Choosing life insurance seems like an easy way to do. In fact, there are some factors you have to consider before choosing the right life insurance for you. You may ignore the factors, but you might regret to do this later.
As a Financial Service Consultant of Prudential Life Assurance (Jackson Life Assurance in the USA), I do suggest you to consider the following before deciding to sign up the proposal your agent provide you, ask the following questions to yourself.
1. Why do I need a life insurance?
This is a very basic question a prospective client has to ask to his/herself before deciding to buy a policy. A life protection is actually needed by anyone, no matter the condition, the health condition, the profession. The higher the risk you have, the more urgent you need to have a life insurance.
2. What products do I need?
For those who new to life insurance, they will find themselves difficult in deciding the products they actually need. All insurance companies offer such lucrative lures as the cover provided, the benefits, the easy way of claiming, the customer support, etc. Your insurance agent will explain you in such an interesting way but you have to focus on the questions, "what products do I need?"
There are a lot of insurance products you can choose based on your need, both for traditional and unit-linked insurance, such as basic insurance (for death and/or disablement), early stage crisis cover, crisis cover, income cover, hospital cover, accident care cover, waiver payor, etc. Ask you agent or financial service consultant to clearly explain in detail all about them.
Do not buy the products you do not actually need a lot.
3. How long will I take the insurance covers?
After you decide what insurance products you buy, next is to think of the length of period of coverage. As I have explained at the understanding the basic concept of insurance, decide first whether you choose buy either the traditional insurance or unit-linked insurance. Each of them has their own advantages and disadvantages. The main difference of them is the period time you have to pay the premium: you have to pay all your life time to cover your need all the time if you choose the traditional insurance, and you need only to pay in a certain period of time if you choose unit-linked insurance in order to be lifetime protected. Make it sure by asking the clear explanation about the period of coverage you will get in case you choose either traditional or unit-link insurance.
4. Could I afford the insurance covers?
This question deals with your money. Be wise in terms of spending money on this. Just pay what you actually need the coverage. You again your agent might persuade you to buy all protection products the company has as the more money you pay for the premium, the higher commission will the agent earn.
Some professional financial consultant advice people to spend not more than 30% of their income. Never spend more than that amount of money as you will find difficulties in paying the due date in case you need fresh money for non-coverage incidence.
5. Are there any comparisons I can learn from other insurance companies?
Each company has a certain standard in paying the claims as well as determining the minimum and maximum coverage a customer may apply for. Find out comparisons first first before deciding signing the proposal provided by your agent.
This also include the procedures of claiming, facilities provided, as well as the services provided by the company by surfing through the internet or by inquiring others whose different insurance policis.
Based on the five self-questions above, you have to be wise and selective before paying the life insurance offer by a certain insurance company.
Happy insuring!
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