Which Type of Life Insurance Should I Buy?
There are many different types of life insurance available – term, whole of life, variable, universal, endowment, investment-linked, the list goes on. It can be confusing and intimidating and can often be a reason why people end up putting it off. So, here are some tips to help you make the right decision when it comes to choosing the right life insurance:
- Get multiple quotes that include all options and restrictions so that you understand exactly what is available
- Do not buy from any agent, adviser or organization that cannot fully explain what you are buying and how it meets your needs
- Always remember that you are the client and do not ever feel bullied or pressured into purchasing something you are not sure about
- Do not over-insure. The amount you need depends on what you want it to cover. Of course, you need to have adequate coverage to ensure the financial well being of your dependents in the event of something happening, but you also need to have manageable premiums. Otherwise, if they are too high, you may end up in a position where you are forced to let the policy lapse, which will then leave you unprotected and vulnerable
- Once you find a firm/consultant you are comfortable with, ask questions. The clearer you are on the options that are right for you, the easier it will be to agree on a policy that meets your requirements
- Remember to regularly check your policy for changes that may affect you or your family. Almost all insurance companies will send out notifications to explain changes they have made, so make sure you review them and take action if required
- Review your policy regularly and update (e.g. increase/decrease cover) as your personal circumstances dictate
- View your life insurance as a fixed, non-discretionary expense. Do not consider it as a luxury, but as a necessity
Don’t Delay – Act Now!
Ask yourself a simple question:
“If I die tomorrow, would that negatively impact on anyone financially?”
If the answer is, “Yes”, then you need to look at taking out a life insurance policy. Life insurance is really one of those things that you should not procrastinate over, not just because it leaves your loved ones vulnerable, but also because the older you get, the more expensive it becomes and taking out an insurance policy when you are young allows you to lock in lower premiums.
So don’t delay – get on it today!