Most of us have minimal knowledge on life insurance. This may explain why so many of us are not signed up for an insurance policy. Life insurance is important to guarantee the financial well being of our loved ones when we die. Let’s look at some common questions
Doesn’t my job cater for my life insurance?
Some companies offer life insurance coverage depending on their policies. You should check it up with your employer to find out the terms about life insurance in your workplace. You are only eligible to coverage if you have written agreements with your employer. Although life insurance at work is good, it may not offer the full coverage. When you stop working there, you automatically lose your insurance coverage. It is best to get your own life insurance from a life insurance service provider
Why do I have to take a medical exam to get a life insurance?
Most insurance providers require a medical exam before they qualify you for an insurance policy. With a medical condition, you are more prone to getting ill or dying at any moment which will be expensive on the part of the insurance company. If you have health issues, you can go for the no-medical exam insurance policies that will qualify you regardless of your heath report or medical past. The downside of this type of coverage is you will pay higher prices for a lower coverage.
The medical exam is carried out by the insurance company. Your doctor’ could present biases results so the companies prefer to carry out the exams themselves. The insurance company hires a diagnostic company and pays for medical exams. It is a basic physical exam testing for blood pressure, glucose and cholesterol.
Is life insurance expensive?
The price of your policy will depend on the type of life insurance you want to sign up for. Permanent or whole life insurance is the most expensive. If you are low on funds you can take up a term life insurance and make premium payments according to what your insurance company offers. Payments that are set annually are the most flexible.
Is a life insurance policy permanent or can I change it?
Life insurance companies have not set the insurance policies to be permanent. They are aware that in case anything comes up like financial crises, divorce or a job loss, you can lack funds to pay for your premium. They allow you to change the beneficiaries and the amount in your life insurance policy.
Do I really need life insurance?
Life insurance can help pay for your death. It can be used to repay your debts and mortgages so that the responsibility is not imposed on your family when you are gone. If you have people that depend on you financially, getting life insurance will prevent financial trouble when you die.
Which insurance policy is better? Permanent or term
Unless you can afford a permanent policy, term insurance policy is the better option for most people. Life insurance aims at covering your family needs while you are working and when you die. If you have your retirement covered and mortgage cleared you can afford to save up for a permanent life insurance.