Top 4 Questions you need to Ask Yourself Before Signing Up in any Insurance Policy
There are several instances in life when you wonder if you have made the right decision. A few of them may be related with finances. Investing your hard earned cash in any financial products of a company without understanding how it functions, is a common problem these days. Your mind is stuffed with doubts and uncertainty on whether you have made a good investment, particularly if it is in a long-lasting deal like insurance.
Insurance policies are a must in any financial portfolio as it includes the risk linked with the loss of life or asset. Since it involves a long term deal, mostly a decade, it is quite hard to make modifications or amend these agreements during the policy term. Thus, you have to spend more time researching about the offers to make sure you don’t end up regretting later on. What are the questions or factors you need to consider when getting an insurance policy?
Is it a need-based investment?
The typical thumb rule is that your insurance should be a 10x your annual income so that your family is not impacted financially in case something unexpected happened. You have to consider any pre-existing medical difficulty or property loans while picking the best life insurance. Your financial portfolio must be well balanced and need-based. For an instance, you have to create a corpus for your kids’ education, you can pick from a variety of items from insurance companies that guarantee the funds that you had planned for you kids’ education are obtainable whether you are around or not.
You have to remember that insurance is a protection-cum-long-term investment and savings tool. You have to know your needs, and accordingly purchase a policy that will help you meet your needs in the future.
Is it a reputable company?
As soon as you have decided to purchase a policy, you could do the necessary background check on the company involved. All life insurance companies have complete disclosures on their sites that provide all the necessary data. Policy structure, client service capabilities, scope of system, and online platform are just some of the important things you must look for.
Have you compared several companies?
There are several sites that can help you compare many policies as well as premiums from different insurance companies. But, the only thing you need not to worry is the financial health of an insurance firm. The insurance sector is well regulated and all companies have to keep a solvency ratio to make sure that clients will not suffer.
Several companies are offering different deals. It is advisable to check on them and pick one that best suits your needs and budget.
Are you familiar with the policy?
Understanding the features of the policy, particularly those linked to term, payments, maturity dates, and costs is extremely important. You should also understand the benefit structure of the cover. Every Ulip comes with an advantage illustration at 10% and 6% that unveils the costa and what the status of your investment would be every year.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
There are several instances in life when you wonder if you have made the right decision. A few of them may be related with finances. Investing your hard earned cash in any financial products of a company without understanding how it functions, is a common problem these days. Your mind is stuffed with doubts and uncertainty on whether you have made a good investment, particularly if it is in a long-lasting deal like insurance.
Insurance policies are a must in any financial portfolio as it includes the risk linked with the loss of life or asset. Since it involves a long term deal, mostly a decade, it is quite hard to make modifications or amend these agreements during the policy term. Thus, you have to spend more time researching about the offers to make sure you don’t end up regretting later on. What are the questions or factors you need to consider when getting an insurance policy?
Is it a need-based investment?
The typical thumb rule is that your insurance should be a 10x your annual income so that your family is not impacted financially in case something unexpected happened. You have to consider any pre-existing medical difficulty or property loans while picking the best life insurance. Your financial portfolio must be well balanced and need-based. For an instance, you have to create a corpus for your kids’ education, you can pick from a variety of items from insurance companies that guarantee the funds that you had planned for you kids’ education are obtainable whether you are around or not.
You have to remember that insurance is a protection-cum-long-term investment and savings tool. You have to know your needs, and accordingly purchase a policy that will help you meet your needs in the future.
Is it a reputable company?
As soon as you have decided to purchase a policy, you could do the necessary background check on the company involved. All life insurance companies have complete disclosures on their sites that provide all the necessary data. Policy structure, client service capabilities, scope of system, and online platform are just some of the important things you must look for.
Have you compared several companies?
There are several sites that can help you compare many policies as well as premiums from different insurance companies. But, the only thing you need not to worry is the financial health of an insurance firm. The insurance sector is well regulated and all companies have to keep a solvency ratio to make sure that clients will not suffer.
Several companies are offering different deals. It is advisable to check on them and pick one that best suits your needs and budget.
Are you familiar with the policy?
Understanding the features of the policy, particularly those linked to term, payments, maturity dates, and costs is extremely important. You should also understand the benefit structure of the cover. Every Ulip comes with an advantage illustration at 10% and 6% that unveils the costa and what the status of your investment would be every year.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
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