With many realising the importance a life insurance, the demand for it has certainly increased. However, it can be very tedious to source for the right life insurance for yourself, with so many choices available in the market. While many will choose the easy way out by seeking recommendations from their insurance agent, it is important that you are aware of the different types of insurance available for you to make the best decision. Here are some steps you can follow when choosing a life insurance.
Step 1: Identify the type of insurance coverage you already have
What other forms of insurance do you have? What are the coverage of the insurance you have already purchased? There is no point in paying for coverage you are already receiving.
Step 2: Decide how much coverage you will need
It is important to know how much of your family income you contribute, and also how many of your family members are financially dependent on you. On top of that, also consider how your dependents are going to support their expenses and repay debts after your death. After figuring all these out, decide how much coverage you need, for how long, and how much can you afford to pay.
Step 3: Source for life insurance quotes
There are many avenues to looks for insurance quotes. You can contact your insurance agent, or multiple insurance companies, or even look for them online
Step 4: Compare all the quotes
You want to pick the most affordable insurance that can cover all your needs. Here are some simple questions you can ask yourself while comparing the quotes:
- What are the different benefits and premiums of the insurance?
- How much cash value can you accumulate in the different policies?
- Are the policy fees build into your premium?
- Does the policy have dividends?
- Choose a company that has a good record of paying out its claims.
- Choose a company that provide high quality services even when problems occur. This is actually more important than choosing an insurance with the cheapest premium, as it would greatly reduce complications should you face any problems
- Be honest with your medical history and all family members’ medical history. This would greatly reduce complications should there be any need for claims to be made
Now that you have a general idea of how to how a life insurance, it is time for you to evaluate your choices.