Buying life insurance is one of the things that the insureds must pay attention to. Life insurance is one of the most useful solutions in the face of financial and personal hardships. These misfortunes can occur during any person’s life and put them and those around them in a critical situation. These misfortunes include temporary and permanent disability, death, financial problems, etc. Life insurance is the right and appropriate measure to deal with these issues.
In addition to providing life cover, life insurance also has special coverage against death risks, and the insured person can get the appropriate policy from the insurance company by paying an amount as an insurance premium and choosing the desired coverage. In this policy, the insureds enjoy many benefits in case of life, and in case of death, their family and beneficiaries enjoy various benefits. This insurance can also be introduced as a long-term investment that will be very useful for future applicants.
However, you should be careful in choosing the conditions and type of life cover and get clear information so that the insured are not dissatisfied with the damage. In this article, 10 things you must know about life insurance are provided.
Life Insurance Benefits
Life insurance has several benefits that are mentioned in this section:
- Creating peace and comfort for the survivors of the deceased
- Tax exemption
- Loan guaranty
- Getting a mortgage
- Determining the insurance contract beneficiaries
- Flexibility
- Life cover plan
- The possibility of determining the insurance policy duration
- Possibility to repurchase insurance ahead of time
- Investment as a lump sum or monthly pension
10Things You Need To Know About Life Insurance
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Identify life coverage
Life insurance offers two types of coverage: coverage related to the death of the insureds and coverage granted to the insureds during their lifetime. The insureds’ conditions must choose coverage because choosing inappropriate coverage will reduce savings and insurance capital.
- Life cover at the time of death
- Naturally death
- death as a result of an accident
- Life cover at the time of living
- Medical expenses resulting from the accident
- Permanent disability due to an accident
- Exemption from insurance premiums in case of permanent and complete disability
- Specific diseases
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Various insurance companies products
Applicants must review the types of products of different insurers in this field and choose the most suitable insurance policy for themselves. If the insured goal is an investment and financial gain, buying several policies from different insurance companies is a great job.
But if the insured goal is for the survivors to benefit from the death capital, insurance companies usually set a certain limit for each person’s death capital. Insurance companies offer policies in different fields according to the conditions and needs of insureds. Generally, types of life insurance include full, term insurance, investment insurance, all types of plans for children, pension and retirement insurance and group insurance.
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The affordability of applicants
Before buying this policy, applicants should specify the insurance they want to pay. This premium must be commensurate with the insured affordability so that they do not suffer from the inability to pay or the incompatibility of interest. On the other hand, it is better to specify the type of premiums. Premiums are paid monthly, quarterly, semi-annually and annually, although insurance companies consider special conditions for annual payments.
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Term of insurance policy
One of the important points of buying this policy is the duration of the insurance policy. Choosing this policy of fewer than 10 years is not recommended, as repurchasing before five years will usually not be profitable at all. It will also lead to losses. Applicants should take advantage of longer travel periods such as 15 years, 20 years or 30 years.
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Evaluate current insurance
The insureds may already have this policy. First, it is necessary to evaluate it carefully and then see if the same policy can meet its needs for life insurance or not? If the answer is no, it is necessary to complete that insurance policy or even buy a new insurance policy.
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Careful review of the provisions of the insurance policies
An insurance policy is a contract between the insureds and the insurers for a long time. Also, the importance of this policy makes the insurers well aware of all the terms and conditions governing their insurance. Items such as how to pay premiums, the annual increase in premiums and capital, type of supplementary coverage, how to pay capital to beneficiaries in the event of death of the insured and the documents required for it, insurance policy exceptions, etc. are among the important issues that in the general terms of this policy and its supplementary coverage are listed.
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Identify the factors affecting the determination of insurance rates
The life insurance applicants should know the effective factors in calculating the premium. The most important factors affecting the calculation of this policy premiums are age, weight, height, gender, health history and occupation.
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Search the market to find the best rates and conditions
Applicants compare the insurance companies rates and conditions with the extensive research they do in the insurance market, and from them, they can choose the best option according to their needs and conditions. Each of the insurance companies products has different strengths and weaknesses, and a comparison of a wide range of products on the market provides a better picture of the insurance market for applicants.
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Use a specialist life insurance broker
Due to its high flexibility, this policy can adapt to the needs of applicants. Therefore, before preparing the application form, the insureds must talk to one of the insurance brokers in full and discuss their conditions. This can help them to suit their needs.
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Other important points of buying life insurance
It is recommended that applicants pay attention to the following points when making a decision and purchasing life insurance:
- The financial wealth of the insurance company
- Paying attention to the insurance company’s payment records
- How to provide insurance company services
- How to pay the insurance company
- Sufficient attention in completing the application form
- Sufficient accuracy in determining the beneficiaries of the insurance policy
Conclusion
We mentioned tips that are important for everyone in the community to know so that while recognizing their needs and circumstances, they can choose the best option from the wide range of insurance companies products.
This article also mentions the benefits of different life cover plans. Tax exemptions, getting guarantees, getting mortgages, flexibility in choosing beneficiaries and how to pay premiums, and side coverage of life cover plans are the most important benefits of using life cover policies.
AWS Mortgage experienced advisors are a good guide for insureds. By identifying life cover and complete comparison of different insurance companies products, they select options appropriate to the affordability of applicants and their current insurance policies and provide the necessary advice on the rates and conditions of the proposed insurance companies products.
Talk to AWS Mortgage specialist advisors to get the best life cover plans based on the applicants’ financial situation. AWS Mortgage advisors provide consulting services regarding life cover plans to contractors, workers, and professionals in various sectors, are fully acquainted with the insurance company plans and introduce the best options to the applicants according to the needs of the applicants.
