Looking to purchase a life insurance policy for yourself, friends or family members? Here are some essential things you need to know about life insurance. A knowledge of these will help you in making the right choice.
Life insurance policy is a contract
When you decide to file a life insurance policy, understand that it is a contract between you and the insurance company you have chosen. With this agreement comes different roles for each party. You must pay your premiums when due, while the company pays out your claims in the event of death.
There are many types of life insurance
Though there are various varieties of life insurance, two are widely known. One is term insurance which is the least expensive and most widely used, and permanent insurance which is more high-priced. While term insurance gives you coverage for an agreed period, permanent insurance covers you for the period you pay the premiums.
Your claims can be turned down
Most life insurance companies are said to be fair when paying out claims. However, your insurance company could turn down your claim if they suspect fraud. Ensure you disclose every detail about your health – no matter how minor – when taking out a policy.
Life insurance is always cheaper for young people
Unlike older persons, young people pay a more affordable premium. If you are below 22 and yet to get coverage, it is imperative you do so. If you encounter health challenges before you apply for coverage, the company may deny your application entirely, or premiums could increase. For more advice, you can contact us or your insurance agents.