Posted on March 29, 2020 at 10:44 pm

Featured Lifestyle News

Life Insurance 101

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Life is very unpredictable. It comes with a lot of surprises. From deaths to diseases, there are numerous surprises in life. That’s why investing in life insurance can be a nice idea. With life insurance, things like terminal conditions, death, and family upkeep won’t bother you. So, if you are planning to purchase life insurance, keep reading. This article will help you purchase the right life insurance cover.

Do It When Young and Healthy

It’s always better to purchase life insurance when you’re still young and healthy. And this is mainly because most insurance claims are often paid to people aged between 30 and 40 years.

Choose Level Premiums

Depending on your financial situation, you may want to consider investing in a stepped or level premium structure. Stepped premiums are typically those that increase as you grow older. With this type of insurance, the initial premiums are usually much lower than level premiums. Nonetheless, the premiums will continue to rise every year until the end of the term.

On the other hand, level premiums remain constant throughout your term. While premiums start higher, you’ll actually end up paying less in the long run than if you’d have opted for stepped premiums.

Evaluate your Income

When it comes to life insurance, having income protection is extremely important. In case you aren’t able to work due to an illness or injury, your income protection policy will be able to provide up to seventy-five percent of your monthly gross income. The monthly stream of salary you’ll get will ease your financial burden by catering for your family’s daily needs.

Go For a Comprehensive Cover

Purchasing a comprehensive life insurance cover will ensure that you’re protected against a wide range of risks. For instance, the policy can protect you in case of disability, severe illness, or even death.

Consider Changing Your Lifestyle

Did you know that your health and lifestyle could significantly affect the cost of your insurance premiums? Well, now you know. If you’re a smoker, your premiums will be higher because you’re more vulnerable to health risks than non-smokers.

And if you have a low Body Mass Index or BMI, your premiums will generally be lower. Leading a healthier lifestyle can help minimize your insurance premiums.

Review the Policy

As time moves your needs change. The insurance policy that you purchased when you were 30 years old might not be right for a 50-year-old person who’s eyeing the possibility of retirement. Reviewing your cover regularly will help you choose what suits your current situation.

Work With Reputable Insurance Companies

There are numerous insurance providers out there whom you may want to consider. However, it’s always important to choose one who’s reputable and has a proven track record. This will ensure that you get the best services at an affordable price.

The Bottom-Line

Are you looking to purchase a life insurance cover? Well, things can be difficult. Plus, there are a lot of policies out there. This makes it confusing to purchase the right policy at the right time—especially if it’s your first time. However, you don’t have to fret. Use the above tips and purchase a life insurance policy cover and lead a stress-free life. Use a life insurance calculator and land the best insurance policy.

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