Buying a life insurance policy is not something you should enter lightly. It is the final thing you will be carrying out in this life, so you must ensure it is done correctly. You do not want to leave your loved ones with a mess to clean up that could cost them some of their hard-earned money. Plus, you do not want them to have to foot the bill for your final preparations.
A good life insurance policy is the only way to ensure that none happens. One that covers all the expenses you are leaving behind, plus a little more to help the family. But how do you ensure that your policy is good, and how do you know if you are getting what you need? Ask questions if you are dealing with a live agent, and check the offers if you are going through an online platform.
Let’s look at 5 questions to ask before buying a life plan. The ones that can make a significant impact on the plan itself.
- Do I Really Need Life Insurance? There are only a couple of instances where you would not need any life insurance. Otherwise, you should always carry a policy. Even if you have a small one through work, you should secure another one that covers what the smaller one does not. You never want to leave your loved ones stuck with the bills associated with your final wishes. It is hard enough for them to deal with your loss. They do not need the extra burden of digging into their savings to deal with everything. The earlier in life that you get coverage, the cheaper it will be.
- What Types Are Available, And What Should I Get? What is life insurance? It is a policy that can cover you for various circumstances that may arise throughout your life and after you have passed on. There are a few options for you to consider. The type you get is basically whatever your preferences are and how much money you have left over every month that you can invest in a life insurance policy.
- Life Coverage – This is the type that you are most familiar with. It gives your beneficiary a lump sum to cover your final costs and can give extra while they cope with your loss.
- Income Protection – Thie policy will replace up to 85% of your income lost if you cannot work due to one of the covered circumstances.
- Trauma Coverage – This is a lump sum amount paid out to you if an illness should strike, which allows you to focus on your recovery.
- TPD Policy – This is a lump sum given to you if you become permanently disabled to help you cover medical costs and other bills.
- Funeral Insurance – As it says in the title, this is a lump sum given to your beneficiary to cover your funeral expenses.
- Accidental Injury – Covers you in the case of an accidental injury or death.
- How Much Life Insurance Should I Get? This is a tricky question because a lot of this decision will be based on what you want to leave behind. If you want to leave a substantial amount for your loved ones, you would want a higher-paying policy. The best rule of thumb to follow is to take your annual (yearly) income and multiply it by 10. That is the minimum amount for the payout that you need.
- Can I Upgrade The Policy If Things Change? Most term life insurance policies will have a provision added to them that will allow you to trade your current policy for a better one without losing any protection. The new policy will cost you more, but that is to be expected when you upgrade to a better plan that pays out more if your loved ones ever file a claim.
- How Do I Know If I Am Getting The Best Policy? You will want to go onto an online comparison platform, such as the one on the iSelest website. They will take some of your information, and the platform will send you numerous offers from some of their partners that would be willing to work with you. Go through the offers and find the one that fits your needs the best and works with your budget.
These five questions you should ask before buying life insurnace will ensure that you get what you need, at a price you can afford. Remember that the cheapest policy may not always be the best. Check out the details and any exclusions they have added to the offer. Once you are sure that the policy is good, go for it and never look back.