23 Feb Choosing a Life Insurance Plan
There are many life insurance plan options so how do you choose the best life insurance for your needs? Before you buy life insurance you need to do a little research to compare the various plans. This need not be difficult. Anyone with a computer can compare life insurance plans online to find out what is available and which would be most likely to suit them.
Life insurance need not cost the earth. Sometimes basic, cheap life insurance will give enough cover. Low cost life insurance may not give you the same frills and benefits as life insurance that costs a great deal, but you may not need these anyway. And there is no sense in paying extra for things that are not necessary.
The two main types of life insurance are term life insurance and whole life insurance. Term insurance offers a death benefit but no cash value, while whole life offers both a death benefit and cash value, but it is the most expensive. However, if you have young dependants and a mortgage, whole life insurance is probably the best option.
The best way to choose a life insurance plan is through a broker or insurance agent who is not affiliated with any insurance company, or paid a fee by them to push a particular plan. If you buy through an agent, quite a bit of what you pay is agent’s fees, though this may not be shown as such but calculated in the final payment.
Rather, use a fee-only insurance advisor and pay them to find a plan that is suitable to you. This means you pay them a set fee and there are no extras added onto the cost of your life insurance. And because they are not affiliated with an insurance company they will be more objective in their choice.