4 Mistakes to Obtain When Buying Life Insurance

It is life and because of the very well-known nature of life's uncertainty, accompanied by the desire to protect their families in the worst case. But quite a few customers are cautious and careful approach to life insurance is not really the best. Being an important and effective financial instrument for a variety of purposes and very different life insurance will only maximize protection when the customer identify and avoid the four basic mistakes. down here.

  Mua life insurance too low The most common mistake people make when using life insurance is the "just have to be" mentality. On the one hand, it is true that even work-life insurance packages purchased by employees for employees with a level of coverage equivalent to one year's income also provide peace of mind for the protected person. insurance. On the other hand, the above figure is too low to be really effective financial shield for your family when the case needs to use it. The simplest example: In the case of a job loss, a one- or two-year compensation does not have much effect when the family home is being purchased, assuming a 20-year contribution to work. Target at least 10 or 15 times the current net annual income, the level of universal coverage sufficient to replace lost income while still ensuring regular home and school payments. of the family. If the barrier is an annual fee, be ready to ditch other investment options to achieve the above minimum life coverage. Always remember the purpose of your life insurance policy Think of life insurance too late Psychological wait time "perfect" is the main reason for many families delayed the purchase of life insurance. This is more true for life insurance, which is purely life insurance, which is something that you would not expect to receive after years of regular pay. Many people say "I will buy insurance after paying car / home" but forget that the purpose of life insurance is to help families pay in the worst case, the same is the mind Prioritize expenses that are not necessary but bring immediate satisfaction such as telephone, TV or sound system ... The sad news is that the perfect time will never come, just like quitting smoking. cigarettes or begin to exercise sports to protect the health, the principle as soon as possible is also the golden rule with life insurance. Purely in terms of cost, buying life insurance early, at an early age will make your recurring payments much lower than when your age is high and your health is poor. If you expect your income after 10 years to double, remember that the price of a life insurance policy can easily be increased three or four times today. As a consequence of not only losing protection for 10 years, the ratio of insurance payments to total income will be much higher if you decide to buy early. Choose insurance period too short An interesting fact is that the sensation of our time changes with age. More specifically, we are more and more short of time. For a young man in his twenties, ten years is going to be a very distant future, almost half of his life. But when that person is over forty years old, the next ten years will be a lot shorter, correlated to less than a quarter of a life span in the past. Choosing life insurance early is a wise decision, but it will only be effective when the insurance coverage is long enough. Considering a lot of calculations, but only based on the recurring fee and the total amount of insurance, it is easy for an underage person to choose too short a protection period. This is an important consideration for those who choose to buy life insurance alone, the psychology of saving up to the maximum cost will make only after ten short years customers will again stand before the insurance contract The higher the selling price, the more it takes into account the increasing responsibility of parents and families. In cases where the child's financial security is simply taken into account, the reasonable period of insurance will be 20 years for one child and 30 years for two children. New are waiting baby first. Done and forget Choose the right amount of coverage, long enough and earn a regular premium - you've reached 99% of the way to protect your family from unpredictable risks. But like top-tier sports, the last 1% is what makes the difference, being the launch pad for the gold medalist. Keep in mind that even if your insurance policy is nYour life may have been optimal and perfect at the time of purchase in the past, but it is likely that the cover of the shield projected ten years ago will no longer match the real needs of the day. Not to mention twenty years later. Inflation, currency risk, and macroeconomic changes, along with unpredictable out-of-pocket expenses, are likely to make customers uncomfortable by neglecting the security deal. Life insurance for decades. Insurance numbers and additional terms tend to be forgotten after a few years and make reckless customers unable to make the most of the adjustment times even when the initial agreement allows.
Life insurance is an important part of the financial plan of every individual and family. Here are four hints that will keep the pillars of the entire long-term insurance program covered. The most important points usually start with the simplest, most primitive points. In general, the most fluent insurance policy is always in line with a short-lived and close-up plan: always remember your original intent, do it as soon as possible, and consider adjustments if necessary. must change. Love, responsibility for the family will be the ultimate motivation for you to turn that planning into the perfect bodyguard.