The Three Key Things To Look For In A Life Insurance Policy

Life insurance is a personal insurance product that allows an individual to designate a beneficiary in the event of their death. When the insurance policyholder passes away, their beneficiary will receive a pre-arranged sum of money.

We know that selecting a life insurance policy can be a complicated, stressful, and time-consuming commitment, especially given the ever-increasing number of life insurance plans and providers on the market. To give you a head start on policy research, we’ve listed three key things you need to look out for when considering a life insurance policy.

1. Is Your Life Insurance Policy Cost-Effective?

Plan selection is generally the main factor in determining the cost of your life insurance plan. However, the affordability of your life insurance plan will also depend on a range of personal factors, including your age, medical history, driving record, and occupational risk. All things being equal, term life insurance is significantly more affordable than permanent whole life insurance. In fact, for the same death benefit, a whole life insurance policy can be between 5 and 15 times more expensive than a comparable term life insurance plan.

2. Does Your Life Insurance Policy Have Payout Conditions?

When a life insurance policyholder passes away, their beneficiary may receive an immediate or delayed payout. To prevent your beneficiary from becoming entangled in a payout dispute, look for plans offering a 100 percent payout on day one.

3. Does Your Life Insurance Policy Include Any Living Benefits?

Contrary to popular belief, there are many ways a life insurance policy can help you, the insurance policyholder, while you’re still alive. In fact, modern life insurance policies now offer formal living benefits. The most common living benefits currently offered by life insurance providers are premium reimbursement and partial pre-death payouts for individuals suffering from chronic illnesses.

Photo: Pexels

More

Decorating a baby’s nursery can be a rewarding and time-consuming experience, as it is important to keep safety as the primary concern. All...

If you’ve gone through a hurtful breakup, you understand that the thought of finding true love again may bring up a myriad of feelings. You might...

Even as unemployment reaches a 17-year low, America’s wealth gap continues to increase. According to the Federal Reserve, the top 1 percent of...

If you happen to like reading as a hobby or if you tend to have some work to do away from the office, making a little spot in your bedroom for a...

Feng Shui experts believe that people who may be having problems in their career or love life might be experiencing the trouble because of the way...

Latest Fab Stories

These days, most parents have to take whatever job they can get-- sometimes they have to take two. As more and more people are at the mercy of...

Black has a horrible reputation, doesn’t it? We associate it with things like depression, gloominess, evil, and bad luck (in the case of black...

More than one-third of adults snore at least a few nights each week. The noisy sounds of snoring occur when there is an obstruction or blockage...

How many couples do you know who are truly happy? Sure, everyone seems happy in the beginning-- but how many of them settle into lasting happiness...

Joint pain occurs when there is physical discomfort where two or more bones meet to form a joint. Joint pain can occur for a variety of reasons....

Every one wants to genuinely be loved, but sometimes it just doesn’t feel like you are loved very much. Maybe you’ve been through a tough...

Chandeliers are possibly the most underestimated type of lighting when it comes to home décor. Many people think that chandeliers are only for “...

If home is where the heart is, the kitchen is where the heart is. You spend a lot of time in your kitchen space whipping up delectable culinary...

For girls, there is nothing like their bedroom. It is their own little world where they spend most of their time as they get older. With that...

No matter how much you love your little darlings, sometimes they can really put your parenting skills to the test. Five things will help you...

The Apple iPhone is considered the flagship of smartphones, but buying one can be confusing to anyone who isn't a total gadget junkie. With all...