Which insurance company is the best? Which life insurance is the most appropriate? There is no universal answer to these questions. Life insurance is always a commitment of price, coverage of insurance coverage, exclusions and individual requirements of a person. In the article I offer 6 tips on how to choose a life insurance policy.
What’s most important to you? Pay as little as possible for life insurance, just to have something or to be well insured for a reasonable price?
This will be solved before you start selecting and setting up a suitable life insurance policy.
First, find out what you need, then look for appropriate insurance
Choosing and setting a life insurance policy is more important than choosing an insurance company. The offer of life insurance is gradually coming to terms both in terms of quality and also in terms of price.
The best life insurance is the one that solves the unexpected life situations associated with a loss of income exactly according to your needs.
If you have a life insurance policy to pay for something, check if you need it at all. It is nonsense to pay for something you do not have the chance to use or something that is unnecessary for you. Pay only for what can really threaten your family budget and cause you noticeable loss of income.
tips on how to choose a life insurance policy
Choosing insurance risks
The most important thing is to insure those risks that will cause long-term loss of income and could affect the standard of living of the insured and his family. These include death insurance, insurance against permanent disability or illness, critical illness insurance and long-term disability.
Other insurances will cause short-term loss of income. For example, daily compensation in case of accident or PN is often more advantageous to cover by own savings.
Settlement of income
The amount of the sum insured must be assigned to each risk. The amount should be such that the insured and his family maintain the standard of living at the time of the insured event. The determination should take into account family income, assets, liabilities and subsistence expenses.
It may sound like a little morbid, but you can get the best out of it by imagining a situation that happens with every single risk. Think about how it would affect you and your family and see what amount of money would be needed in that situation.
Do not miss insurance conditions
Before entering into an insurance policy, please read the terms and conditions that provide useful information. Exclusions from insurance, waiting times, carriage periods, list of diseases covered by insurance and various pricing tables.
These are the things you need to be familiar with. I know, it probably will not be nice reading. However, you know in advance when the insurance company will not pay the insurance benefit and when it will pay.
The price is important, but not the most important
For many people, the most important factor. But as far as insurance is concerned, it is important to find the price / quality ratio, while the price is second only. First of all, it is important to be covered so that the insurance company pays out the amount that covers the costs associated with it.
Choosing an insurance company
You can choose from 23 insurance companies. Enough to choose not to choose from the many products they offer. When choosing, you should take into account the name and financial strength of the insurance company, making the selection slightly easier.
As far as specific life insurance is concerned, it is best to compare the offers and find the price / quality ratio. It will take more time, but it will certainly bring fruit.
Complete the health questionnaire responsibly
Based on this questionnaire, the insurance company accepts you into insurance. Always fill it truthfully. If you do not do so, the insurance company may refuse the insured benefit. It is a thing that is often neglected and many people have paid insurance unnecessarily.
Do not use life insurance to save money.
No one can forbid you. You can also save money in the insurance policy. However, if you like your money and have studied the full scale of fees, you will certainly not do so. Any argument for saving in life insurance originates elsewhere in the convenience of saving. There are relatively few situations where it really pays off.
If you have such a life insurance policy, look at what you really have insured there. Some may find out that the insured is hardly at all. That means you only have expensive savings. True, better than spending money. But it is also true that there are other options.
Risk life insurance
Risk life insurers are in many cases a good choice. It is flexible, without the need for expensive savings and often financially more profitable. At the same time, it provides the possibility to insure more family members on a single contract and thanks to this you can get discounts on premiums.
Insurance companies that offer risky life insurance are increasingly. What you can meet most often is life-assurance at Allianz, Generali, Wustenrot, Axa, Uniqa, Aegon, NN and Metlife.
Each of them offers certain specifics in performance, conditions, lockouts, but also in price.
How do I choose risk life insurance?
- Choose insurance risks.
- Calculate the amount of claims.
- Make a summary of all risk insurance offers available.
- Choose the insurance that fits you best in terms of quality and price.
If you do not want to worry about choosing an insurance company yourself or do not have the time to do so, contact financial advisor to help you choose and set up life insurance, saving you time and money.