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

HP (Hewlett Packard) is one of the most popular and recognizable computer, laptop and accessories brand on the planet. The HP brand has come out...

Everyone would love to have a spa-style bathroom in their home, as the days are usually filled with busyness and stress and it would be lovely to...

Millennials are investing enormous sums of money in cryptocurrencies in an attempt to become the next ‘Bitcoin millionaire’. As long as you have...

The pickup truck is an iconic American vehicle, accounting for more than 18 percent of total vehicle sales across the country. The 2019 Ram 1500...

You'll be hard pressed to find a home décor topic more divided than the question of wallpaper. This wall covering saw a period of great popularity...