Like any other insurance policy, life insurance has many variations to meet different users’ needs. Thus, before choosing one, you must determine what you need in a life insurance policy.
The best way to determine the best policy is by evaluating your needs, premium costs and terms of service.
The answers to these questions can help you determine the policy that suits you best.
1. What Do I Need From My Life Cover?
We all have varying needs and wants, depending on each one’s unique circumstances. So, you must identify your needs to avoid buying the wrong policy.
For example, you need a whole life policy if you want to leave an inheritance or to protect beneficiaries from debt after your death.
This information can help you know the right life insurance type and amount.
2. How Much Life Insurance Is Enough?
Your insurance cover may not fulfil its purpose if you underestimate the amount you or your beneficiaries need. So, you must factor in everything you expect the insurance benefits to cover.
For example, you must consider your current and anticipated debts and assets if you want a policy to clear your debts.
3. What Life Insurance Policy Should I Choose?
You can choose your life insurance policy from the available types. Below are the five main types of life insurance policies.
- Whole of life insurance
- Joint life insurance
- Over 50s life insurance
- Critical illness cover and children’s cover
- Terminal illness cover
4. What’s the Cost of My Policy?
Many factors can determine the premiums you pay for your life insurance policy.
Your life insurance policy provider may consider gender, age and health when determining your premiums. Other factors include your coverage amount and whether your policy is permanent or for a limited time.
Ask for a quote to get a clear picture of how much your policy will cost.
5. What Does My Policy Cover?
You can only identify your policy’s terms by reading the Product Disclosure Statement provided. This document explains what your policy covers, plus any exclusions or additions.
Contact your life insurance cover provider if you have any questions about your policy’s terms and conditions.
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.
This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.