subject: Insurance life policy-the facts about it [print this page] Insurance life policy-the facts about it
There is always confusion and arguments when you are listening people debate on the life insurance policy issues. Some say they can't insure themselves with a life insurance, better they insure the properties, furthermore as long am not there, when that time comes, the dependants will control the properties left aside' this means according to them there is no need to insure for a life insurance. There is other group which knows the importance of insuring for a life insurance whichever type, but they understand that there is need but how it is going to help them, they are in no side. The last group is the one which understands the necessity and how they are going to benefit-in most cases the dependants.
But how far do you know about life insurance policies? Do you know the common facts about life insurance policies?
All life insurance polices are classified into to major groups;
Whole life insurance policy
Term life insurance
With the term insurance life policy, you are entitled to coverage of a particular time period, where you agree to be insured for a specific period, may be seven years, to which, if the insured dies within that period, then the dependants are entitled to compensation.
Whole life insurance, as the name indicates, means that you are covered from the time you pay the first premium all the way until you die. This kind of insurance is a bit expensive considering the fact that it will not end after a given period.
Whole life insurance policy is expensive: as we have discussed above, whole life insurance policy is covering after time of one's life. Also since the policies do have investment component, they are more likely to cost a little more than when compared to term insurance. This results to most of the people not being able to pay for the insurance, and thus become underinsured.
Insurance is not bought, it's sold: life insurance policies agents sell the large part of the insurance policies since life insurance has vested more interests in pushing high commissions.
strict separation between your investment and insurance: who avoid mishaps with the insurance companies, it is good that you treat insurance issues on their own and investment issues on their own, don't make them work together, because one will eat' the other.
Enough coverage: ensure that you buy enough coverage for your needs. Consider understanding your all needs such as your children's education, shelter and such things before you look for the insurance life policy. This will help you to keep everything under control without leaving others unattended.
Those life insurance polices are based on assumptions: returns which are made by the gents are in most cases guessed, and are never a reality. Some companies will keep these quotes in future so that they can attract more employees.
Buy life insurance policy when you are healthy: older people have a higher subjection of risk compared to the young person. This will especially apply to the persons who are applying for a whole life insurance policy, where, they gauge you can insure yourself today and some few days from then, you are no longer there. Most companies will avoid this, thus it is good to insure yourself when you are still young and healthy.
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