Everything You Need to Know About Life Insurance
I have term life insurance with endowment plan, I do not have whole life insurance. The term life insurance policy I have has a 25-year maturity period. During the insured period, I will receive compensation against accidents and terminal illnesses. Once the policy matures, I will also get back my insured amount. I find this insurance policy very useful. Well, the money I pay for premium can be invested in stocks and get better returns but with stock investment I don’t get insurance coverage. Term life will not only give back my money with some bonus but also provide coverage. The money I get back can be used for investments, debt repayment, starting a business, or buying a house.
Benefit of Insuring Yourself
Insuring yourself has a lot of benefits. You can not only get a safety net for yourself but also for your family. Self insuring is something like establishing an emergency fund for unforeseen events like accidents, illness, etc. If you are not able to save money, insuring yourself can also work as your personal savings apart from giving you financial coverage during your difficulties. In worst case scenario, your family will benefit from your insurance. Your insurance will help you even when you die. If you need money immediately, insurance can also come to your rescue, you can get a loan against your insurance policy.
Why Life Insurance is Important For All Ages
Life insurance is important for all ages, whether it is a kid of 1 year old or a senior citizen of 70 years of age. If you are getting life insurance it is important to get in the early age because your premium cost will be lower and your benefits are higher. Some people consider insurance to be a financial burden because depending on the policy you will have to pay for many years (term life) or life time (whole life). Let’s s you bought a 20 years term life insurance policy, now you will have to pay the premium for 20 years, or if you bought a whole life insurance at 30, you will end up paying premiums until you live. Paying premiums is certainly challenging, however, the benefits are simply great.
Can You Get Enough Health Coverage From Your Life Insurance?
Health insurance provides you coverage for your healthcare costs, for instance you can reimbursed for your consultation fees, surgery charges, tests, medicines, etc. Life insurance provides coverage for major diseases, major health care services, disability due to diseases or accidents, etc. Generally speaking, life insurance also provided coverage against health risks, therefore, sometimes if you are unable to buy multiple insurance policies you might avoid health insurance if you already have life insurance. However, if you need frequent health care services, if you are under medication, it is very important to have a separate health insurance to get all the benefits of health coverage.
How To Determine Your Insurance Premium Cost
You want to buy a whole life insurance or term life insurance. How do you determine the monetary value of the insurance you are buying, I mean how much money should you insure for your term life or whole life. Let say you are insuring your house or a car, how do you determine how much coverage should you get. Well, the protection amount is determined by various factors. For life insurance, your age and health conditions are most important factor, and for non life, the condition of the subject is important. How much premium you should be paying depend on the value of your insured item and the coverage you choose. You pay more for full coverage, and pay less for partial coverage.
How to Get a Comprehensive Life Insurance Policy
Insurance policies are nothing for a product sold by insurance companies. Just like other businesses launch new products or offer multiple products, insurance companies also launch multiple products, usually with similar benefits but in different names. However, no matter what kind of insurance policy you are buying you need to make sure it offers maximum coverage. For example, if you are buying life insurance policy, you need to make sure it offers comprehensive coverage. For example when you buy term life insurance, try to see if they offer compensation for accidents, diseases, disability, etc. In case they do, you might not have to buy a different health insurance
Things You Should Consider While Buying Term Life
Term life insurance will provide coverage for a specific period of time, it will be valid as long as you are paying your premium until it matures. There are many benefits, and the most evident one is you get your money back after the maturity. So, what do you think you should remember while buying term life insurance policy? You need to check whether your term life insurance policy provides coverage against accidents, major diseases, disability due to accidents or diseases, etc. Also make sure if it also provides compensation for major healthcare costs. You also need to see how that give back your money, either the whole amount or partial payment on a regular basis.
How to Choosing Between Term Life and Whole Life Insurance
Generally speaking, there are two types of life insurance, one is term life and another is whole life. If you want, and if you can afford, your can buy term life as well as whole life as both of these policies are good. That’s because term life protects your life and whole life supports your family. However, if you cannot buy both insurance, and have to choose one, what do you think is better? Well, if you are young and single, term life is good for you, however, if you are middle-aged and have a family a whole life insurance policy is more important for you.
Do You Have Dependents? Get a Whole Life Insurance
Whole life insurance is for those who have dependents like children or spouse. This type of life insurance policy helps the dependent manage expenses after the death of the insured person. If you are a single and have no dependents, you do not need whole life insurance, but if you have spouse and kids and want to ensure that they get financial support after you are gone, whole life insurance is for you. Your surviving family members will get the benefit from this insurance, thus, making it ideal for those with families. While having a term life insurance can also help people who have dependent as the beneficiary can get the benefits on sudden death, but it this policy only covers for fixed time and once it matures, you will no longer be ensured and you will have to get another policy to get insurance policy. You can even get back your insured amount upon maturity. With whole life insurance you are required to pay premiums all your life, but interestingly your premium is fixed and it is comparatively lower.
What Kind of Term Life Insurance Policy Should You Buy
Term life insurance has a fixed term, let’s say 10 years, 20 years, etc. Some insurance companies have fixed premiums for term life insurance policy and some companies have variable premiums, which either lowers as you go buy or increases as you go by. Depending on the company, term life insurance can be various times. The most common one is you insure for a certain amount for a certain period and pay premiums until it matures. During the insured period, you can claim if needed, other wise, you get back your insured amount after maturity. Some term life insurance policy works like pension plan, after the maturity, instead of getting back your all money, you will receive certain amount every month for rest of your life. Some term life insurance policy gives back some percentage of your premiums you have paid in a regular schedule and then remaining funds after maturity. If you die during the insured period, just like whole life insurance, your dependent will receive the benefits and the good thing is there will be no need to pay remaining premiums.
Buying Big Insurance Policies
It is easier to buy non-life insurance policy. For instance, if you want to buy home insurance, insurance agent will evaluate your property will propose coverage based on the financial value of the property. When you want to insure your car, the value of your car, your driving ability, age, etc. will be analyzed to determine the covered amount and premium you have to pay. However, when it comes to buying life insurance policy, it will be quite challenging to come up with the exact amount you need to insure for. It is not easy to determine whether you should get $100,000 term life insurance or $1 million term life insurance. One of the most common criteria insurance policy uses is to determine your income level and check whether you can pay the premiums or not. For instance, obtaining a high-value insurance policy, like a million-dollar term life insurance, requires you to pay high premiums. So, companies will check your financial ability to pay the premiums. In our country, there is a minimum amount for insurance where you do not have to show your financial documents but for higher amounts, you need to show your income level. Therefore, while buying big insurance, it is important to choose an amount that matches with your ability to pay premiums on time.