What is the best life insurance policy to have? | EfPrime Finance
What is the best life insurance policy to have? | EfPrime Finance
The decision about what type of life insurance policy to buy is an important one. You should know the options out there and what your specific needs are to determine which type of policy is best for you. In this blog post we will go over the factors that contribute to buying a particular type of policy, as well as discuss some general advice on how to figure out if you need it or not.
Factors to Consider
There are many different types of life insurance policies available for purchase. A policy is simply a contract between a person and an insurance company which states that the company will pay out a specific sum of money to certain individuals upon the death of the person in question. As you might have guessed, life insurance costs money, but it is generally inexpensive enough that everyone should consider having some sort of policy. The cost is small when compared to what it could do for you (and your beneficiaries) if you were to pass away unexpectedly or prematurely.
Financial Capacity – Buying a life insurance is easy. You just need to talk to a Financial Advisor and in a matter of one hour or less, your policy is for approval already. That is how quick Philam Life Insurance do their job in securing lives in the Philippines.
Although, buying is easy, what is difficult is to maintain that policy until full payment. Times will come that the policy owner might fail in continuing his/her policies due to circumstances. My advice is to get a life insurance that you can afford to finish. Do not buy a policy and later on decide to not pursue it because you are wasting scarce resources of both yourself and your Financial Advisor.
Elimination Period – Life insurance policies from different life insurance companies differ in elimination period. The elimination period is the period in which the insured will have to wait in order that the insurance takes effect. This is true for accident insurances and critical illness insurance. My advice is for you to choose the insurance company with the shortest elimination period so that, upon breaching the elimination period, you are fully protected from the risk you are avoiding.
Coverages - Do not buy life insurance for the sake of buying a life insurance. You must make sure that your coverage should cover all the risks of life i.e. untimely death, accidents, critical illness, hospitalization and retiring without money.
Term – Term life insurance policies are the traditional kind of life insurance policy. They have a certain term, generally a 10 or 15-year term, and they pay out upon the death of the insured person if that person passes away within that particular term. They are very inexpensive, so they're an excellent option for those with short term goals and small budgets.
Whole Life – Whole life insurance policies are one of the more popular types of insurance because they carry a savings account option that is very attractive to many people.
VUL
Life Insurance - A type of life insurance wherein the cash value built up can
be invested in a wide variety of separate accounts, the choice of which to use
is entirely up to the contract owner. Variable universal life is a type of
permanent life insurance, because the death benefit will be paid if the insured
dies any time as long as there is sufficient cash value to pay the costs of
insurance in the policy. Related: Best VUL life insurance of Philam Life
Decision point:
It will be up to you to decide on which policy you will choose. Make sure that you understand what you buy.
The
policy that you should buy should sufficiently cover your family’s needs. In
addition, that it should be within your financial capacity i.e. at least 10% of
what you earn on a monthly basis. Further, check on the integrity and financial
capability of the insurance company that you which to buy. Finally, talk to a
credible Financial Advisor as he/she will be your focal point with regard to
the policy that you bought.
Book my services as Financial Advisor.
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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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