The Basics of a Life Assurance Policy
Life assurance policy is important if you are married or have children, especially if you are the primary financial provider. A life assurance policy ensures your loved ones will not endure financial trouble when you are gone, especially if it’s unexpected.
Types of Life Assurance Policy
There are four basic types of life assurance: term, whole (cash value), universal and variable. Term life insurance is the most affordable, especially for those who are under 40 years old and are healthy. It offers coverage for a fixed period of time, typically up to 30 years. Whole life covers an individuals lifetime, as well as offers a cash value. Universal life offers more flexibility with premium payments, which are determined by your cash value and cost of death benefit. Variable comes in two forms, variable whole and variable universal.
Basic Information Needed for Life Assurance Policy
When shopping around for a life assurance policy, you should know a few simple things, such as who your beneficiaries would be, what percentage you want to give each beneficiary and if you want the money paid in one lump some or over a series of payments.
Talk With Your Employer
Many employers are required to have group life assurance policy on employees. Check with your employer to see if you can purchase additional coverage – even basic coverage – to cover basic funeral expenses and provide a bit of income for your family following an unexpected death.
Review Your Life Assurance Policy Needs
Before you set out to find quotes and purchase life assurance, you should determine what your needs for insurance are. Decide how much family income you provide and what will need to be covered in the event of an unexpected death. Consider any debts you may have that your family would incur. You also need to determine the length of time you wish to be covered and how much you can afford to pay for a monthly or yearly premium.
How to Buy a Life Assurance Policy
There are many ways to purchase a life assurance policy, but be wary of scams. You can purchase life assurance from a company, agent or online. It’s important to check into the company’s history and financial record to make sure they are reliable and can afford a payout upon your death. Make sure they are approved and have a good reputation. Shop with caution, as many policies vary in cost and coverage. Look around and compare quotes before settling on a company to work with.
Talk with a Professional About Your Life Assurance Policy
Once you’ve determined a company for your life assurance policy, you should speak with an agent about evaluating your insurance needs before you purchase a plan. An agent can help give information about various policies. Talk with the agent about the future of your policy, such as how quickly your cash value will grow. It’s important to continue to talk with them about keeping your policy current, as well.
Having a life assurance policy is an important move in protecting your family from a financial burden if you should unexpectedly die.