Posted on: 22nd May 2019
The issue of life insurance still baffles a lot of people to date. We have come to learn over the years that many are not well-informed and this usually affects their perception of what life insurance is all about. As a result of this, many folks out there do not know what to expect from purchasing life insurance. It is all a big mystery to them and the ones who know a thing or two, barely understand the basic concept of life insurance.
In order to narrow down how best you can arrive at putting yourself in the know before purchasing life insurance, here are four (4) vital questions to ask yourself before going ahead. They are;
It is called “life insurance” doesn’t necessarily mean you get coverage for life, no, not exactly. However, there are two types of life insurance and both come with different approaches.
One of such is referred to as permanent life insurance; it ensures a financial cover for life (as can be easily assumed when you hear about life insurance). Nonetheless, we also have the term life insurance; this type of insurance refers to one set up for a specified time-frame. It can be for 10, 15, 20 or even 50 years. When the term expires, all bets are off and you can either renew it or change it to permanent life insurance or you can choose to discontinue altogether.
The premiums to be paid for your life insurance is based on the coverage you will receive in addition to some important factors like age, occupation, (family) medical family history, etc. Also, note that permanent life insurance is usually almost 10 times more expensive than term life insurance. Therefore, in deciding which to go with you may need to ask yourself some few other questions. Are you planning to leave an estate or a major investment of some kind? If your plans are that elaborate, then perhaps you can consider permanent life. You can also consider permanent life if you have the funds (you’re always better prepared with permanent life insurance). However, you can decide to pay lesser premiums depending on what you can afford by subscribing to a term life insurance that suits your financial plan.
In figuring out how much coverage you really need, you are going to have to ask yourself one simple question and that is; “what is important to me?” At the barrel end of this question, you’d find the financial needs of your family/dependents, mortgage, car, credit card, debts, medical, funeral and burial expenses and a host of other things. So again, how much life insurance coverage do you really need? We think enough to cater for your dependents when you’re gone.
In order to get the most out of your life insurance coverage, you must consider the existing policy riders. These policy riders vary and are usually affected by what the insurance company allows or offers in conjunction with your personal information. For example, a waiver of premium rider will enable someone who is no longer able to work (either by virtue of injury or disability) desist from paying premiums. It is simply waived. Another example is the children’s life insurance rider, which allows the insured to take out life insurance policies on their children with immense benefits to them. Consider policy riders as those things that sweeten the deal.
When considering life insurance, there are a few key details you must familiarize yourself with in order for you to fully understand what you’re getting into. African Alliance ensures that you’re fully abreast of all the necessary information so that you can make informed decisions.
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