So you want to do the smart—and right—thing. The modern world now allows you to look after your loved ones, even after you’ve passed away. And yes, it’s the right thing to put this in place. Your family deserves it.
But picking a policy can create more problems than it being a blessing if don’t select wisely. Have you ever considered this? What features are you looking for in life insurance? Do you need to make sure they have cremation insurance?
What is Your Lifestyle?
How interesting is your lifestyle? And by interesting I mean dangerous. Ever thought this could influence your expenses? If you’re applying for life insurance, it will.
It’s not only your level of health your policy holder will investigate. Your application could be rejected if some of these apply to you:
- Taking part in high risk activities such as extreme sport, sky diving, rock climbing and more. Your premium will sky rocket, which isn’t the kind of adrenaline rush you’re looking for.
- When your advisor finds out your goal is to travel to all the dangerous countries in the world, you’ll be met with a frown.
- Staying in high risk areas influences your premiums. Life insurance San Diego residents acquire will always be more expensive than similar families living elsewhere. That’s thanks to the ever present risk of earthquakes.
What can you do about this? You can move or change your lifestyle. Alternatively you can source for proof that you’re always doing your best to stay safe. A certificate of driver training before attempting motorsport will go a long way in reducing costs.
But be prepared for high payments so you don’t get a shock looking at your quote.
What Type of Policy is Best?
Don’t simply follow the multitudes. What works for others may not work for your family.
Do you know you can pick between term and whole life policies?
- Term policies: Benefits apply if you die within a certain term.
- Whole life policies: You can use the funds of the policy later in life. Alternatively it will all be paid out when you die.
The particulars of your situation is vital in your decision making. If your family history shows you may fall sick late in life and you think you’ll need funds to cover medical expenses, your life insurance policy can help with this.
But only if you pick the right one from the start.
How Flexible is the Policy?
Of course changes in your life causes your needs to change over time. Initially a term policy looks like an excellent plan. But what if you realize you need a more permanent one?
Find out: Can you upgrade?
Yes, some policies allow for changes, but don’t take it as a given. Discuss the policy in depth so you know exactly what your limitations are.
Who Will You Trust With Your Money?
This brings us to one of your most crucial decisions. If you trust the wrong person or company you can lose all your money.
The internet puts us in contact with all manner of services. But you can’t trust everything you read.
I prefer meeting financial advisors in person so I can ask for references and vet them properly. But not everyone has time or skills to get this right.
At the very least you must ask for proof of the company’s registration. All countries have associations that regulate financial institutions’ activities. If someone trying to sell you a policy doesn’t belong to such a group it’s time to leave. You don’t want someone disappearing with your hard earned cash.
We all know it’s necessary. But we don’t know how to go about it. I advise people to be prepared before going to that first meeting with an insurer. Know what you want and what to expect. When you have information and don’t feel pressured you make wiser decisions.