10 Tips for Before You Buy Life Insurance

Having life insurance is always a good decision to protect other people in case of death of the insured and also to protect him if he suffers a disability. But before hiring life insurance, you have to take into account some recommendations.

Do it soon

It is the first advice for hiring life insurance. You have to keep in mind that life insurance becomes quite expensive over the years, logically, so it’s better to do it when you’re young. The latest INESE statistics say that 30% of people have life insurance, and that between 35 and 54 years is the age group in which more is contracted. The right thing to do would be to sign life insurance whenever the disappearance of a person supposes an economic problem for those who depend on it; that is, when you want to guarantee the future of the children, their studies, the family home, the survival of the couple … Normally, when the children are small, there are dependents or a mortgage to pay is more necessary life insurance.

Contract disability

Well-understood life insurance should start with oneself. The idea is to guarantee the economic situation of the beneficiaries, but it should also serve to assure the policyholder in case of a total and permanent disability that prevents them from working, in which case not only could not help their own, but even pay his own sustenance. This guarantee is optional in life insurance, but it should be contracted, along with others such as dependence, in the event that the policyholder cannot take care of himself, or serious diseases such as cancer, heart attack, stroke, etc.

Read (and understand) the conditions

It is true that it is not exciting to read a conditioner, but it is very important to know the exclusions and coverage of life insurance to avoid surprises. The policyholder may believe that he is covering the needs of his heirs and, however, that compensation is excluded if his death occurs in certain circumstances. Sometimes the conditions of the policy are cumbersome or incomprehensible, but the consumer should know what he is hiring; so do not cut yourself to ask for all kinds of explanations before hiring life insurance.

Name beneficiaries

If the policyholder does not designate beneficiary or beneficiaries in their life insurance, they will be the heirs. But, even if you wish to do so, it is always better to enter them in the policy with their names and surnames because this way you save paperwork. When the beneficiaries are not specifically designated as such, you must present an appointment of heirs made before a notary, an authorized copy of the will, previously liquidate the inheritance tax. On the contrary, if they are explicitly named, the company will pay the agreed upon identify themselves as beneficiaries. Another advantage of naming beneficiaries is that you can also set equal or different percentages for each one.

Compare prices.

Do not believe that all companies have the same prices: the offers are very varied and change throughout the year. In addition, policies can be hired almost tailored to the interests of each, with which it is possible to adjust the amounts to the needs. In our price comparator it is possible to see the enormous differences that exist between some companies and others, although it is important to pay attention also to the coverages.

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Compare coverages.

It is not enough to fix a certain capital and forget. The policies sometimes have unusual coverages that can be very interesting, such as extraordinary salaries to pay for the studies of the children, the mortgage, and the expenses associated with the death, the debts of the credit cards or double the capital for the children in the case of the two spouses die, for example.

Establish sufficient capital.

Life insurance costs more depending on the capital that is hired; that is, the more the policyholder wants his beneficiaries to receive if something happens to him, the more it will cost him. This capital must be established by an amount that meets the needs, but without the policy to shoot up in price. It is recommended that the guaranteed capital be at least five times the annual gross salary of the insured. This is so because it is estimated that in a family with a serious and sudden loss of income that one of the members contributes, it takes at least five years for the family economy to recover. But this is only approximate; before hiring life insurance, we will have to consider each case: if there is a mortgage, debts, dependents…

Customize life insurance.

Life insurance does not have to be standardized. Many companies already offer policies tailored to each client, and not only in the capital, but also in the coverages. The life insurance policyholder can contract everything they need, exclude what they do not want or have several insurance with different companies.

Do not lie.

Insurance companies ask to fill out and sign a health questionnaire for those who want to get life insurance, and sometimes even require a medical examination. Do not lie or hide diseases or unhealthy habits of life, because, in case of fatality, the insurer could refuse to compensate if it manages to show that there has been deception. And before hiring life insurance, it’s convenient.

Ask for help

Hiring life insurance is easy and cheap, and it can be done online, but it is best to ask for advice from an expert insurance broker who works with all companies and advise what is best in each case, what are the essential coverages, which are the dispensable, which capital is more suitable for each economy and where are the best prices. And another thing, there is no need to continue year after year with the same insurance or with the same company. Life is changing, and needs too. Signing a life insurance and forgetting, paying without looking at the receipt, even if it is low, is a mistake. It is advisable to adapt the capital and coverages to the needs of the moment. Whenever there are significant changes in life that affect the economic, family and personal, it is advisable to adjust the policy, more or less. And also be attentive to new offers. If you want advice, call us. It’s free.