Life Insurance

No question: insurances – and especially a life insurance – are a vital part of your financial planning for your whole life.
Certainly experts can help you in making the right decision of which Life Insurance product to choose.
However there are also black sheeps out there so it could be a good idea to prepare and inform yourself before you ask them.
Knowing about options and possibilies on how to purchase a Life Insurance which is fitting your needs significantly reduces the risk to buy something wrong.
This article will try to provide some information and insights about Life Insurance.

First of all you need to keep in mind that Life Insurance is for protection purpose – not for saving money. Certainly there are products out there which combine both (Whole Life Insurance) but these cost a lot more than the so-called term insurances which is only for protection.
So probably it is a better idea to go for a term insurance to cover the financial risk of your death before a certain age to protect your family.
Beside that invest in other options to save and increase your money.

After that you should make up your mind on what you need in detail. It is definitely not like “the higher, the better”. You should choose a Life Insurance which is fitting your financial situation and will support your family. Dont go for any extra cash.
As a rough guideline take your annual net income and add a “0″ at the end (means multiply it by 10). This is a maximum sum you should go for. In many cases even just half the money would be enough.

After you got an idea about the money range of your Life Insurance, try to contact an independent expert. These experts can show you several Life Insurance products that will meet your financial goals. And there are always several options on the market. Be suspicious if this expert tries to convince you of just one product, especially when its on the first meeting.

Also ask any questions which you have in mind. A good expert will answer all of them or will research the correct answers for you. No single person knows everything about all finance products and even not about all existing Life Insurance products out there.
Check on any riders which are offered to you. Ask the broker in detail why they are recommended for your individual situation.

Before signing the Life Insurance contract, take your time and read the policies. You need to understand it in detail.
Again – any questions which you may have should be answered by your broker.

The decision about a Life Insurance should only be made once. And it should be made well informed and prepared.
Always keep in mind that this insurance has the duty to protect your family!
Any change of your Life Insurance or even a switch later on could lead to a complete loss of your premium.

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