Basic Life Insurance

Image Source: completefinancial.us

Life insurance is a legal contract between two parties namely the policy owner and the insurer. The policy owner agrees to pay a certain amount of money called premiums to the insurer. In turn, the insurer commits to pay the policy owner, also known as the insured, an amount of money in the event of a critical illness or an accident. If the insured died, insurer will be give an agreed lump sum to the beneficiary/beneficiaries designated beforehand by the insured. There are several life insurance companies here in the Philippines. These companies offer various life insurance products that would cater to a client’s specific need. Talk to a Life Insurance agent today!

SOME QUESTIONS YOU NEED TO ASK BEFORE YOU GET A LIFE INSURANCE POLICY

In purchasing a life insurance policy, make sure you’ve covered most if not all the bases. Don’t be shy about asking questions, wanting to know as much as possible about your policy is a mark of a responsible customer. Here are some questions you may need to ask your insurance agent or company:

• How long will the payment period be?
• What are all the benefits of this policy?
• Do changes in my health affect my policy?
• Will the premiums or benefits change annually?
• What if i can’t pay on a certain year?
• Where can i make the payments of the premiums?

Choosing the right insurance is a critical undertaking. We’re talking about money that you’re going to have to shell out regularly, in the hopes that your loved ones would be taken care of if something happens to you. With all the different kinds out there, what should you choose? There are two basic types of insurance, whole life and endowment policies. Whole life policies are life insurance contracts that will pay you a lump sum only after your death. While endowment policies are life insurance contracts that are designed to pay a lump sum after a specified term. Generally, premiums are higher for endowment policies than for whole life.
Normally, I always suggest getting an endowment policy, since I like the idea of getting my money back. I also like to look at endowments as forced savings or long-term investments. Also, with endowments, you get insurance during the critical period of your kids’ growing up years. Once they’re all grown-up and well-established, then it would be your turn to need the money for your retirement.

Life insurance companies look at a number of factors before they decide what kind of policy give you. One of the most important deciding factors is the overall health of an applicant. People in good health are certain to be given lower premiums because they are in the lower risk categories. People with pre-existing medical conditions, though, end up in the higher premium range because of their lifestyles. Smokers, people involved in dangerous activities such as racing and related sports are typically the ones included in the high risk category. All’s not in vain, though. A change in lifestyle such as quitting smoking can have your premiums lowered, because companies also take these factors into account.

For Vacation and Holidays – Workaholic people deserves to take a well-deserved vacation break. Taking a trip with your family or loved ones is ok once in a while so you can unwind and relax a bit. Holidays are also provided by the government or companies in order to give their employees a break. However, we still need to prepare some money for us to afford a good memorable trip.

To Buy a House – Renting out an apartment or small room is ok, but don’t you want to live a place that you can really call your own? Better think about it.

For Sudden Death – We are all aware that only God knows when we will have our grand departure from the place we live in at the moment. Sudden deaths do really cost a lot of money especially to your loved ones. Having an insurance means they don’t have to worry about some expenses.

For Education – We know that you are anticipating for the day that your child will hand you his/her diploma as a symbol that he/she indeed managed to finish a degree and is ready to face the challenges of the real world. It is important that you have money to support your child’s financial needs in school.

As a life insurance agent, one must be able to enlighten its potential clients by stressing out the importance of the product. Why do people save money after all?

For Emergencies –You will never know when you will need extra money especially if unavoidable circumstances occur. It is really important that you have set aside something so you won’t get broke.

For Retirement – Retirement simply means you’re no longer working. We actually know some people who would rather forget about retirement because they were not able to save money during the early days of their career.

For Family Needs – What will you use to pay for your monthly bills? How about your children’s education?

In the life insurance, there are some important factors that give success or failures of the product, the service and even its viability. Why did we say so?

Financial product insiders are very much aware of this fact. Product guarantees doesn’t mean that everything works out well. There are still some risks involved like the term of guarantee and even how reliable it is. We know some industrial lords and marketers that do their best to manage product risk every day. Three years ago, there is a stampede eager to lessen the guaranteed minimum interest rate if the fixed annuities are already applied.

Are you aware that life insurance companies are taking risks too?

According to Rene Lacape of eQuote Life Insurance, there is not a single week that someone does not inquire them about the current trends that can affect the newest insurance products available. He also stressed that he had been informing them by stating truthfully the risks that are accompanied with these products such as the over-all design, implementation and the marketing works as well.

Entering in an insurance business is not much a big risk for some especially if they are passionate about this field. In order to be successful, one must look at the elements that can affect the success of the sales and all that.

It is now time to decide what type of insurance policy do you need? There are only two types: Term Life Insurance, and Whole Life Insurance.

Term Life Insurances provide coverage for you in a specific period - whether 10, 20 or 30 years. Usually, your premiums will go up in time unless you buy a “level term” policy, which will guarantee that your premiums will stay the same. In case your policy expires before you do, you will be forced to renew your policy. A whole life insurance on the other hand, is coverage for your entire life, as long as your premiums are paid.

If you can afford it: Yes! Listed below are just some of the reasons why you should get one:

Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Here are some reasons people buy life insurance.
The death benefit may be used:
• To replace income the family would need to maintain their standard of living after the death of a wage earner.
• To pay off a mortgage loan and other personal and business debts or to create a rent fund.
• To create a fund for children’s education.
• To pay final expenses, such as funeral costs and taxes.
• To create a family emergency fund or a fund for a family member with special

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