Five Things You Should Know Before You Purchase Life Insurance

Posted by Johnson in Life Insurance on Aug 23rd, 2019 | 0 comments

Buying life insurance can seem like a necessary thing to do before it’s too late. It is, however, easy to decide that you want to buy one. But it can be rather confusing to decide on the type of policy to buy. It can also be difficult to understand all the bells and whistles related to life insurance.

Making a purchasing decision with confusion in mind can lead to poor selection of the life insurance policy. So, it is important to have all the necessary information with you before buying the right life insurance plan.
Here are five things to know before you purchase life insurance.

Different Type of Life Insurance Plans

There are two types of life insurance you can purchase – term or permanent.

Term plans are for a definite period of time. The time of the policy and the premium amount are fixed. The premium amount is decided according to your health at the time of the application. You can choose the term of the policy such as 30 years or 20 years.

Permanent plans cover the policyholder until death. You can decide on a fixed or variable premium amount. It will depend on the policy. The premium amount is determined based on the applicants’ health at the time of buying the policy. Permanent plans also have a savings attribute; as in cash value. The cash value is what makes permanent plans more attractive to buy.

Terms plans are simpler in structure while permanent plans can be a bit complex due to the saving mechanism. An insurance agent can help you understand the differences between the two, and how to decide on buying one over the other. But ensure that you work with independent companies or agents in this case.

To find the right independent agent, you can conduct a simple online search pertaining to your area; such as life insurance San Antonio. You can then check their websites to glean more information about their offerings or simply call them with your inquiry.

Consider Benefits First; Investment Later

Life insurance is first and foremost an insurance plan that can offer financial benefits to your family upon your death. So, it is important to buy life insurance as per its benefits. You must think of it as an investment as secondary. Consider it as more of a tool for managing risk than simply an investment.

Compare the Plans

When buying life insurance, compare different plans offered by different providers. Even if you have decided on either term or permanent policy to buy; it can help you to know the cost differences between the two. So, always check coverage offered and its premium costs of different types of life insurance plans before settling on one.

You can ask your insurance agent to provide you with different buying options. As per your unique needs, your independent insurance agent can find the optimal plans and help you make an informed decision.

Premium Rates depend on Several Factors

The premium rates for life insurance plans can differ as per the health and age of the applicant.

For instance, for a healthy young individual, it can be less expensive to buy a term life insurance plan. The premium will be generally lower in such cases. So, you need to pay attention to the benefits and then decide if the cost of the plan is worth it. But do know that buying life insurance gets costlier as you get older. If you smoke or have a serious medical condition; you may need to pay a higher premium amount.

Also, even if you are young and healthy; the premium cost of permanent plans will always be more than what you will need to pay for term plans.

Seeking Help may be Necessary

Yes, you can buy insurance online easily on your own. But you may find it rather complicated to find the right plan. For instance, there are many options available in terms of permanent life insurance plans alone. There are plans offering flexible premium paying terms. Then there are plans offering different ways to add interest to the accumulated cash value.

So, it is best to buy life insurance after consulting with experts.

Tips to Choose the Best Life Insurance

Posted by Johnson in Life Insurance on Dec 12th, 2018 | 0 comments

The insurance business is huge and a number of insurance companies that have come up in the last few years. So what makes a plan the best life insurance San Antonio? Is it the premium that it offers or the coverage that it provides? Read below to find out how to choose the best life insurance in Texas.

Buy a plan as per what you need

Your life insurance plan should be tailor-made for your needs. A life insurance in Texas that your friend may have bought may not be the best plan for you. The life insurance plan that you purchase should be based on your own personal situation. Someone who is a breadwinner of the family needs more amount of coverage as compared to someone who is just a student or just starting his life and does not have a lot of liability. So each individual will have a different requirement and the life insurance plan that an individual selects will thus be based on his needs.

What is your age?

Your current age plays a very important factor in deciding which life insurance policy you should buy. The younger you buy the life insurance in Texas plan the lower will be the premium and vice versa. It is thus important that you buy a life insurance policy as early as you can so that you save on the premium amount.

Choose the plan carefully

There are many insurance plans that are available for purchase. Some of them are a pure insurance plan that offers no return in case the policyholder survives the term period. There are other policies like the endowment plans that have a maturity amount attached to the policy which the policyholder gets back after the policy term. Each policy comes with its own pros and cons, and thus it is important that you thoroughly research on the same.

Coverage period

You need to be clear about the period till which you want coverage. The tenure of life insurance in Texas is an important factor to consider. A term plan, for example, should offer coverage until the policyholder reaches his retirement age. The retirement age is an important factor to consider in deciding the policy tenure.

Risk-taking appetite

There are many insurance policies that offer you investment benefits as well. If you are looking for a plan that also offers investment benefits, then you need to opt for one based on what your risk taking appetite is. So for example, a person with a high risk-taking appetite would opt for a unit linked insurance plan. Someone who is not ready to take high risk would opt for an endowment plan.

Income

The sum assured amount of the insurance plan that you buy should be based on your income. The amount should be decided such that if it is deducted from your income, it does not cause a lot of difference to your family and does not make them compromise on their living standards. Also, if you choose to buy a term insurance plan then the coverage should be at least fifteen times your annual income.

Before you buy a life insurance in Texas, it is important that you understand your personal financial position and what your financial needs are. This lets you choose the right life insurance plan. List your needs as per priority and then calculate the amount of insurance you would need for your family to be able to maintain the same living standard when you are not around.

Five Benefits That Make Life Insurance A Must for Everyone

Posted by Johnson in Life Insurance on Oct 5th, 2018 | 0 comments

Irrelevant of how much you earn you should not ignore the importance of buying a life insurance policy in Texas. No one knows what the future has in store for him, or she so do not delay the purchase. A number of them die every day because of illness or an accident. A premature death could be devastating for your family, especially if you are also the sole breadwinner of the house.

Purchasing life insurance in Texas takes care of your family’s financial woes and ensures that they have the same standard of living even when you are not around. A life insurance policy should be the first investment that you should make. Also the earlier you buy the policy, the more beneficial it is because it lets you enjoy a lower premium value.

Do not overlook these five benefits of buying a life insurance policy.

1. Buying a life insurance policy assures you peace of mind. You cannot control your death, but you do have control on how your family will survive after your demise. Buying life insurance San Antonio protects the financial health of your family. The amount is substantial and helps your family to sail over the troubled times.

2. A life insurance policy can also be an income replacement for you. Most of the life insurance plans let you purchase a rider that covers any loss of income because of disability. If you happen to lose your income, then the policy can cover the costs and ensure that your family maintains the same standard of living even when you lose your job. The income loss could happen because of a disability due to an accident where you end up losing your job.

3. A life plan is beneficial only when you stay invested in it for a long time. This in turn also helps you to achieve your long-term financial goals like saving for your retirement. There are life policies in Texas that save into diverse instruments and thus give you an option to choose the policy as per your risk taking capacity. The life insurance plans could offer you a regular income every month for all your life after you retire.

4. Be it a house of a car; these purchases create debts. Most of us have some form of debt, and if you were to die unexpectedly, then your family would have to bear the burden of these expenses. A life insurance policy pays off towards these debts in case of your sudden death. The plan also lets you withdraw a portion of the amount invested or take a loan against the policy.

5. The policy forces you to save. This instills discipline, and over time you see your investment grow because of the power of compounding.

Buying a life insurance plan gives you security. Your family does not have to dig into the savings for financial help in case you pass away prematurely.

A life policy in Texas should be purchased based on what your individual needs are. You may either opt for a pure insurance cover or opt for policies that have an investment component attached to it. Also, make sure that you choose the sum assured value carefully so that your family does not have to compromise on their quality of life. The sum assured value should be calculated keeping in mind the present living expenses, any debts to be paid and also the liabilities like a child’s education or marriage. The life insurance policies offer many riders which are highly recommended. However, take care to understand what these riders offer and then purchase them accordingly. It is also important to keep reviewing your policy from time to time to match the increase in your income and debts.

Life Insurance FAQs: Things You Must Know

Posted by Johnson in Life Insurance on Sep 20th, 2017 | 0 comments

Life insurance is seen as a major investment stance by most people today and saving up for your and family’s future is certainly the best thing you can do with your money. The insurance market is well-established and insurance companies offer a wide array of schemes and options to choose from. It is important for people to know every detail about their insurance policy and ways to choose insurance policies. People always have a few frequently asked questions (FAQs) about life insurance San Antonio or elsewhere in the US and we will discuss those questions and provide brief answers to all of them. Read on.

When do you need Life Insurance?

A lot of people have this question on their mind, when to buy a life insurance. Different people have different financial backgrounds and different life circumstances. The decision to purchase a policy depends on a number of factors your medical condition, your financial status to afford the premiums, number of people depending on you, whether you are wage earner for the family or not. You need life insurance when you know you have to start saving up for your family’s future and cannot risk to leave them behind with weak financials and debts.

Which Policy to Buy?

Once you know when to buy life insurance, you must also be aware what kind of life insurance policy suits your situation best. Mainly, there are two types of life insurance, term insurance and cash value life insurance. Term insurance is designed to last a pre-defined amount of time and generally last 10-15 years. Term insurance has lower premiums and don’t add up to accumulate a lot of cash value. Apart from term insurance which is defined by the number of years, there is permanent insurance which is not defined by a term and reaps greater cash value and long term benefits. While choosing decide if you want greater cash value as the desired outcome or the flexibility of a tenure where you can decide to pull out or continue with the policy for an extended period.

How much Life Insurance Do I Need?

The next most obvious question people have on their minds is the amount of life insurance cover they need. While some people only insure themselves, few people insure the entire family by investing on a family plan. You have to consider the costs you will be incurring from the premiums you would have to pay for these policies and decide if it falls under your budget. You don’t want to be neither under insured nor over insured as both don’t serve your purposes. The term of the life insurance plan and the cash value it returns for the premiums you pay also must be taken into consideration.

Do I need an Insurance Agent to help me?

People are also often confused whether they need an insurance agent to help them choose a life insurance policy. The benefits of having an agent by your side is that he/she will help you choose the best plans by curating a list of policy quotes that match your requirements and circumstances. Apart from helping you to choose a policy, the agent will help you choose the insurance provider and premium rates that come under your budget. When the time for claims come, you will be going through a lot of emotional turbulence and an agent can help you make the claims during those tough times. In addition, the agent will also update you about the changes in your policy, premium due dates etc. The bottom line is, an agent will reduce your work and if you are a busy person it is wise you have an agent to help you out.

What are the benefits I would be getting?

Lastly, one of the most common questions people keep asking about is the benefits they will be getting out of the policy. This is important to know because this will help you make strategic decisions about the long-term investment you are about to make. You have to analyze the cost-benefit of the investment, the amount of coverage your policy offers and the returns you are going to get at the end when your beneficiary claims it.