How to choose the best life insurance
Sciencelovers - How to choose the best life insurance needs to be understood by prospective customers. Because, the best life insurance is life insurance that is tailored to your needs.
For example, life insurance is expected to cover standard living needs for heirs as well as for certain purposes such as ensuring the education of children when the insured dies.
Based on the principle of life insurance, the insured who dies or suffers from total permanent disability will receive payment of money from the life insurance company.
However, life insurance benefits can be obtained as long as the insured pays the premium in accordance with the contract with the insurance company.
The greater the premium paid, the greater the dependents that can be paid by the life insurance company.
So, how to choose the best life insurance that suits the needs of the insured?
How to choose the best life insurance
There are several important points that can be the basis for how to choose the right and right life insurance for your needs:
- First, how to choose life insurance is to make sure that the sum assured is selected correctly. Adjust again the selected life insurance with its purpose.
- Second, how to choose life insurance is to focus on protection, not investment. Separate investment and protection and do not combine the two in one life insurance product. Try to maximize protection only if you want to choose life insurance.
- Thirdly, how to choose life insurance is wiser if life insurance is purchased when you have dependents. If you do not have dependents or are not married, you can allocate the funds for other protection, such as maximizing health protection or more profitable investments.
Life insurance is an emergency plan that is very much needed in the event of a risk of death for the bearer of financial responsibility in a particular family or group.
Therefore, do not be wrong in choosing life insurance with various important points that have been explained.
In addition, choosing the best life insurance is not only based on premiums and large sum insured, but also the following factors need to be considered before choosing or buying the appropriate life insurance.
So, here are some factors to consider when choosing the best life insurance:
1. Cheap life insurance premiums
The best life insurance is insurance that provides low premiums. One of the factors that affect the premium price is the type of insurance chosen. From the various existing life insurance options, you can choose term life insurance.
This type of insurance does not include investment or savings elements so that all premiums are actually allocated specifically for protection only.
2. High sum assured
The best life insurance is insurance that provides a high sum insured. If your goal is to protect the life of the family after the insured dies, then the insured's money must be adjusted at least enough for the life of the family for the next 1 year.
Likewise, if the purpose of life insurance is for children's education. The sum assured must be able to cover the cost of the child's education until he graduates from college.
3. Provide certain riders
The best life insurance can provide more protection to protect family health. This type of product is different from the type of unit-linked and endowment life insurance.
This means that this type of life insurance package provides a rider or additional protection if the family has to be hospitalized.
Well, that's how to choose life insurance that suits your needs and the best life insurance determinants that you can consider.
Advantages and disadvantages of life insurance
Basically, insurance provides protection to people left by the insured, especially if they already have family or financial dependents.
Life insurance is expected to help beneficiaries to maintain their standard of living.
However, there are still many who think that life insurance is not really needed for various reasons. One of the reasons life insurance is considered financially unprofitable.
Well, to find out what are the advantages and disadvantages of life insurance, here is the explanation:
Advantages of life insurance
- The advantage of life insurance is that it provides financial guarantees for heirs to get their rights such as education up to college level, the same standard of living even if the insured dies so that the family left behind can continue their life without being disturbed by their financial condition.
- Furthermore, the advantages of life insurance are reducing larger financial losses without any sum assured, especially if the insured is the backbone of the family who is very financially reliable.
- The advantage of life insurance is that it can also provide coverage in an emergency situation so that the heirs can complete the obligations left by the insured that have not been completed.
- Life insurance premiums are now more affordable and can be paid flexibly according to the ability of the insured based on a policy agreed with the life insurance company.
- The insured can choose the type of insurance product that suits his needs. Especially if you want to get two benefits at once from protection, investment and savings by choosing the right type of life insurance.
Lack of life insurance
- The lack of traditional life insurance is considered unprofitable because there is no investment value that can be obtained from the premiums paid by the insured over a certain period of time.
- In addition, the shortfall in life insurance is that the sum assured is not received by the insured because it is considered to only benefit the heirs as families who receive benefits from life insurance.
- Premiums are considered more expensive than other types of insurance.
- The sum insured can only be claimed once in a lifetime if the insured dies.
- As for the cash value of the return if there is no claim, the value is considered smaller than saving yourself with the same premium amount.
