Life assurance is there to help your dependents in the event of your death or disability. If you’re no longer able to provide for your family, your life assurance policy will be disbursed in one lump sum to your family members. This way they can take care of any outstanding debts and expenses without worrying about where the money will come from.
How to evaluate “the best”
When it comes to life assurance, you want to find the best company for you. The best will be unique to your personal circumstances. Although there are definitely some traits of a life assurance company that will be common to everyone, not everyone will need the same type of policy.
Before you start hunting for a life assurance policy, consider what you want out of it. Are you simply looking for coverage for a limited amount of time? Are you looking for a policy that you can withdraw cash from? Ask yourself these questions before you start your search and you’ll be able to find what’s right for you.
Points to consideration
Other things to consider in quality life assurance companies are their track record, their terms and their availability for advice. Their track record with other clients is a clear indicator of the quality of a life assurance company. You can search online for feedback from other clients and see what they have to say. If a particular company has a lot of negative feedback, you better steer clear of them. You also need to evaluate their terms.
Make sure you know what a company’s policy is on borrowing against your funds. Evaluate their penalty for early withdrawal and see their fee schedule. Their availability is also another important factor. See how often their customer support lines are open and make sure that you can get the help that you need. There’s no point in signing with a company that isn’t available to talk to you when you need them. If you have trouble reaching someone on a regular basis, just think of how difficult it will be for your family to reach them when they need them.
Deciding on the right price
Another big factor in what will make a particular life assurance policy right for you is price. You need to find a policy that has a monthly payment that is reasonable for your budget, while still providing you with the benefits that you need. Before you jump on a plan that offers great benefits, make sure that you can afford the monthly payments. You wouldn’t want to lose your plan due to a financial crisis.
Term life assurance is the cheapest available, but there is no cash value on the policy. Once your term is over your policy disappears. A whole life cover policy is a bit more expensive each month but you have the option of borrowing against your policy. Finally, universal life cover offers an investment option that can contribute to your overall financial picture. In exchange for this type of service, you’ll have to pay the most per month.