So you have finally decided to sign up for a life insurance policy? Before you purchase any insurance policy, here are some of the things you need to take into consideration.
Your insurance needs
Everyone insurance needs vary. Some people want an insurance policy in order to help their children, spouse, and kids when they are no more. Some want it to cover only their burial expenses. Regardless of your needs, we strongly advise you to seek the advice of your financial planner or contact us for further advice.
Your present insurance policy
An evaluation of your current policy can help you make the right decision when you want to purchase a new life insurance policy. Also, you may want to cancel your existing policy. It is therefore crucial that you already have a new policy before going ahead with the cancellation of the policy.
The amount of coverage you need
The amount of coverage you you want is also important. Do you want your coverage to cover only your kids or all members of your family? The more people you include in your coverage, the more premium you would likely pay.
The type of insurance policy you want
You also need to consider which of the different types of life insurance would be the most ideal for you. There are various types of life insurance policies such as term life insurance, whole life insurance, and variable life insurance. Each of them has their pros and cons. Therefore, it is advisable that you weigh the advantages and disadvantages of each policy before you sign up the contract.
The amount of premium you will pay
Just as whole life insurance is generally more expensive than life term insurance. And if you want additional coverage, you will have to pay more.
Your age and health status
Your age and health status speaks a lot about whether you can get insurability. If you have any terminal illness, insurance companies may not approve your application. For term life insurance, you will pay less premium if you are young. But for whole life insurance, you will more premium if you are young and vice versa.