1. Do it soon. It is the first advice to take out life insurance. Keep in mind that life insurance becomes quite expensive over the years, logically, so it is better to do it when you are young. The latest statistics from USA top life insurance companies say that 30% of people have life insurance, and that between 35 and 54 years is the age group in which they are hired the most. The appropriate thing would be to sign a life insurance policy whenever the disappearance of a person represents a financial problem for those who depend on it; that is, when you want to guarantee the future of your children, your studies, the family home, the survival of your partner … Normally, when the children are small, there are dependents or a mortgage to pay, life insurance is more necessary.
2. Hire the disability. Well understood life insurance should start with yourself. The idea is to guarantee the economic situation of the beneficiaries, but it should also serve to assure the policyholder in the event of a total and permanent disability that prevents him from working, in which case he could not only help his loved ones, but not even pay their own livelihood. This guarantee is optional in life insurance, but it should be contracted, along with others such as dependency, in the event that the policyholder cannot take care of himself, or serious diseases, such as cancer, heart attack, stroke, etc.
3. Read (and understand) the conditions. It is true that it is not exciting to read a condition, but it is very important to know the exclusions and coverage of life insurance to avoid surprises. The policyholder may believe that he is covering the needs of his heirs and, however, that compensation is excluded if his death occurs in certain circumstances. Sometimes the conditions of the policy are cumbersome or incomprehensible, but the consumer should know what he is contracting; so do not hesitate to ask for all kinds of explanations before buying life insurance.
4. Name beneficiaries. If the policyholder does not designate beneficiary or beneficiaries in his life insurance, they will be the heirs. But, even if you want that way, it is always better to include them in the policy with their names and surnames because in this way you save paperwork. When the beneficiaries are not specifically designated as such, it is necessary to present a designation of heirs made before a notary, an authorized copy of the will, previously settle the inheritance tax … On the contrary, if they are explicitly named, the company will pay the agreed upon to those who identify themselves as beneficiaries. Another advantage of naming beneficiaries is that the same or different percentages can also be established for each one.
5. Compare prices . Do not believe that all companies have the same prices: the offers are very varied and change throughout the year. In addition, policies can be contracted almost tailored to the interests of each one, with which it is possible to adjust the amounts to the needs. In our price comparator it is possible to see the enormous differences that exist between some companies and others, although it is important to pay attention to coverage as well.
6. Compare coverage. It is not enough to set a certain capital and forget about it. Policies sometimes have unusual coverage that can be very interesting, such as extraordinary remuneration to pay for the children’s studies, the mortgage, the expenses associated with the death, the debts of the credit cards or double the capital for the children in the case of the two spouses perish, for example.
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7. Establish a sufficient capital. Life insurance costs more depending on the capital that is contracted; In other words, the more the policyholder wants his beneficiaries to collect if something happens to him, the more it will cost him. This capital must be established for an amount that covers the needs, but without causing the policy to skyrocket in price. It is recommended that the guaranteed capital be at least five times the insured’s gross annual salary. This is so because it is estimated that in a family with a serious and sudden loss of income contributed by one of the members, it takes at least five years for the family economy to recover. But this is only approximate; Before hiring life insurance, each case will have to be considered: if there is a mortgage, debts, dependents …
8. Personalize life insurance. Life insurance does not have to be standardized. Many companies already offer policies tailored to each client, and not only in terms of capital, but also in coverage. The life insurance policyholder can take out everything he needs, exclude what he does not want or have several insurances with different companies.
9. Don’t lie. Insurance companies ask people who want to get life insurance to fill out and sign a health questionnaire, and sometimes they even require a medical examination. It is not necessary to lie or hide illnesses or unhealthy habits of life, because, in case of fatality, the insurer could refuse to compensate if it can demonstrate that there has been deception.
And before buying life insurance it is advisable …
10. Ask for help.Hiring life insurance is easy and cheap, and it can be done online, but it is best to seek advice from an expert insurance broker who works with all companies and advises what is best in each case, what are the essential coverage , which are the expendable ones, which capital is most suitable for each economy and where are the best prices. And another thing, there is no need to continue year after year with the same insurance or with the same company. Life is changing, and the needs too. Signing for life insurance and forgetting, paying without looking at the receipt, even if it is low, is a mistake. It is advisable to adapt the capital and the coverage to the needs of the moment. Whenever there are significant changes in life that affect the economic, family and personal sphere, it is advisable to adjust the policy, more or less. And also be attentive to new offers. If you want advice, call us. It’s free.