Do you want to leave your family with a financial struggle once you have passed away? Purchasing life insurance is imperative. There are no certainties in life, and this insurance policy can help your loved ones to pay the mortgage, bills and such like once you are gone – it protects the ones you love. Not to mention that funerals alone are expensive, and this in itself will place a financial burden on your family if you do not have an insurance plan in place.
Having a life insurance plan is not enough; you need to make sure it is the right plan. There are many different providers and policies to choose from, which is why you must narrow down your search effectively. Keeping that in mind, let’s take a look at some top tips to help you choose the best life insurance plan:
- Understand your needs – It is important to take the time to determine what you require from your life insurance policy. There is no point taking out a plan if the amount of cover is not enough to help your family once you are no longer here. To determine how much cover you will require, you need to take into account current costs your family encounter and any potential expenses they may experience once you are gone. This includes the likes of mortgage debt, personal debt – such as personal loans and cars, education expenses, funeral expenses, legal expenses that may arise following a death, home duties that the policyholder managed and everyday living expenses, such as food, maintenance, transport, clothing and entertainment planning.
- Know the types of insurance – There are two main types of insurance – term and permanent. The latter will cost more upfront, but it will last the policyholder for a lifetime. On the other hand, a term policy will only last for a set period of time that is predetermined from the offset, for instance, twenty years.
- Fill in the application form correctly – The importance of filling in the insurance policy application form correctly cannot be stressed enough. A lot of people are tempted to lie, so that they lock in a better rate, but you will only get found out in the end. This will make your policy invalid, and, therefore, your loved ones will not be financially protected once you pass away.
- Make regular checks on your life insurance policy – It is vital to do this because you need to make sure your life insurance policy remains appropriate. If there have been any changes in your life, you will need to let your insurance provider know. This includes the likes of the birth of a new child, a change in occupation, an upgrade to a new home, the death of the beneficiary or a new marriage.
- Choose a good company and consult an advisor – It is always a good idea to use the services of a financial advisor, as they will help you to select the right policy for your goals and the right provider. Taylor Brunswick is an excellent choice. Taylor Brunswick wealth management services are in high demand, as the company has an extensive amount of experience and a team boasting expert financial know-how, so you can be sure they will help you to choose the right life insurance policy for your needs.
Nick Smith is the Wealth Managing Partner in Taylor Brunswick Group, a Hong Kong-based wealth-management firm that offers expert wealth management advice that will increase the potential to maximize growth for any individual or business.