Buying life insurance is a tough task but that does not mean that you will postpone it. We will give you tips to make this daunting task easy. In fact today, there are a number of insurance policies customized to fit your individual needs without burning a hole in your wallet.
Life insurance can be used to
- pay off a mortgage,
- help family members in case the breadwinner is unable to provide – Life assurance
- Invest and save – Ulips etc.
- plan for retirement – Retirement Plans
- Pay for medical expenses – Health Insurance
- pay for your child’s tuition – Child Insurance and
- Prevent tax penalties when transferring an estate to your loved ones.
While some experts argue that life insurance is only a benefit to the wealthy it is not the case. Only 20 percent of permanent insurance policies are owned by them. One must always remember as mentioned above, Life insurance can be a safety net for families, especially if the primary breadwinner dies.
One needs to take these personal financial questions into account before purchasing a life insurance policy:
- Who relies on you financially?
- How much is enough?
- Should you purchase a term policy or a whole life policy? Term life insurance provides coverage for a set number of years (10, 15, 25 or 30 years) and when the term is up, you have to renew the policy for another term. Whole life insurance provides coverage for your entire life and the cost of the benefit increases as the policyholder ages.
- Can you afford it?
- Have you researched the company or broker you would like to work with?
- Has your customer care representative/agent created a needs analysis tailored to your lifestyle?
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