If you’re considering buying life insurance, you might have seen those adverts claiming, “Safeguard your family with $1 million insurance for just a few dollars a day.”
Sounds like an excellent deal, doesn’t it? These adverts usually point to term insurance. As per the name, such an insurance plan provides protection for a limited term or time, like 10, 20, or 30 years.
The concept is straightforward: Your dependents will get a death benefit if you pass away while your plan is active.
However, the various insurance types in the market can be confusing. So, is term insurance or any other insurance really beneficial for you?
Find answers to the below questions to figure out.
Why Do I Want Life Insurance?
Before you purchase any type of life insurance policy, take a moment to think about the reasons behind why you’re buying it. Are you insuring your family members in the event of premature death? Are you taking other loans that require you to get ant insurance? Do you want to pass on an inheritance or make a donation to an organization?
If you’re looking to take insurance to cover financial obligations which will last for a lengthy period, perhaps for the rest of your life, then you can consider a permanent insurance policy.
On the other hand, if you’re facing financial trouble and are in immediate debt to your family members, lenders, or business partners, term insurance can be an instant way out.
What Type of Coverage Is Available?
The majority of people will have access to a minimum of two types of insurance policies for the term:
- Group
- Individual
Group Life Insurance
Many businesses offer their employees some kind of term life insurance as a workplace perk. It’s referred to as group term insurance because you’re protected as part of the larger group. It’s usually deducted directly from your salary.
The only requirement to be covered is to fill out a short questionnaire that includes details about your medical background and other similar questions.
Individual Life Insurance
As per the name, it is an individual policy where you need to apply for insurance by yourself. You or your family member will be the policy owner.
For this policy, you’ll need to undergo a medical test, submit the details of your medical history, let the insurance company review your medical reports, and conduct an investigation into any criminal or driving acts. It may sound like an invasion of your personal space, but the benefits are worth it.
If you still think this is too invasive, you can choose to take an embedded insurance plan. Know what is embedded insurance by clicking here.
What If I Don’t Die?
It’s a bit ironic that some customers who purchase term life insurance get upset when they learn that they will not receive the money back if they don’t pass away after the policy term. However, it’s crucial to know the consequences of your policy when you reach the policy’s maturity.
As you approach the policy’s maturity, there is the option of retaining the policy. If you decide to keep it and have paid level premiums, you can expect an enormous increase in the price. So, if you’re still healthy and you would like to have a term policy, we’d advise considering a new policy.
The Bottom Line
After you’ve answered the above four questions, it will be easier for you to decide which policy type will best suit your lifestyle requirements. Remember, there is a myriad of insurers out there wanting you to buy their policy. However, be a responsible policy buyer and make a smart decision.
As mentioned above, flexible insurance like embedded insurance can also be a good option!
Good luck.
The post Confused About Insurance? Ask Yourself These Questions! appeared first on Entrepreneurship Life.
-------------------------------------
By: Olivia
Title: Confused About Insurance? Ask Yourself These Questions!
Sourced From: feedproxy.google.com/~r/entrepreneurshiplife/feed/~3/6kgfbcoS2r8/
Published Date: Fri, 29 Oct 2021 13:24:23 +0000
Did you miss our previous article...
https://coachingbusinessowners.com/startup/managing-vacation-rentals-remotely
