Life Insurance Protection: Things To Know Before You Buy A Policy

2007-03-08 10:33:40

( Insurance )



If you are thinking of buying life insurance for the very first time, you might be intimidated with the terms and the types of policies being offered to you by your local insurance agent. It is understandable that you are confused about the differences between term life insurance and permanent life insurance.

The first thing you should do before you buy any kind of life insurance policy is to understand your needs and why you need life insurance protection. Basically, you need insurance protection if there are people who are financially dependent on you. This is true if you have kids or if your parents rely on you for financial support. If you are single, it is also a good idea to purchase a life insurance policy if you anticipate that you will need it in the future. The younger you are, the cheaper your premiums will be.

You also need to determine how much coverage you need. There are a lot of tools available over the internet like online calculators that can help you get a general idea of the amount of coverage based on several generic factors like your salary, the amount of your mortgage and your household bills. However, these tools only give you an estimate and not an exact amount. There may be several factors that are not included in the online calculator. It would be better if you can personally consult with your insurance agent so that he can provide you with a detailed estimate.

You should decide what type of life insurance protection you are going to purchase. There are two basic types of life insurance: term life insurance and permanent life insurance. Term life insurance provides protection only for a specified number of years. Once the specified term is over, you would no longer have coverage. However, a lot of insurance carriers allow you to convert your term life insurance to a permanent one after expiration. Permanent life insurance protection on the other hand offers coverage until the day you die.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.