How do I choose the Best Life Insurance Policy?

Just like law 29 from the 48 Laws of Power by Robert Greene and Joost Elffers, the 29th law clearly states: Plan to the end. If there is something that attests to this law in our traditions of life, I think it will be buying a life insurance policy. 

Getting a life insurance policy is a good trait of having a good plan. A plan that ensures one’s well-being and makes room for possible and unforeseen situations life could suddenly throw at one. 

After this read, you would be able to choose the best life insurance policy, consider which age is too late to get life insurance, the average cost of life insurance, and course a good comparison to which is better between the term life and the whole life insurance. 

Considering a life insurance policy is the first move in the right direction if you seek to buy a life insurance policy. This is because, away from taking a pick from the varieties of insurance, the conviction and need are what keep you committed to paying your premiums after settling for one.

Below are steps on how to choose the best life insurance policy after a personal consideration. 

1. There is a need to note the features of each life insurance policy since they vary. Identify the unique features that stand them out amongst others. 

2. Ask questions where you have grey areas on the types of the life insurance policy. 

3. It is better advised that one starts early because it sure saves time, and you pay less while still younger before the health bills and more start creeping in. 

4. Identify the purpose of owning a life insurance policy. Would it be to sort out your funeral ceremony, would it be for the welfare of your family after your demise, would it be something to live on while aged, or intended for a health challenge in the future. 

5. Before settling for a policy, you should consider your earning power, this would help in choosing which life insurance policy to settle for. If the purpose of getting life insurance is to feed your family after your demise, consider your annual expense, likewise your annual income to have an idea, then pick a plan. 

6. Choose the Insurance company you want to identify with. Review your purpose, the types of policies available, your net worth with the agent, and then proceed. 

7. Note that you can always review your policy as time goes on. 

I would have been quick to say age does not matter when it comes to getting life insurance, but the truth is: it does. It is advised that the earlier one gets life insurance, the better for one because the premiums are much cheaper. Most insurance companies have a varying age limit to whom they provide life insurance for. While a great portion of them just increase the premiums, others range between 65 and above. 

Why life insurance is considered late by most insurance companies is because the individual is considered at high risk of death or health challenge than normal. 

There is a need to understand what the Term life is and what Whole life insurance represents. If there be a major difference it would be that Term life is an insurance policy for a certain period stated at the point of quote, while Whole life is a permanent insurance policy, therefore its premium is more costly compared to Term life insurance. 

Because term life insurance is transitory and has no cash value, it is frequently the cheapest type of life insurance. On the other hand, whole life insurance rates are substantially higher, because the coverage lasts one’s entire life and the policy accumulates cash value. 

Life insurance premiums may vary depending on the type of policy, the purpose, and the add-ons, however, the average monthly cost of life insurance is an equivalent of USD 27.00. This is from data compiled by Quotacy for a USD 500,000 term life policy which is usually the average plan people consider. 

 

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