10 tips for choosing life insurance
If you are a first-time life insurance buyer, it can be hard to know which plan to choose. Each live cover provider will tell you that their plan offers the best benefits, but it is hard to know how to read between the lines and make a decision that is best for your specific needs and budget. After all €" planning your insurance is a big step, and one that shouldn't be made in haste.
To help you get started, here are a few tips to keep in mind once you have gotten a few life insurance quotes from leading providers. Tips include the following:
1. Know your needs €" only you will know your financial situation, and you shouldn't be swayed into an expensive policy that will leave you strapped for cash. Set a budget, and be clear in what you need when approaching insurers.
2. Know your options €" you can choose from full or whole life cover, or term cover. Find out from your advisor, broker or the insurer what options you have, and have them explain what each one means rather than pushing a full cover on you without explaining the benefits.
3. Contact an independent broker if you can €" if your budget allows, contact a broker once you have gotten some quotes on life cover, to help explain how each quote works and what you can expect.
4. Watch out for brokers who work on commission €" brokers who get paid by insurers for suggesting certain products may not be totally impartial. Rather go for brokers who get paid on a fee basis to ensure that they are completely fair.
5. Understand that insurance is protection, not investment €" some life insurance plans have a savings option, but many do not. Essentially, you are investing in your loved ones' futures rather than investing money for yourself, so be aware of this when choosing life plans.
6. Ask the difficult questions €" don't be shy to ask questions, no matter how silly they seem. Find out if the contract can be cancelled, how long your premiums are guaranteed for, if they cover accidental death and any other questions you may have.
7. Compare life cover plans €" this is where life insurance quotes come in handy. They allow you to compare different plans from different insurers so that you can see what is standard, what is different and what each one has to offer.
8. Don't replace old full life cover plans €" if you have been paying premiums for the past 5 years, you may not be able to get these back. Before moving to another provider, always find ways to make do with your current plan.
9. Take time to read through your contract before signing €" read the terms, and take as long as you need before committing to a live cover plan. This will save you a great deal of stress in the long run if you pick up on any issues beforehand.
10. Keep it simple €" most insurance companies will try to sell you add on products that you probably don't need. Stick to the basics, and unless you actually need additional products, give these a miss for now and focus on reliable life insurance instead.
To help you get started, here are a few tips to keep in mind once you have gotten a few life insurance quotes from leading providers. Tips include the following:
1. Know your needs €" only you will know your financial situation, and you shouldn't be swayed into an expensive policy that will leave you strapped for cash. Set a budget, and be clear in what you need when approaching insurers.
2. Know your options €" you can choose from full or whole life cover, or term cover. Find out from your advisor, broker or the insurer what options you have, and have them explain what each one means rather than pushing a full cover on you without explaining the benefits.
3. Contact an independent broker if you can €" if your budget allows, contact a broker once you have gotten some quotes on life cover, to help explain how each quote works and what you can expect.
4. Watch out for brokers who work on commission €" brokers who get paid by insurers for suggesting certain products may not be totally impartial. Rather go for brokers who get paid on a fee basis to ensure that they are completely fair.
5. Understand that insurance is protection, not investment €" some life insurance plans have a savings option, but many do not. Essentially, you are investing in your loved ones' futures rather than investing money for yourself, so be aware of this when choosing life plans.
6. Ask the difficult questions €" don't be shy to ask questions, no matter how silly they seem. Find out if the contract can be cancelled, how long your premiums are guaranteed for, if they cover accidental death and any other questions you may have.
7. Compare life cover plans €" this is where life insurance quotes come in handy. They allow you to compare different plans from different insurers so that you can see what is standard, what is different and what each one has to offer.
8. Don't replace old full life cover plans €" if you have been paying premiums for the past 5 years, you may not be able to get these back. Before moving to another provider, always find ways to make do with your current plan.
9. Take time to read through your contract before signing €" read the terms, and take as long as you need before committing to a live cover plan. This will save you a great deal of stress in the long run if you pick up on any issues beforehand.
10. Keep it simple €" most insurance companies will try to sell you add on products that you probably don't need. Stick to the basics, and unless you actually need additional products, give these a miss for now and focus on reliable life insurance instead.