In one way or another, we have been introduced, presented or even harassed – in a good but annoying way – by Insurance Agents to buy an insurance policy. I had my share of experiences that ended in major regret in deciding and managing these insurance policies.
Regret not because I bought insurance. But regret because I did not consider pertinent deciding factors and relevant issues that would get the best out of my policy choice. I had two, not one, insurance policies that I needed to give up due to poor proper step by step delineation of things to consider before actually buying the policy.
That is why it is important that you know what to do before you get a life insurance. Here are four easy to follow considerations one must take into serious pondering before signing up to an insurance policy.
Financial readiness.
Nowadays, we are becoming very price sensitive. In order for sales insurance agents to sell, they need to show your cost that is very cheap enough for you to say “yes”. They would divide by months or days just to make it appear that you can actually afford such a trifle amount.
Comparisons would also be made to simple everyday cost like the price of your lunch meal versus that of your daily insurance cost. Remember: Get into the nitty-gritty situation of computing the insurance cost in the long run. Compute how much your premium (the amount you need to pay on installments) would be on a monthly, semi-annual or annual basis.
Make a schedule of your monthly payables and make sure that the cost of the insurance will fit in perfectly. As other policies may have add-ons, bear in mind all the time that you should not buy more coverage than you need. Determine the amount of coverage that you require and stick to it. You have the figures and the mathematical equations are simple. Compute to be ready.
Dig into it.
Usually, when we hear many jargons that are too technical, we tend to just let the presenter lead us to something that we will understand modestly. This is a common pitfall. I know because I did.
Increase your vocabulary of technical terms like policy, premium, coverage or exposure. You will be surprised that is it not as complicated as it sounds. Also, do not slack off. It will not take even 2 weeks to get all the best selections you need.
Compare policies within the company of your choice. If you cannot choose one that suits you, compare policies for other insurance companies, too. Get price quotes and testimonies online. Involve yourself in everything the policy has to offer.
Assess yourself honestly.
Aside from questions that will be asked to you about your medical history and personal habits, check yourself primarily for this will affect your insurance policy choice. If you have a severe medical condition with directions leading to what is inevitable, you might want to consider policies with higher claims in a shorter time.
And yes, habit like smoking or exercising are all accounted for to get the best out of your policy. Seek clarifications on terms, periods, and premiums from your financial adviser to achieve your best option.
Yet the question remains among working ages and retired workers: Do we really need life insurance? The answer is YES.
By acquiring insurance, you make the uncertain future somehow certain. It is actually a win-win situation unless, of course, you decide to cease paying in the middle (as I did). As a plus, there are insurance policies that have life insurance with investments. You will be insured and your money can earn if you are diligent in paying.
Can it get any better than that? After reading this article, hope you already know what to do before you get a life insurance.
