Life Insurance: 10 Things Your Agent Won’t Tell You: A blog about life insurance | EfPrime Finance
Life Insurance: 10 Things Your Agent Won’t Tell You: A blog about life insurance
Life insurance is a personal decision. You can't be forced to take it out by a company or anyone else. It is something you have to make up your own mind about and weigh all the pros and cons, but that doesn't mean there isn't some basic knowledge every individual should know before they get started.
Here are 10 things your life insurance agent won’t tell you:
1) Not everyone needs life insurance. For many people, it may not be necessary, as you can rely on other forms of savings in case of unforeseen circumstances like illness or death.
2) Life insurance isn’t for everyone. Health conditions, past medical history and other factors may make someone uninsurable.
3) Your life insurance must be paid and up to date when the unforeseeable event happens. Otherwise, your beneficiary receives nothing from the policy's death benefit. The lesson there is to not lapse your respective policies.
5) You should get life insurance before you have children. Just because your life insurance rate may be lower, it doesn't mean you'll save money with lower premiums. If you're healthy, consider signing up before you have children. The longer you wait, the more expensive your policy will be. Also, keep in mind that an older parent may require more coverage than a younger parent.
6) Life insurance can be used for non-financial reasons as well -- for example, when someone is deemed dependant on the insured to help them with their daily living tasks in order to carry on with their normal state of affairs during the time they are unable to do certain activities due to illness or accident.
7) For VUL Life insurance, you can fund switch your funds to maximize the returns of your investment.
8) If one of your beneficiaries passes away, their share of the death benefit is removed from the account.
9) If a person receives a death benefit and they still have debts when they die, the beneficiaries are responsible for paying those debts up to the extent of the properties they received from the decedent.
10) It's more beneficial to buy longer-paying life insurance compared to shorter-paying life insurance be it may term insurance or variable unit-linked insurance (VUL). In VUL, it is more beneficial to pay on an annual mode as compared to semi-annual, quarterly, and monthly payments as annual payments will give the highest returns.
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Disclaimer
The Author is advising readers to consult with your respective Financial Advisors before venturing in any investments. Investing your money is dependent to your goals and your risk tolerance. You should know the risks and rewards of investing before you actually do the same. The illustrations above are for educational purposes only and any risks or losses that you may incur are imputable to your respective decisions.
The author does not in any way provide a guaranty as to the effectiveness and quality of the products and services that are featured in this blog. The products and services were advertised based on personal experience and product and service reviews that the product/service received.
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