Life Insurance is much much needed for everyone to secure your dearest future lives so before taking life insurance read these 12 tips for getting the cheapest and best life insurance but wait a mint let me gives a short overview of life insurance concept.
The concept of life insurance:
Life insurance means insurance that covers material losses arising from the realization of the phenomenon of death or reaching a certain age (life) or both (death and life). Therefore, life insurance is one of the life risk management policies for the individual to face the financial loss arising from the realization of the phenomenon of death for the individual’s dependents, or for the financial loss arising from reaching a certain age and the inability to earn. It is a way to face the lack of income or the interruption of income due to death or reaching a certain age, or both.
Life insurance documents
A life insurance policy is a contract under which the insurance company undertakes to pay the insurance amount to the insured, his heirs, or the beneficiary or beneficiaries specified in the policy, in the event of the death of the life insured, or in the event that the life insured reaches an age specified in the policy, in return for The insured has to pay a single premium, paid once upon contracting, or in annual installments.
Life insurance policies can be divided according to the benefits obtained by the beneficiaries of life insurance into three main sections:
Section First : insurance policies that are paid to the heirs and beneficiaries in the event of the death of the insured, such as temporary insurance policies and life insurance policies.
The second section : insurance policies whose amounts are paid in the event that the insured remains alive, such as pure endowment insurance policies, and life payment contracts (pensions).
Section Three : Insurance policies whose amounts are paid in the event of death or life. These are mixed insurance policies that guarantee the payment of the insurance amount to the beneficiaries if the insured dies during the insurance contract period or the insured personally obtains the insurance amount if he is still alive at the end of the insurance period.
12 tips for getting the cheapest and best life insurance
1. Buy life insurance when you are young and healthy
The younger and healthier you are, the cheaper the life insurance policy is, and the price of the policy increases as you age.
2. Change your lifestyle
Lifestyle is one of the factors that can affect the cost of your insurance premiums. Smokers' monthly premiums will be higher than non-smokers' because they are at greater risk. Overweight people pay more monthly installments than those with ideal weight.
3. Review the insurance policy regularly
You must review the terms that you contracted with the insurance company with the passage of each year and review your financial needs annually and compare them with the ones you insured yourself with. Your family is enough because of a new unplanned child, for example, or because your annual income has increased in an unexpected way. You must contract a new insurance policy to supplement your financial needs.
4. Make your payments yearly
Paying premiums annually can save you up to 8%.
5. All information must be provided to the insurance company in a transparent manner
In order to subscribe, you will be asked to provide certain personal information such as your lifestyle (do you smoke), salary, and medical history. It is imperative that the insurance company knows your personal information in order to create an accurate picture of the risk posed by issuing you a life insurance policy, even if you feel uncomfortable sharing it with a stranger. This risk will determine your insurance premiums. If you fail to disclose any relevant details or information to the insurance company, you risk having your insurance policy canceled if it is found that you hid any information.
6. Choose a trustworthy insurance company.
The purpose of a life insurance policy is to provide financial security to the people you care about after you are no longer there to do so. Do some homework (research and examination) on the life insurance company you are considering purchasing the policy from. There are a lot of insurance companies in the market. It is important to choose an insurance company with history and reputation in the market (awards and reviews from clients who have received compensation
7. You must understand that life insurance is designed to protect against the risk of death
In the event of your death, you should obtain life insurance to protect your financial beneficiaries (your children). Therefore, the temporary insurance policy is the best type of insurance policy, and therefore you must buy it and its duration is until your youngest child reaches the age of 23 years and is able to earn.
While life insurance policies that have an investment part, such as life insurance policies or mixed insurance policies, insurance companies say that they have the ability to form cash value over time, but the rate of return in them is less than prevailing in any other investment in the market and even less than a deposit The money is in the bank, but the life insurance policies that have a savings part are very expensive, which makes people buy life insurance policies that are less than their actual material needs.
8. Compare insurance companies on a consolidated basis
When comparing the prices of different policies in insurance companies, you should compare policies that are similar in type, duration of coverage, additional features attached to each policy, and exceptions, and not on the basis of which one is cheaper.
9. Take advantage of the “free look” cancellation period.
Most laws in most countries of the world when dealing with life insurance give the contracting party with the insurance company a period of one month or three weeks to cancel the insurance policy and recover the full money that he paid, except for the medical examination money, and that the insurance company presents to the insured the medical examination bills that it received from the hospital that She checked.
You must ask the representative of the insurance company about the period of free cancellation, and its start date, and the start and end dates of this period must be mentioned in the contract. This period allows you to make sure that the terms of the insurance policy are suitable for you. All you have to do is request to cancel the policy if you feel it is not suitable for your needs.
10. Choose a policy with a fixed premium from beginning to end with a known specific amount
You must choose a life insurance policy that is with a fixed premium from beginning to end and do not choose the types whose premiums increase with the passage of time. Therefore, when choosing a fixed premium policy and you are contracting with the insurance company, the contract will be written in a specific, known and unchangeable manner, the amount that the beneficiaries will receive if Death occurred.
11. Read the insurance contract carefully
You must read the insurance contract very carefully and you must understand every term, every word and every meaning, and you must consult more than one person and more than one insurance expert about these terms in the insurance contract. Before signing and after signing the insurance contract, you must read it three times. Your wife must also read the contract and comment on it. You must do that because you will not be present when death occurs, and your wife will listen to the famous saying, “This is what your husband agreed to..!”
You should know the exceptions in the insurance contract, which, if realized, will not get any compensation from the insurance company. If you want to insure yourself from these exceptions, the insurance company may negotiate in return for an increase in the premium. Among the most famous exceptions are death due to war, revolution, or radioactivity.
12. Features and additions to the life insurance contract
After reading the insurance contract and knowing the types of death covered by the life insurance policy and knowing the exceptions that are not covered by the life insurance policy, the insurance company employee will try to offer you some additions to the insurance policy and features for a higher premium.
Among the most famous additions and features offered to you by the insurance company’s representative and most people choose is insurance against death from a serious illness or insurance against death in an accident, because these additions are among the exceptions in some insurance companies in some countries such as the United States of America.
You must obtain the features and additions that you really need, such as death in an accident or death from a serious illness, and you must make sure that your current policy covers these risks.
Buying life insurance can give you peace of mind that your loved ones will be taken care of financially when you are not around. If you are planning to buy life insurance then these tips should help you get the cheapest and best life insurance.