Most people these days are averse to purchasing life insurance. Why is this so? Maybe I can't answer that for everybody, but from what I know,
stigma and ignorance has a lot to do with it. As a child, I've always heard that "insurance a thief"; as a result when I became an adult I had no interest to purchase insurance,
saving that which we are legally bound to have - like motor insurance. Thanks to working in the insurance industry, I now understand the concept and principles of insurance.
If you are seeking to purchase life insurance, here are five important tips to consider when doing so.
Life insurance is designed to provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay for mortgages, a college education, help to fund retirement, provide charitable bequests, and, of course, is a key element in estate planning. In short, if others depend on your income for support, you should consider purchasing a small "starter" policy, if you anticipate you will have them in the future. Why? The younger you are the less expensive life insurance will be.
The amount of money your family or heirs will receive after your death is called a death benefit. Whilst you may not be able to easily predict the amount of coverage you need, you can start by hypothetically calculating based on presumed final and on-going expenses should the insured die - like school fees, mortgages, etc.
Once you figure out how much coverage you'll need, consider the best policy option to meet those needs; one that you can afford the payments. There are two main options: term life - for a more affordable premium, or permanent life - for more comprehensive coverage that can add cash value.
An insurance policy is only as good as the company that backs it. You should choose a company you can rely on to be around as long as you will need your coverage, and which invests your premium in a highly prudent manner in order to pay the claims of its policyholders.
A registered insurance professional can help you factor in financial considerations, your needs, and your family's needs. It is highly recommended that you go through an insurance broker that has the ability to research the market and help you make an informed decision based on your insurance needs.
Don't allow stigma and ignorance to keep you from making important insurance decisions.