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10 Tips To Get You Started With Life Insurance In 2022

by Amarachukwu
Financial Planning Tips for Single People Living Alone

Introduction

Everyday life exposes us to risky situations that can strongly affect personal finances. An illness can destroy everything we have worked for on any given day.

Having life insurance is always a good decision to protect other people in case of the insured’s death and to protect himself if he suffers a disability. But before taking out life insurance, you have to consider some recommendations.

Situations such as disability or death can destroy the patrimony that we have forged for our family; for this reason, it is essential to have life insurance that protects our loved ones when we can no longer do so.

 

The offer of policies in the market is enormous; we recommend following a few steps before choosing a tool that fits your needs.

  1. Do it soon, and learn some lingos. 

 

It is the first tip to take out life insurance. Logically, life insurance has become quite expensive over the years, so it is better to do it when you are young. The latest statistics from INESE say that 30% of people have life insurance and that between 35 and 54 years old is the age group in which more people are hired. 

 

The right thing would be to sign life insurance whenever the disappearance of a person supposes an economic problem for those who depend on it; that is when you want to guarantee the future of the children, their studies, the family home, the survival of the couple.

 

Usually, when children are young, dependents or a mortgage to pay life insurance is more necessary.

 

Choosing life insurance is essential if you have family responsibilities and the proper economic functioning falls on a specific person. It has its raison d’être, and although the death of a loved one cannot be compensated by financial compensation, it is true that at least we are not left with a problem of this type. That is why we will analyze the ten best life insurance and, in turn, give the keys to its success.

 

Familiarize yourself with vocabulary. It is essential to know some terms that will help you make a good decision.

  • Coverage: This is the specific risk for which insurance will protect you.
  • Policy: is the document that contains the general rules of your insurance.
  • Sum insured: refers to the maximum amount the company will pay you if the covered claim occurs.
  • Premium: refers to the cost of insurance.

2. Contract the invalidity. 

Well-understood life insurance should start with yourself. The idea is to guarantee the economic situation of the beneficiaries. Still, it should also serve to ensure the policyholder in case of a total and permanent disability that prevents him from working, in which case not only could he not help his own, but not even pay his sustenance. 

 

This guarantee is optional in life insurance, but it should be contracted, along with dependency, if the policyholder can not fend for himself or serious diseases, such as cancer, heart attack, stroke.

 

There is unemployment insurance, medical expenses, cars, real estate, or personal. Prioritize your needs and be prospective, analyze what things or who are vulnerable.

3. Read (and understand) the conditions. 

Indeed, it is not exciting to read about a condition, but it is imperative to know the exclusions and coverages of life insurance to avoid surprises. 

 

The policyholder may believe that he is meeting his heirs’ needs, yet compensation may be excluded if his death occurs in certain circumstances. 

 

Sometimes the policy conditions are cumbersome or incomprehensible. Still, the consumer should know what he is hiring, so do not be cut in asking for all kinds of explanations before hiring life insurance.

4. Appoint beneficiaries. 

If the policyholder does not designate beneficiaries or beneficiaries in his life insurance, they will be the heirs. But, even if you want to do so, it is always better to record them in the policy with their names and surnames because procedures are saved. 

 

When the beneficiaries are not explicitly designated, it is necessary to present a designation of heirs made before a notary, an authorized copy of the will, previously settle the inheritance tax.

On the contrary, if they are explicitly named, the company will pay what was agreed to those who identify themselves as beneficiaries. 

 

Another advantage of naming beneficiaries is that equal or different percentages can also be established for each.

5. Compare prices. 

Do not believe that all companies have the same prices: the offers vary and change throughout the year. 

 

In addition, policies can be contracted almost tailored to the interests of each one, with which it is possible to adjust the amounts to the needs. 

6. Compare coverages. 

It is not enough to set a specific capital and forget about it. Policies sometimes have unusual coverages that can be very interesting, such as extraordinary remuneration to pay for the children’s studies, the mortgage, the expenses associated with death, credit card debts, or double the capital for the children in the case of both spouses die, for example.

7. Set sufficient capital. 

Life insurance costs more depending on the contracted capital; that is, the more the policyholder wants his beneficiaries to charge if something happens to him, the more it will cost him. 

 

This capital must be established for an amount that covers the needs, but without the policy skyrocketing in price. It is recommended that the guaranteed capital be at least five times the gross annual salary of the insured. 

 

This is because it is estimated that in a family with a severe and sudden loss of income contributed by one of the members, it takes at least five years for the family economy to recover. But this is only approximate; before taking out life insurance, each case must be considered: a mortgage, debts, dependents.

8. Customize life insurance. 

Life insurance does not have to be standardized. Many companies already offer policies tailored to each client, not only in the capital but also in the coverages. 

 

The life insurance policyholder can take out everything he needs, exclude what he does not want, or have several insurance companies.

9. Do not lie. 

Insurance companies ask those who wish to take out and sign a health questionnaire from those who wish to take out life insurance and sometimes even require a medical examination. 

Do not lie or hide diseases or unhealthy lifestyle habits because, in the case of fatality, the insurer could refuse to compensate if it can prove that there has been deception.

10. Ask for help. 

Hiring life insurance is easy and cheap and can be done online. Still, it is best to ask for advice from an expert insurance broker who works with all companies. It advises what is best in each case, the essential coverages, which are dispensable, what capital is most suitable for each economy, and the best prices. 

 

Another thing, there is no need to continue year after year with the same insurance or with the same company. Life is changing, and so are the needs. 

 

Signing life insurance and forgetting, paying without looking at the receipt, is a mistake even if it is low. It is advisable to adapt the capital and coverage to the moment’s needs. 

 

Whenever significant life changes impact the economic, family, and personal sphere, it is advisable to adjust the policy, more or less. And also, be on the lookout for new offers. If you want advice, call us. It’s free.

 

The 5 Best Life Insurance Companies In The World

Allianz

This company, Allianz, has unquestionable characteristics. His greatness and sound work are evident. Without going any further than in its Essential Modality, the following coverages and conditions are found:

  • The minimum entry age into the policy is 18 years, and the maximum age is 54 years.
  • The annual insurance premium is defined only according to the selected plan; it does not depend on the age and gender of the insured.
  • It doesn’t matter where you live or economic activity.

Mapfre

Specifically, Mapfre Vida Plus offers one of the best market conditions:

  • In case of death (whatever its cause), the beneficiaries receive the value of the protection revalued to date due to the Profit Sharing.
  • It is life insurance.
  • The value of protection is growing according to benefit sharing.
  • It is possible to borrow up to one year on the ransom values.
  • It is flexible since it allows you to pay the premiums for the time you choose and constantly maintain the acquisition age.
  • It is possible to suspend the payment of premiums and continue to be insured for a lower value.

Liberty Insurance

If you look at your insurance called Exequial, we have some excellent conditions:

  • In case of death of one or more of the insured, it guarantees the compensation in money of the expenses incurred in the death of the insured or any of the members of the insured group.
  • It is possible to ensure the primary member and nine other family members.
  • Age from 6 months of gestation to 64 years of age
  • Permanence is unlimited.
  • For policyholders over 64 years of age and up to 69 years of age, an extra premium of 50% is charged for the former and 40% for others on the cost of the plan’s annual premium.

Cleopatra

This company is among the best in the life branch due to its product. The conditions of this insurance are as follows:

  • There are special discounts for insured securities over $40 million.
  • It has special rates for women.
  • It has different coverages such as permanent total disability, serious illnesses, accidental death, survival, hospitalization assistance, savings.
  • It offers assistance in national or international trips for the member and his luggage.
  • Multiple options for the payment of your insurance.

 

Generali

The insurance company Generali presents us with a product aimed at those people who have to assume financial burdens. So their relatives will not have to face these obligations in the event of death. 

 

In addition to this, it can be extended with optional coverage, such as disability compensation, and receive a monetary advance if the insured suffers from a severe illness.

 

The minimum coverage, that is, death, can be contracted from 32 euros per year and its benefits are the following:

  • Death from any cause.
  • Management in case of death.
  • Second medical opinion.

Zurich

Those looking for financial peace of mind for their family do not hesitate to hire one of the most prestigious companies in the insurance sector, such as Zurich. 

 

The differential advantage offered by this insurer is to offer specific products, but at the same time very complete. The flexibility offered to adapt the coverage according to the insured’s needs, such as the assumption of new financial obligations (such as acquiring new personal loans), divorces, or more children in the family.

 

Death is the minimum coverage, which can be extended to disability. Its benefits are as follows:

  • Death from any cause.
  • Online will.
  • Digital life management.
  • Telephone advice after death.
  • Advice and management of successions.
  • Medical and nutritional guidance.

 

Fiat

The existing opinions in the Network on Fiatc are generally positive; this invited us to investigate their product corresponding to the life branch. 

 

The conclusion reached is obvious: Fiatc life insurance deserves a review of the ten best life insurance list. Its most basic coverage is death. However, it also covers the death of both spouses in the same accident. Optional coverages can extend it.

 

Its benefits are as follows:

  • Contractible insured capital adapted to the needs of the insured at all times.
  • The immediate advance of burial expenses.
  • Coverage of death due to third parties’ robbery, kidnapping, or criminal acts. In this case, compensation is increased by 20% (with a maximum of $18,000.

AXA 

AXA offers us one of the complete life insurances in the market, also with very simple contracting. The insurance is renewable until the age of 80, and the user can enjoy extensive coverage from 0.50 euros per day. About the life branch, AXA offers us various products so that users have the one that best suits their needs. Thus, we can find:

 

  • Protect Life: Ideal for the mortgage.
  • Life Protect Senior: Designed for people over 49 years old.
  • Repatriation Insurance: If you decide to live outside the country.
  • Dependency Plus: With dependency coverages.
  • Life Protect Woman: Designed for wives, mothers, and professionals.

 

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