When it comes to choosing a life insurance plan to protect your family it’s tempting to primarily look for a low-cost option. After all, this is a premium that you’re likely to be paying for many years and possibly the rest of your life so you don’t want to tie yourself in to something overpriced. However, sometimes low-cost premiums can be misleading, and if you’re not confident in what you’re looking for, you could end up out of pocket. Here are a few of the other factors you should consider before you take out a policy.
Inflation is a fact of life that all too many people overlook when they’re making long-term investments. What seems like good value today could be worth considerably less in an altered financial climate. Keep an eye out for insurance companies that offer a voluntary increase in your premiums to keep your lump sum in-line with the market value.
Some insurance companies will charge a much higher premium, or even refuse to cover you outright, if you’ve experienced health problems in the past. However, other insurers have a policy of not asking questions about your medical history, which can help you to get a fair deal. The attitudes towards health concerns in life insurance vary wildly, so if you have had any issues take the time to shop around before you commit.
There’s a common contradiction in life insurance wherein young people tend to think they don’t need it, and older people can fall into the trap of assuming they’ve left it too late for it to be of value. Neither of these assumptions is true. Some brokers cater specifically to older consumers, which allows them to negotiate better value from the insurers. If you’re younger you can often get a larger lump sum for a much lower monthly premium, as you’re likely to be paying it over a longer period of time. But again, this varies from broker to broker.
Value for money
Finally, before you settle on one life insurance provider, you should look at the additional benefits on offer. A slightly higher premium might be worth more if it’s more secure or flexible. Some brokers offer tailored partner insurance, while others have benefits such as a freeze on payments when you reach a certain age or have been paying for a certain amount of time. You should also read the small print carefully and balance out the exclusions. The last thing you want is for your loved ones to lose out due to a gap in your eligibility. Stick to trustworthy and fully accredited brand names to avoid disappointment, and take the time to explore your options. The peace of mind that comes from knowing your family is protected is well worth the effort.
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