The greatest thing about getting life insurance these days is that you have so many options to choose from. In fact, a lot of people could easily get overwhelmed by the sheer number of options made available to them. But, it still is important to be extra cautious when making your choice because not all life insurance products are created the same.
Well, even if every single life insurance policy has its unique features, the same thing holds true: that they’re the same when it comes to the purpose, which in this case is to leave a lump sum of money behind when you die.
For you to pick the right life insurance policy, it is imperative that you first learn what the major factors to consider are.
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It’s no secret that age is a major determining factor in choosing the correct life insurance product. In fact, the older you are the narrower your options are. And that also means the earlier you decide to get life insurance, the more options are made available to you. But if you’re 60 years old and above, you no longer are eligible to purchase basic term life insurance.
Majority of life insurance products can only be purchased right after you undergo a comprehensive physical examination. Obviously, the idea is for the insurer to be sure you are healthy. Therefore, it’s fair to say that the healthier you are the more affordable your insurance policy is.
According to statistics, women live about seven years longer compared to men. Because of this, it seems like life insurance products offered to women are less expensive.
Be reminded as well that your budget in purchasing a life insurance is a major determining factor in choosing which type fits you. Cheaper choices belong to term life insurance policies, so if you don’t have enough to purchase a permanent life insurance, you should start accepting that fact. The reason why a term life insurance policy is a lot cheaper is because it is only in effect for a particular period of time and that there is no cash value built up inside the policy.
Duration of Need
The duration of need is also a very important factor you have to put into consideration, more so if you’re interested in a life insurance policy that will protect you for only a specific period. For instance, you come to realize you want to get a life insurance policy, but you recently purchased a home on a 30-year mortgage. So, if your main concern is that you want to ensure your mortgage is resolved before you die, it means your best best is a 30-year term insurance policy.