy
If you are not interested with the basic and mundane life insurance policy that is offered to you, you are probably able to attach additional benefits to it, though this will come at an additional cost. Riders may allow you to do this, this will be pretty beneficial, however it will depend on the situation you are in. You should definitely read up on this before making the final purchasing decision.
Talk To Your Family And Friends If You Need Advice And Recommendations Regarding Insurance Companies And Agents
This is a very useful piece of advice, if you are not sure on which insurance company or agent to choose form, you should consult with your friends, family and of course external sources that can be trusted well. This can always be used for other situations, whenever you need supportive and trustworthy people to talk to, you can always go to your friends and family, ones that understand you and knows what is good.
Make Sure Companies Or Agents That You Are Considering Are Licensed In Your Country Or State
This can very well be accomplished by checking with your particular state or country insurance department. This is important to not be scammed in any way possible. There are many scammers going about these days, and to be safe make sure the insurance company is a licensed one. It is also important to do this to know that you will actually be protected after getting yourself insured.
Be Prepared To Answer Some Questions About Your Health
Do not be surprised if you are asked these questions about your health. Most insurance companies will very much like to know these details before making a decision if they want to insure you with life insurance or not. Be honest and truthful, if you provide false information, it may cause your policy to be cancelled, and from this it will result in your beneficiaries to not receive their benefits.
Carefully Consider All Aspects Of The Premium Payments That Are Attached To A Policy
Always ask yourself before making a purchase, whether you can afford the initial premiums, or if the premiums increases later, will you still be able to afford it in the future. You should always know what you can afford with your income, do not go into unnecessary debt that you may not be able to pay back and that will make everything worse, life insurance is supposed to help you not make everything else harder.
Make Sure You Understand The Renewal Policies Related To the Plan That You Are Considering
Renewing term insurance policies for additional terms are possible; however it might be possible for your premiums to increase for each and every renewal. In order to avoid this confusion, ask your agent what will happen when you renew your policy, mainly if your premiums will increase. This is another financial advice to help you understand that there are possibilities that your premiums may increase with each renewal. So don’t be too surprised and ask.
With all these things considered, then you will be ready to purchase life insurance. With Manulife’s ManuProtect, they offer the most affordable term life insurance at only RM 5/month. It will solve all your problems on life insurance, and costs almost nothing! A great life insurance for yourself and your family.