Once you identify your general needs for a life insurance policy, then you should take some important steps to understand the policy types and best insurance company to choose the right and best insurance policy plan.
If you are one of them who consider deeply while choosing any family secure plan whether it is related to a life insurance policy or Medicare insurance coverage or anything else, below some useful tips on choosing the best plan will surely help you to get the best.
Insurance coverage is the best way to secure yourself and your lovely family, so think twice before choosing the best insurance policy.
How much life insurance do I need to buy? How much money do I need? Which life insurance company should I choose? Which life insurance policy is best? These kinds of questions probably hitting on your mind, if you’re looking to buy life insurance policy for the first time.
Well, it seems little harder, however knowing some general things, it can be easier to choose the best life insurance policy.
What is a Life Insurance Policy?
Life Insurance Policy is a contract between an ensured (insurance policy holder) and an insurer (insurance company) in exchanging some premiums (payments) regularly or as one lump-sum.
The insurance company promises to pay a lump-sum benefit (money) to the insured person in case of death. It is very depending on the contract type. Sometimes the company also covers other events such as critical illness or/and accidents.
Life-based contracts are dived into two major categories – term protection policies and whole life, universal or variable life policies.
Life insurance policy is generally chosen based on the requirement, needs, and goals. Term life insurance policy offers protection for a period of limited time-span, such as 10 or 20 years, however, permanent insurance like whole life and universal insurance plan provides protection for the lifetime.
What is Life Insurance Policy Types?
As we mentioned above that the life insurance types are categorized into two major classes – temporary and permanent or other sub-classes such as term, whole life, universal life, & endowment life insurance policy.
- Term Insurance Policy: term plan provides life insurance coverage for a period of limited time.
- Permanent Insurance Policy: permanent life insurance plan cannot be surrender anyhow except fraud until the owner regularly pays his premium amounts.
- Universal Insurance Policy: universal life insurance policies is somehow a new insurance product that provides guaranteed death benefits and equity-indexed universal insurance policy.
- Whole Life Insurance Policy: Whole life coverage provides lifetime death benefits. The main advantage of this whole life insurance policy is guaranteed death benefits and it’s specially designed to provide lifetime coverage.
- Endowment Life Insurance Policy: It is a life insurance contract specially designed to pay a lump sum after a specified period like on death or on its maturity period. Endowment insurance requires more premiums than universal life and whole life plans as premiums are paid over the shorter intervals.
Here we’ve given a short info only, to learn more on this, see life insurance on Wikipedia.
How to Choose the Right Life Insurance Policy Plan – Helping Tips
Well, doing some homework is always a good idea. In actual, life insurance companies are doing excellent in providing health coverage. You can easily select the best life insurance policy in 3 simple steps.
Engage With an Insurance Advisor
Frankly speaking, directly contacting with any broker, agent or advisor is a best practice. So get in touch with your insurance advisor and let them know about your general needs. Also, ask the policy advisor for a life insurance policy quote and life insurance policy comparison sheet.
If you’re looking for the cheapest life insurance policy, tell your insurance agent and ask for the differences between the cheaper and costliest plans.
In the side by side, cross-check the insurance company reputation like customers review and ratings. Go to their website to check the financial health of that particular company.
Proper Calculation the Life Cover
Get in touch with an insurance advisor so that his/her expertise can help you to give you an idea of the amount of life cover or the sum assured.
If you want to have life insurance quotes, then try MetLife life insurance calculator – an online calculator to figure out what expenses and debts you will need to cover.
Well, an insurance advisor can help in a better way other than the calculator. He will assess your sources of income, your debts & liabilities, number of dependents and your expenses.
He will also guide you which life insurance plan you should choose – term plan, endowment plan, whole life plan, the combination of plans or any other.
Trust your advisor, he will surely provide you best deal or offer, but wisely selection is always preferred.
Wisely Compare Insurance Plans
There are plenty of insurance companies are out in the market providing a variety of plans, you should always be sure that the plan you are selecting is the suitable for you.
Do not forget to ask the advisor to give you compression between policies because policy comparison will help you to understand what you are going to buy.
Life insurance policy is not the thing that you buy and just forget it, it is a matter of your valuable life. So take all steps wisely to find the best life insurance company in your area whether you are from USA, Canada, UK, Australia, Italy, Singapore or anywhere else. Find a right company that can help you to protect your family and finds you appropriate recommendations, product and prices with an outstanding customer service.