When the most important and life-changing decisions that a person can make are mentioned, buying life insurance will be right at the top of the list. Apart from catering for your loved ones when you are gone, life insurance can be useful in a myriad of ways even when you are alive. While it is crucial to have life insurance, it is even more critical to buy the right insurance plan. With so many insurers offering life insurance, how can you choose wisely? One of the most important aspects to consider when buying life insurance should be the duration of the policy. You can either opt for term life insurance or a lifetime policy. Term is when you need the insurance only for a specific period, say when your children are growing up or as long as your mortgage lasts. But if you need life insurance as long as you live, permanent cover is the best option for you. The quality of a life insurance plan greatly depends on the pedigree and caliber of the insurance provider.
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So it pays to be meticulous when selecting an insurer. An insurance company worth its salt should have an admirable claim settlement ratio and should not delay in honoring claims without reason. In addition, find out how they treat clients and how courteous their customer services are. One issue that should never be underestimated when buying life insurance is the cost of the insurance plan. With many players in the insurance sector, it is not surprising to find the same type of plans priced differently. To keep the plan active, it is imperative to pay regular premium amounts. In case of failure to keep up with the payments, the life insurance plan will lapse and you will lose your cover. Thus it is advisable to choose a plan with affordable premiums. Do you know that it is highly recommended that you name a beneficiary in your life insurance plan?
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Well, now you know that the person who will receive the proceeds of the policy should be named but not just anybody. This means that you shouldn't name your estate if there are tax problems or implications. Minors too wouldn't be able to receive the funds until they are of age. When buying life insurance, it goes without saying that it is advisable to buy a plan while you are still young, strong, and healthy. Why? The older you get, the more the cost of the life insurance plans will go up. In addition, if you are not as healthy as you used to be, the rates will definitely be higher. As a warning, always tell the truth while applying for life insurance. Failure to disclose all the aspects can lead to a refusal by the insurer to pay a claim.
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