Life insurance policy is a contract between the life insurance company and the policy holder that pays out a sum of money either on the death of the insured person or after a set period. Life insurance provides you and your family the financial security and certainty to deal with the after effects of any unforeseen or unfortunate event. There are generally 2 options of life insurance: TERM LIFE INSURANCE and WHOLE LIFE INSURANCE.
Term life insurance
You pay a premium every month, quarterly or half-yearly for the period of time you wish to be covered, and if you don’t use the insurance in that time period, there will be no pay out. In other words no accident- no benefit. Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.
Whole life insurance
– This is a policy that remains in force for the insured’s whole life. In this case either you or your survivors are guaranteed to receive a pay out from the insurance as long as your premium payments are regular.
When you’ve got a spouse or kids, you need to make sure they’ll be financially secure if you’re not around — without diverting too much money from other goals like retirement or college savings, finding a cheap life insurance policy that offers the right amount of coverage is a main concern of any first-time buyer. For either term or whole life, the following factors can impact how much you pay:
- Overall health
- Family history
GET SEVERAL QUOTES
It is time- consuming, however with the help of online insurance quote tool, you will be able to get quotes from reputable insurers at one time and choose the best option.
AVOID RIDERS AND ADDITIONAL INSURANCE
Add-ons include the option to purchase child policies or more insurance at a future date without going through the medical exam process again. Term conversion is another rider that gives you the option to convert your term policy to a permanent (whole life) policy. There is no one-size-fits-all method to buying life insurance, but having as few riders as possible will keep your rates low.
SEEK A FINANCIAL ADVISOR
One- company local agent usually represents the interest of their own company, hence it is better to avoid them and seek the help of a financial advisor who could guide you in purchasing the policy that suits you.
BUY WHEN YOUNG
It’s always best to buy life insurance when you are young as this usually means lower rates because the person being insured is young and healthy. Although the need for the benefits may seem far off, it is still beneficial.
DETERMINING THE LEVEL OF COVERAGE
You could use life insurance calculator online to determine the coverage- premium ratio depending on the type of coverage required at different stages.
Check out Manning Financial , leading qualified financial advisor cork.They offer an advice on life cover & mortgage protection , retirement planning, saving & investments, personal pension and about life insurance..