Questions to Ask Yourself Before Applying for Life Insurance
Chances are, you have been worried about how your close relatives or family members are going to survive if the unexpected happens to you. The truth is that nobody knows what may happen to us tomorrow, but what you can do is choose the security of taking out life insurance. This is essential in ensuring that your family members are protected in the face of any unforeseen event. You must consider some questions to select the life insurance that best suits your needs.
5 Questions to Choose Your Best Life Insurance
1. What types of life insurance are there?
There are three types of life insurance, and each responds to different needs. So the first thing you have to evaluate before hiring life insurance is why you need it or what coverage you are looking for.
- Risk life insurance: In this type of life insurance, death is the trigger, the result of which is the payment of capital to the selected family members or next of kin
- Savings life insurance: A capital accumulates, and you can make it useful on the contract’s termination date. For example, when it is time for retirement or when your child starts college.
- Mixed life insurance: Combine the two previous modalities. In the event of death before the end of the contract, the selected close relatives, family members, or next of kin will collect the agreed capital. Otherwise, it is the insured himself who receives the accumulated amount of savings.
2. What resources do I have?
The second thing you must do is a personal audit. It is necessary to calculate your current expenses, what they will be in the future, and the resources and assets you own. It is important that you not focus only on current costs and income but also project the future. Do you have mortgages or loans? What is your wealth, and what returns can it generate? These calculations will help you know what capital to insure.
3. How is your health?
To take out life insurance, you must fill out a medical questionnaire with a series of questions about your state of health. Here, you should not hide any information. If the insurer considers it appropriate, you will have to pass a medical examination. The higher the insured capital, the more likely this checkup will be an essential requirement.
Age, state of health, and profession determine the sum to be paid in the insurance since they are aspects that determine the risk an entity assumes by validating the life insurance policy with us.
4. What is the most suitable product?
As in all markets, in the insurance world, you will also find a lot of offers. Some of them will suit your needs better than others. So keep in mind what is offered by each product, the different forms of settlement it has, the limitations it may have, or if you can personalize it by including or excluding coverage.