An integral part of planning for the future is implementing life insurance for yourself. We already know the benefits that life insurance offers, but the buying process can be a bit tricky and complicated too. This guide aims to lead you to a wise buying decision for your new life insurance policy!
Here are tips and tricks to make sure you get the perfect product that meets your needs and within your budget!
- Understand your needs
Your financial situation is different from the rest of us. This is also true when we talk about life insurance products. In order to purchase the perfect life insurance, always make sure to check your entire financial situation. Review your income and expenses as well as your outstanding debts to various lenders. Other considerations are hospital bills, funeral costs, and income replacement that all need to be taken cared of when you die. Once these are addressed, you can then narrow down your choices on which specific product to sign up for.
- Term vs Permanent Insurance
Making an informed decision about life insurance is all about knowing which between term and permanent insurance better fits your needs.
Term level insurance is a policy that offers protection for a preset period of time. Basic term insurance lasts for 10 years, whilst there are those that mature after 30 years of being in force. In some instances term insurance offers adequate coverage to pay off all major debt. On the other hand, if you wish to get more out of your policy, permanent life is best. It accumulates cash value. Policy owners can borrow against the cash value, and is to be repaid on a tax deferred basis.
- Talk to an insurance broker
An insurance broker has full access to life insurance products from various providers. Insurance brokers are crucial in decision making as they offer all the information that you need to make an informed decision. Make sure to get in touch with an independent broker as they can give you quotes from multiple insurers, so you can select the one that fits your needs and budget too!