Life Insurance Advice and Tips You Must Know
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Posted On :
Oct-06-2011
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Article Word Count :
791
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In choosing life insurance, one should be thorough and sure to choose the right one. Make sure that you choose a life insurance that not only provides peace of mind for you and your family, but also can potentially act as a future investment.
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Life Insurance is a policy or a contract between the named insured (policy holder) and the insurance company (insurer) wherein the insurance company promises to pay an agreed amount of money to the insured's named beneficiary upon the death of the insured person.
Essentially, it is a form of insurance that pays monetary proceeds to a designated beneficiary upon the death of the insured covered in the policy. Its function is to help beneficiaries financially after the owner of the policy dies.
Why should People Get it?
People get it for this main purpose: Family’s Financial Stability. It can protect and help families from any financial burden and insure that your family be financially stable after you die.
Tips in Choosing the Right Life Insurance
In choosing an insurance, one should be thorough and sure to choose the right one. Make sure that you choose one that not only provides peace of mind for you and your family, but also can potentially act as a future investment as well as ensure that you are partnering with a reputable, stable insurance company.
Here are some tips that can help you choose the Right Life Insurance:
1. Learn and Understand the Two Basic Types of Insurance: Term and Permanent
Before getting a life insurance, you must learn and understand its types and details so that you can better choose the right one for you and your family.
Term insurance means that it's issued for a specific term of years in exchange for a specified premium. The policy does not accumulate cash value. The premium buys protection in the event of death and nothing else.
Permanent insurance is a life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). It is intended to last a lifetime ensuring that someone receives a benefit from the policy. There are four basic types of permanent insurance: whole life, universal life, limited pay and endowment.
2. Assess and Evaluate Your Family’s Needs
You must decide if you can afford and how much you can afford to pay for insurance that will protect you in the future. Ask for a quote --- you can either do this by consulting a professional or from free life insurance quote online.
3. Compare Life Insurance Quotes
Gather as many quotes as possible, compare and assess life insurance quotes from various insurers. You can do this by using an online “quoter” at an independent agency.
4. Be Thorough and Do Research.
Prior to making any decision, obtain as much information as possible and ensure that you have read all the small print. You can find information by logging on to the Insurance Companies web sites or contacting an Insurance Agents.
5. Insure First Who would be the Most Damaging Financially
Assess, evaluate and decide who amongst your family can cause the most damage financially when he/she dies.
6. Be Careful from Cheap Insurance Quotes
Be wary and careful if a quote seems particularly cheap against the others. This could be because it does not cover for essential aspects that might be of utmost importance to you.
7. Annually Review your Insurance Needs.
More often, as your personal situations change (i.e., marriage, birth of a child new home, more possessions, or job promotion), so will your life insurance needs. Make sure that the life insurance you have taken is still suitable for your current long-term life insurance needs.
8. Select An Agent You Can Trust
Select a reputable and competent agent. A competent and reliable agent will take into account any of your current and future needs you may have
9. Weigh Any Associated Costs Before Making A Purchase.
Every life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs. Make sure to assess and evaluate them before making a purchase.
10. The Earlier The Better
Once you have assessed, compared and evaluated that you need a life insurance and the agency you will engage, do not put off taking the life insurance, and do it right away. Typically, the younger you are when you take a life insurance, the lower the cost and the easier to get approved.
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Article Source :
http://www.articleseen.com/Article_Life Insurance Advice and Tips You Must Know_89121.aspx
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Author Resource :
Insure4U has all your insurance information from Life Insurance to Income Protection Insurance. Let us guide you through the process of finding the right insurance for you and your loved ones.
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Keywords :
life insurance, life insurance quotes, life insurance advice, life insurance tips,
Category :
Finance
:
Insurance
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