For the first time we want to choose life insurance might be a little confused by the terms and policies that exist in life insurance. But do not worry by learning a little about life insurance, we will be easy to understand. There are several things to consider before choosing a life insurance.
Do Need Life Insurance
Do not buy an insurance policy just because someone recommended it. Many advertisements about life insurance that can make us be worried and have to buy a life insurance policy, because not everyone needs life insurance.
The purpose of life insurance is to provide financial protection / finance for people who become our dependents. If we do not possess dependents then life insurance is not deemed necessary. When we have a mortgage or a family to make a living and thought was given to protect them when we (the providers) then life insurance may be a good choice.
Know type of life insurance
Basically there are three types of life insurance, Term Life Insurance, Whole life insurance and Insurance Endowment.
- Term Life Insurance.
Term life insurance is a predetermined time. If the insurance contract has ended but the claim does not happen, then the amount already paid is not refundable. The amount of the premium paid is smaller, but with a large sum.
- Whole life insurance or life.
Is life insurance that guarantees its owner until the age of 99 years or for life. The price of insurance premiums are more expensive than term insurance. There are other benefits of this insurance is that it can used as collateral for loans, and there is a bonus dividend. When the contract of insurance exhausted, there is an amount of money that can returned.
- Endowment.
Is term insurance that serves as a savings. To value the most expensive insurance premiums between term insurance and life insurance. This insurance has a cash value, and the funds can spent on predetermined time before the insurance contract runs out.
Of the three types of life insurance are we supposed to know which one to select the type.
Find Insurance Needs
Understand and know the requirements needed by the people that we endure. Know their needs until a certain age, it can help us to choose and buy the type of life insurance with sum assured that can meet their needs.
