With COVID 19 pandemic taking billions of lives and disrupting business activities across the planet, people have realised the importance of securing the financial future of their loved ones. This paradigm shift has moved life insurance on the top of everyone’s to-do-list.
A life insurance cover cannot prevent an unfortunate accident or pandemic – but it can (financially) protect you and your loved one. Under nowaday’s pandemic circumstance, most of you might have considered buying a life insurance plan, some of you might have already set the ball rolling.
However, it’s important to understand that buying a life insurance is not a child’s play! There are several things that you need to consider before you apply for your own life insurance policies. Here we have listed down some of the points to ensure you get the best coverage and package along with a complete peace of mind:
1. Life Insurance is Your Safety Net
Just like your home, car and health, you can also insure your life and the lifestyle of you and your loved one. Life can take unexpected turns, however, with the right life insurance plan your family can have the reliefs from financial stress. Different types of life insurance polices like Trauma (Crisis) or Total and Permanent Disability (TPD) orIncome Protection (IP) can make a lot of difference by keeping the beneficiary financially independent while recovering from a life-changing health issue.
2. You Don’t Always Need Complete Coverage
Buying a plan that covers a full range is a sane decision when you are young. However, as you get older and advanced through life’s later stages, for example, you may have paid off your mortgage and debts or no longer have dependent childern, or you may have sufficient investments that provide you with a steady income stream. Hence, you only need less life insurance coverage, in turn a much lower premium from your retirement funds but still avail full benefits of the life insurance.
3. Life Insurance is a Must – Even If You are Young and Healthy
With many young people losing their lives during this pandemic, it has become clear that when it comes to buying life insurances, age never matters. Even if you are in the prime of your life, having the right plan will ensure you and your loved ones are financially protected and relieved.
In addition, the cost of life insurance is based on your health condition at the time you purchase the plan. Taking life insurance when you are still young and healthy means it’s overall more affordable. At this stage, the premiums are generally not costly when you are in good shape as you are considered at lower risk.
4. Regular Review the Life Insurance Cover
It is important to review your life insurance coverage regularly. Life moves on dramatically, make sure that you have the right coverage at your current stage of life – you should have a plan that’s not a decade old. Make regular appointments with your insurance advisor to review the benefits and where it actually stands.
If you have any queries or doubts about insurance planning, contact SMART Financial Advisory. Our experts have years of experience in the industry and know every nuance of insurance planning and management.