The one thing that we have certainty for as humans is our death. Its inevitable nature is the primary reason why we work so hard to leave a legacy. For most people, legacy centers upon the welfare of those that we leave behind. These include our families, nation, or humanity in general.
In this post, we share tips to help you pick the right policy without breaking the bank. Use them to decide on life insurance that you can comfortably finance as you build your legacy.
How to choose the right family insurance policy
Compare multiple providers
There are hundreds of life insurance providers in the country today. And while they all aim at safeguarding the future of their clients, they charge varying rates for their premiums and other fees. You have to remain open-minded and seek to achieve an optimal balance in cost versus benefit.
Put otherwise, identify an insurance provider that can secure your family’s future needs while charging you reasonable fees. Compare rates that various providers charge and the benefits they guarantee when you pass away.
Clarify your needs
Do you need a life insurance policy for a short-term or long-term benefit? The nature of your family’s needs determine the policy that’s suitable to take. You can either choose between Term Life or the Whole of Life insurance policies.
The term-based policy provides coverage when you pass away within a pre-specified period. For example, you can choose a 10-year policy that covers your family if you depart within the 10-year period. This type is suitable for short-term needs like paying school fees or mortgage repayment.
The Whole of Life policy provides coverage for long-term family needs. You have to actively pay the due premiums until your death or maturity of the policy if applicable.
Assess the provider’s credibility
Below are three questions that can help in testing a provider’s credibility:
How long has the provider been in business?
A company with longstanding experience in family life insurance can understand your needs and offer an appropriate policy.
Is the company reliable in payment of death benefits?
Find out your provider’s claim to settlement ratio from its clients and unbiased reviewers. An insurer with a higher record of settling claims than rejecting in the recent past is a viable option.
What’s the nature of its terms and conditions?
A trustworthy provider is clear on the rules of engagement of each policy. Vague terms and conditions are subtle signs of an unreliable insurer.
Buy a policy early
Family life insurance providers use age as a factor in determining the premium rate to charge a policyholder. Often insurers consider younger people to be healthier with fewer life-threatening risks. Therefore, the younger you are when buying a policy, the likely your committal fees will be lower than if you were older.
Besides, some policies mature after a while allowing you to claim a share of the settlement while still alive.
Prioritize quality customer support
How is your preferred family life insurance provider handling existing clients? The quality of customer support matters a lot since it influences your understanding of the available family policies.
Although you can find reliable information in the FAQs sections, a provider that allows you to ask personalized queries is more helpful. Find out what other customers say about the client support system and their ratings. Is the insurer receptive, ignorant, or hostile in responses?
Use a single provider for your policies whenever possible
If possible, buy all your family life insurance policies from one provider. Most insurers offer discounts on monthly premiums when you purchase several insurance plans. This way, you can save some money or lessen the claim/settlement burden when you pass away.
Consider providers with accelerated death benefits
Choose a provider that can issue your family the death benefits when you have a terminal illness and less than 12 months to live. Remember the right policy helps your family handle events that cause your absence or cease your usefulness.
The family life insurance policy can best be described as a supportive friend to your beloveds in your absence. We hope that this article has helped you understand how to choose the right policy that suits your specific needs.
If you still need more clarification on anything regarding family life insurance or related cover, please don’t hesitate to ask and we’ll be happy to assist.