Oct 09 2009
Baby Boomers and Life Insurance – What You Don’t Know Might Hurt You
For the Baby Boomers and Midlifers, this October – the Month of The Harvest Moon!: The focus is on Planning for Retirement. We’re talking about finance, and lifestyle choices. Planning for those days when after all your hard work you can “harvest” the rewards – whether that means travel, time, golf, or doing just what you want with your life. This post is all about life insurance – the things you need to know before you invest.
Guest authorJ.J. Yong shares some advice
. . . . .
Top 10 Things You Must Know About Life Insurance
Guest Author: J.J. Yong
The more you know about how your life insurance works, the easier it is for you to seek for the right insurance plan. The more research you have made on life insurance policies, the better for you to avoid any possible pitfalls when it comes to insurance purchase.
Here is a list of 10 key things on life insurance which everyone should be aware of,
1. Shopping around saves money
It definitely pays to shop around because premiums vary widely across one Insurance company to another. Getting yourself equipped with the necessary insurance policy information will facilitate your searching for the best optimum Insurance plan.
2. Just get what is needed
Make sure you are not under insured because you are unlikely to get the needed benefits if you are under-insured. Also ensure that you do not over-spend on life insurance because buying more than what you need is a waste of money, just get what you believe is sufficient.
3. What happens in the event of delinquent payments?
You are normally given a grace period of 30 days to make payment on your premium. However if you have not paid within the grace period, your policy will lapse. In the case of permanent insurance policy, if you are late on your payment, your cash value amount will be deducted accordingly by your number of delinquent days.
4. What is the best age to get your Insurance?
The younger you are, the lower your life insurance premiums will be. The reason is because your risk of dying is lower when you are younger.
5. The healthier you are, the better the rates
Healthy people tend to get the best deals when it comes to life insurance.They will be able to get a better rates as compared to those with health problems, e.g, smoking, being overweight or with heart disease.
6. Is the result of my medical exam crucial?
The status of your medical exam results will determine what kind of Insurance rates you will be offered by the insurance company. Your height, weight, health, life-styles are all taken into consideration.
7. Will having more than one policy cancel the other one out?
Not at all. If you have a credit life insurance policy and a whole-life insurance policy, and you paid all the necessary premiums, both policies will pay out according to the initial terms of the policy. The credit life policy will pay off your credit card balance and the death benefits will be paid out on your whole life policy.
8. Can I buy a life insurance policy on someone else?
Yes, if you have insurable interest for that person, normally for a close relative or friend, you can buy insurance for them. However, the official stipulation here is that that person must know about it.
9. Review your coverage regularly
Changes in your life signals the need for a review of your overall financial plan. Always ensure that your coverage is intact with the changes you have gone through such as marriage, birth of a child, impending retirement, retrenchment, promotion have effect on the insurance coverage that you may need.
10. Compare the ratings granted on your finalized list of Insurance companies.
These ratings are provided by several rating agencies such as S&P and Moody’s. Choose a company with higher rating which has more renowned reputation and consider for their better services and fast claim processing.
For more information about life insurance rates and life insurance companies, visit LifeInsuranceEssentials.com.
Article Source: http://EzineArticles.com/?expert=J.J._Yong
http://EzineArticles.com/?Top-10-Things-You-Must-Know-About-Life-Insurance&id=2985455
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