It never hurts to have this kind of tools to protect your family and your business. We will tell you 10 tips to choose a life insurance.
Everyday life exposes us to situations of risk that can strongly affect personal finances. Any day, a disease can destroy everything because we have worked.
Situations such as disability or death can destroy the heritage we have forged for our family; for this reason, it is important to have life insurance that protects our loved ones when we can no longer do so.
So, we give you some easy tips to choose a life insurance.
They are given below:
- Familiarize yourself with the vocabulary: It is important to know some terms that will help you make a good decision.
- Coverage is the specific risk for which the insurance will protect you.
- Policy: it is the document that contains the general rules of your insurance.
- Sum insured: refers to the maximum amount that the company will pay you if the covered accident occurs.
- Premium refers to the cost of insurance.
- What do you want to insure? There are unemployment insurance, medical expenses, cars, real estate or personal insurance. Prioritize your needs and be prospective, analyze what things or who are vulnerable.
- Economic dependents: Consider if you have young children or if you are studying, you are single or retired; how much income besides yours will commit.
- What coverage do you have? Coverage is usually due to death, third party damages or disability; however, you can opt for terminal or serious illnesses or funeral expenses. It is suggested that the coverage goes from five to eight times the current income.
- Define your budget: Think about how much you earn and how much you could spend on insurance payment.
- Review options: The insurer can be a bank or perhaps a specialized company, consider the trajectory, presence in the city and country, prices and what its strength in the sector. The insurer must have physical offices and permanent care websites, in addition to alternative means of communication.
- Seek advice: There are insurance agents and insurance brokers. The first ones are people who guide you about existing insurance and make you a plan tailored. Meanwhile, the brokers are intermediaries of several companies, which are engaged in marketing contracts and insurance policies to their customers.
- Compare: Many times the decision for insurance is only motivated by the price; however, the ideal is to make an assessment of the advantages and disadvantages of each option.
- Organize your income: Look for payment plans that do not compromise other necessary expenses in your family.
- Beneficiaries: Clarify the name and percentage that will be granted, remember that they cannot be minors. Avoid intermediaries, if you designate someone else to deliver the sum insured this action is only a moral obligation.