Purchasing a life insurance policy can be a very personal experience and is a very important decision. It can also prompt certain questions right from deciding the amount of coverage you want to name your nominees and so many more. There is a lot of thinking involved when getting life surface from life insurance companies.
Below listed are some of the important questions you must consider when choosing a life insurance policy -
1. How much life insurance will I want?
The amount of life insurance you will need depends on a variety of factors. You will have to start by listing down your current financial obligations like childcare expenses or an existing mortgage or debt. You should also consider the comprehensive future needs of your family like retirement funds, education costs, etc. apart from these considerations, you will also have to choose the length and type o the policy and enquire about the life insurance quotes. This way, you can get an estimation of the type of life insurance that will be right for you and your family.
2. What type of policy should I purchase?
There are two choices available for you - whole life insurance and term life insurance. With a term insurance policy, you have the liberty to select the amount of time and coverage and the premium payments remain constant over the entire term. With whole life insurance policy, you can get a lifelong protection as long as you pay the premiums. This allows you to build cash value. The best way to determine the type of policy that works the best for you will depend on your personal circumstances and financial goals.
3. What is my medical history?
You may be completely fit and fine. But you will still require your health record for the initial assessments. You need to get the facts related to your health history in place because you will be asked about them by the insurer. The standard life term policy covers death by any cause and at any time, but death by suicide within the first two policy years is an exception to that.
4. What will happen if I miss a payment?
As per the Life Insurance Companies, your life insurance coverage may lapse if you miss a premium payment on the term life policy. However, there are a few options available if you are not able to pay the premium on the whole life insurance policy. You can use the cash value of the policy towards the premium that will ensure that you are covered. Some policies also allow you to temporarily reduce or stop the premium payments. For these options to be available for you, your policy should have enough cash value accumulated to cover the payment amount. If you are unable to access these options and cannot pay the premium, high chances that your policy can lapse.
Life Insurance companies do have race period to prevent the policy from lapsing in case you are late on the premium payment. This grace period is determined by the country or state regulation and also varies from insurers to insurers and policy to policy. You must ask the life insurance company to know what your grace period is and how and when can you pay the missed premium.
5. How can I get the best price?
You can compare life insurance quotes with multiple insurers. The prices will vary significantly and that can be compared on the company websites. A lot of companies offer flexible payment option which allows their customers to pay monthly, quarterly, semi-quarterly or yearly premiums. This makes term life insurance the most chosen insurance plan.
The bottom line -
It is important to make sure that you get the best coverage against your life insurance plan. Asking the above-mentioned questions upfront will help you make the right decision.
If you are planning to get the life insurance plan from Life Insurance Companies, they are here to assist you. You can ask them any question you have in mind and they will be happy to answer them along the way.
So, what are you waiting for? Secure you and your loved one’s financial future with a life insurance policy of your choice from Life Insurance Companies.