Save on Life Insurance Policy
With the uncertainty that comes with life, it is only appropriate for people to invest in life insurance covers. Those who undertake a life insurance cover are rest assured that their families can take care of themselves when they are no longer around. Barring suicide, civil commotion, fraud or riot, all deaths are eligible for coverage under most life insurance policies.
Kinds of life insurance policies
When seeking a life insurance cover, policy owners have an array of policies to select. These policies differ from one another in terms of their features. The following are some of the policies related to life insurance cover:
- Whole Life insurance policy: This is an insurance policy that requires policy holders to pay premiums for their whole lifetime. Basically, the payments stop upon the deaths of these holders. It does not take into account the additional needs of the insured persons. Perhaps, this could be the reason as to why it is quite unpopular among many companies.
- Money Back insurance policy: This insurance policy is normally active when policy holders need money for their personal needs. It is quite a handy insurance cover for funding special occasions like weddings, education or family reunions. With this policy, the insurers pay the policy holders within the agreed period. In the event that the holder dies before the expiry of the policy period, his or her family members will benefit from the amount.
- Endowment policy: This is one of the most popular life insurance policies in the market today. This is because it combines savings and investments with risk cover. It is always a win-win situation for policy holders whether they die or survive within the policy’s term. Either way, policy holders should expect to get the assured sum in addition to extra benefits. Under the endowment life insurance policy, policy holders can benefit from additional benefits like marriage endowment and double endowment plans.
- Term insurance cover: This is a 100% risk cover that only guarantees payment when the policy holders pass away within its duration. The deceased’s family members are normally the main beneficiaries of the insured amount— a fact that the policy holders must indicate when taking the cover. One thing to note is that the holder cannot get any amount after the term of his or her cover expires.
Features of a good life insurance company
Many people have bore the brunt of rogue insurance companies. These life insurance providers go under taking with them the financial cornerstones of many clients. Good life insurers function through certain tenets that enable them to satisfy their customers’ demands. Examples of such features include:
- Appropriate licensing: All insurance agents and companies must possess a license of operation as per state laws. NAIFA (National Association of Insurance and Financial Advisors) has a list that details the effective insurance providers.
- Healthy financial state: The most effective life insurance company must be financially healthy. They boast of high financial ratings, which ascertain their ability to settle clients’ claims competently.
- Compatibility with consumer needs: All insurance companies must be in tandem with the needs of their clients. This involves executing a personal approach to customer service.
- Proper pricing: Esteemed life insurance providers create a balance between quality services and pricing. Their services must be more than worthy of their premiums.