The Important Do’s and Don’t of Life Insurance

by Free Insurance advice on February 1, 2012 · 0 comments

in Insurance in Nigeria, Life Insurance

If you worry a lot about your family, you should get life for your own peace of mind. In the event of your death, your family would get money from your life . If you are not earning to support your family after you are gone, you should look into life as an alternative.

You have decided you need a life insurance policy, and figured out how much insurance you need, now you need to figure out what kind of insurance best fits your needs. Currently there are two broad categories of life assurance cover: Pure Life and Investment linked.

When you are selecting your life insurance policy, it is important to determine how much coverage you actually need. The amount of money that will be needed after your death is going to be specific to your family’s situation, so you’re the only one who can calculate the needed coverage. Don’t let a salesperson push you into more coverage than you actually need.

When you are thinking about how much life insurance to purchase, it’s a good idea to get at least eight or ten times the amount of your annual income. With this amount, if something happens to you, your will be able to invest wisely and continue to take care of their living expenses in the long term.

When designing your life insurance policy to pay out to a spouse, consider the tax implications of the titled spouse owning the policy. When the titled spouse dies, the policy payout then becomes part of their estate, and transferring those funds to the living spouse creates a . If the non-titled spouse owns the policy the funds are not considered to be part of the deceased’s estate.

When investigating underwriting companies for your life insurance policy, ensure that you select a company that is large and reputable. It is best to select one that has a good rating from one of the four rating agencies such as Standard & Poor’s. A cheaper policy through an unreputable firm will provide little comfort if they are unable to honor the payout when required.

When looking for a life insurance plan, it is beneficial to compare costs between many different insurers because your value and payment may vary greatly. This is the one aspect of insurance cost that you can have the most control over. When comparing companies, compare rates and also do not forget to check out what other perks they may include.

Having a life insurance policy can be a nice way to leave money for the family that you are leaving behind. This extra money can help out greatly to assist your family’s needs. The right life insurance policy can give an individual a wonderful peace of mind, knowing that his or her family is going to be okay, financially.

If you are considering buying life insurance, be sure to check with your employer before going to your insurance agent. Your employer may be able to give you a better rate on life insurance due to having made a deal with the life insurance company to insure a large number of people. You may be able to get life insurance for yourself and your family members at very attractive rates.

What do you think about Life insurance, Let’s hear your comments…

Contact us for advice, that’s why we are here.

 

Leave a Comment

Previous post:

Next post: