Life insurance is a vital part of your family’s stability as it can offer a ‘financial cushion’ in the event of an unfortunate incident. Not many know what to look for while buying life insurance and it can get more confusing with the numerous available policies in the market. There are many things to consider, from the kind of coverage you need to the advantages of different insurance policies.
Ken Maynard Insurance Brokers Ltd. is a family-owned business that has been serving private and commercial clients since 1965. We can give you professional advice in helping you understand the complications of insurance policies.
In this blog post, our expert analysts discuss the tips you should follow while buying life insurance.
What Is Life Insurance?
It is a contract to make sure that your family members dependent on you for financial support will receive a certain sum of money upon your passing. The contract will be made for a selected amount of coverage with tax-free benefits. The amount can be used for:
Replacing your income to maintain the standard of living of your family.
Childcare or education costs.
Paying for funeral expenses.
Paying off all your debts.
There are certain points that should be considered before buying life insurance which are:
Assessing your insurance needs
Before you buy a life insurance policy, know your financial contribution to the family and how many members are dependent on you. It is also important to identify other sources of income that your family can depend on to meet expenses.
Identifying the right type of policy
Many assume that all life insurance policies are the same; this isn’t the case. The two main types are whole life insurance and universal life insurance.
Whole life insurance will offer coverage as long as you are alive. This is perfect for long-term responsibilities such as post-death expenses or income needs of the surviving spouse. The younger you are when you make the purchase, the more affordable it will be; policy premiums stay the same throughout the time the policy is active.
Universal life insurance is a cost-effective lifetime coverage where you will have the liberty to increase or reduce death benefits. You can also pay the premiums at any time in any amount if the first premium payment is made.
Future of your insurance policy
It is advisable to take the help of an insurance agent to know the finer details of the coverage, such as the events that don’t come under the policy. This will help you make informed decisions and help your family at the time of claim.
The company you are going to buy from
Life insurance coverage is only as good as the company. It is important for you to check the claims payment ratio. The firm will have rejected certain claims but it’s important to know the reasons behind them. This will help you to know whether the company will pay the promised amount in case of any unfortunate incident in the future.
Let Ken Maynard Insurance Brokers Ltd. Help
We are an independent insurance broker in Woodbridge that offers various insurance products. Our analysts can tailor quality insurance policies for your requirements as we analyze each situation critically.
Read our blog post - HOW LENDING YOUR CAR CAN IMPACT YOUR CAR INSURANCE – to learn more about how lending your vehicle can impact your car insurance.
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