A life insurance policy is an important decision one makes not just for themselves for mostly for their family and loved ones. If you are the sole bread earner in the family and people depend on your finances, then taking up insurance becomes a must to do thing. However, deciding upon one isn’t a cake walk. From the type to premium values, there are major factors to consider well before.
Hence here are 10 things you absolutely need to know about before buying a life insurance:
Review
Firstly, one should talk to an insurance agent. This can be another tough job to do but an insurance agent is the right person to get the know-how of insurance market. They help you evaluate your insurance needs and accordingly provide information about the available policy options.
How Much Coverage You Need
How much is your share in the family income? Does anyone depend on you financially? How will your family pay final expenses and repay debts after your death? Answering these questions will lead to how much coverage you need, for how long and how much you can afford to pay.
Current Life Insurance Policy
If you already have one insurance policy, do not cancel it until you have signed and received the new one. Or seek the help of an agent to know if you can change your policy to get the coverage or benefits you want now from tasjeel dubai.
Compare
From the two basic types of life insurance – term insurance and cash value insurance – term insurance has lower premiums in the initial years, but does not build up cash values. Also, cash value life insurance are of following several types: whole life, universal life and variable life. Hence, base your choice on your needs for now and also consider the future too.
Premium Payments
One should be super sure of the fact that you can afford the premium payments. If the premium increases later, one should be prepared for it.
Evaluate the Future of Your Policy
Some policies have low cash values in the early years but they build quickly later on and other policies have a more level cash value build-up. Therefore, clear the terms with your agent for a year-to-year display of values and benefits that the policy may come with before signing it.
Current Policy
As mentioned above, if you have another policy and plan to buy another without, you can keep them both depending on the options you have as replacing adamjee insurance policy sometimes becomes a costly affair.
Renewal Policies
One can always renew term insurance policies even if the health has changed. Though the premiums get higher, most term policies provide the option of renewal. You can ask your agent from tasjeel sharjah about the premiums and the maximum age limit where you lose the right to renew the policy
Read Your Policy
Sometimes, premiums or benefits vary from year to year or a certain part of the premiums or benefits is not guaranteed. Such factors affect in the long run on the policy and thus should be well answered before deciding on the final policy.
Review Every Few Years
As the market trends changes or as your financial needs alter, certain terms can differ in the policy. Hence, knowing the impact of the changing times and market should be cleared in advance. For example, do you need more orient insurance when family size increases? Thus, one should review the policy with the agent every few years to keep up with changes in income, needs and trends.
