#mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; }
/* Add your own Mailchimp form style overrides in your site stylesheet or in this style block.
We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */
Buying a life insurance policy for the first time can be intimidating, especially if you don’t feel knowledgeable enough to make an informed decision in this regard. The first thing you need to realize — and that will either reassure you or wreck your nerves — is that there are a lot of insurance products out there, which means you don’t have to go for a one-size-fits-all policy.
It also means that you really need to follow some sort of process if you don’t want to find yourself purchasing a product that doesn’t meet your needs. Here are 5 things you absolutely need to keep in mind before purchasing a life insurance policy at emma.ca or another insurance provider.
What Do You Need Insurance For?
It goes without saying, but let’s say it anyways : you should never buy an insurance policy just because. The first thing you need to do is to carefully assess your needs and to think about the reasons that led you to life insurance in the first place.
Do you earn a significant portion of your family income? Do you have people depending on you? What would happen to your family financially if you were to be injured or die? These are the type of questions that will help you decide whether you need life insurance or not, and if you do, what type of life insurance exactly.
What Type of Policy Should You Go For?
There are 2 basic types of life insurance, which are term (or temporary) insurance and whole life insurance. Term insurance is designed to provide you with indemnity against events that would otherwise be financially devastating for your intended beneficiaries (a sudden invalidity, a terrible accident, your death, etc.).
You can choose the duration of your term as well as the amount of the payout should something that fits the specifications of your policy happens to you. Term insurance is a great tool to cover specific, major expenses (a mortgage, college education, etc.) in case one of the breadwinners of a household can no longer provide the same amount of financial resources.
Unsurprisingly enough, whole life insurance are policies designed to cover you during your entire lifetime so that at the end of your natural life, your beneficiaries receive a predetermined payout (given that you didn’t violate any of the conditions of your insurance policy).
Can You Afford Life Insurance Premiums on the Long Run?
This is another point that reads like a given, but still. Even term insurance policies are designed for several years, and a premium that seems affordable today can feel more and more like a drag on your budget as time passes.
Whole life insurance policies are usually more expensive than term insurance policies, so if one of the latter meets your needs, you should definitely go that route, but even then, think long term: the few dozens bucks a month that don’t seem like a big deal today can slowly but surely feel heavier as your life goes on and new expenses pile on your budget…
What Are You Insured For?
Again… it’s less obvious than you think. A lot of people simply “assume” that their insurance covers this and that, but at the end of the day, what an insurance covers is not a matter of opinion but a matter of what the actual contract says. Don’t assume anything and don’t even trust your insurance broker: trust what you can read with your own eyes and if you don’t understand clearly what you’re entitled to and what your obligations are, find an insurance provider capable of drafting readable policies.
Will You Actually Get Paid?
Last but not least, you should take a look at the settlement history of the insurance providers you’re considering doing business with. The whole point of getting insurance in the first place is to get money if and when things get tough. So if you’re doing some research and it turns out that a company you’re considering signing with has a history of not paying / honoring its policies, you should look for coverage elsewhere.
Even if you’re far from being an expert on the matter, getting an insurance that actually meets your needs is not supposed to be that hard. Keep these 5 things in mind and you should be fine.