subject: Vital Questions To Ask Before Choosing A Life Insurance Policy [print this page] Every individual have different intention in purchasing insurance policy. Some purchase insurance plan to ensure their family's financial stability. Some do it to make sure that their family will not experience any trouble in preparing for their funeral when their death comes. They also consider leaving adequate insurance coverage that could pay off your debts. As buyers search out for insurer that can provide their needs, they need to ask these essential questions before they acquire a life plan. Below are the crucial questions to ask before buying a life plan:
The Difference Between Term and Whole Life
Insurance agents often suggest term and whole life insurance policies to their probable clients. Term life insurance grants coverage that pays a specific amount of money to the recipient at the time of death of the insured. This kind of plan offers coverage with flexibility and terminates at a definite period. Conversely, whole life insurance give coverage that offers an exact amount to the beneficiary as the policy holder dies. This type of policy also includes an investment feature. The policy holder has the option to amend the policy into hard cash even before they die. Whole life plan is a bit more costly compared to term life insurance due to its investment feature.
When Does The Policy End?
Term insurance plan starts and expires on a definite date. At the time the term ends, the policy coverage also expires and the beneficiary will not receive any benefit at the time the insured passes away. There are policies that include a grace period, which permits the insured to make a payment within a number of days after the expiration date. If the life plan ends, the plan holder will need to renegotiate the terms of the policy at a higher premium.
How Much Life Insurance Do I Need?
Buyers need to realize the first the level of insurance coverage they need before they buy a policy. An individual must also give consideration to their financial obligations that they have to pass on to their family members. You should also consider any insurance plan presently owned, such as through the policy holder's employer. Several insurance agents utilize an insurance calculator to help and lead the buyer in understanding the level of coverage required.
Do Unmarried Individuals Need A Life Insurance?
There are many single people who consider acquiring life plan but in doubt if it will be beneficial to them. Single individuals with no kids must purchase life plan coverage to prepare their funeral at the time of their death. You should prepare for your death so it will not cause any burden to your relatives or friends. Lastly, an individual with dependents have to opt for a plan that will insure financial security to his dependents at the time he passes away.
by: Cindy McGrant
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