Protection Insurance – Tips and Myths from Expert Financial Advisers

Protection Insurance - tips and myths

The insurance policy is a contract between an individual (or company) and an insurance company for protection against a particular risk. The insured undertakes to pay one or more regular premiums and in return, when the risk occurs, the insurer undertakes to assume reimburse charges as agreed in the contract.





  • Analyze why you need an income insurance policy. If you have a spouse and other dependents income coverage is necessary as it allows to minimize financial losses after your death.
  • Assess your financial needs. Calculate the total financial value of your life and the loss that may be payable in the case of premature death. The key question is: how much financial compensation would be sufficient for dependents in the event of your death?
  • Go online and search for companies that offer income insurance plans. List companies that can provide the coverage you are looking for. If you do not have Internet access, find company phone numbers and financial advisers in your phone book.
Protection Insurance - Choosing Tips From Our Expert Financial Advisers

Tips By Expert Financial Advisers

  • Contact insurance agents and gather information on different policies. One of the best plans is a lifetime policy. It offers you a broad coverage with a fixed premium and an option to get dividends. Remember, the names  of these policies may vary from one business to another. However, coverage and conditions offered by different companies are similar.
  • Evaluate other policies. In a variable income coverage, you can accumulate money that is non-taxable. By taking a universal life insurance policy, you can borrow money over the lifetime and to refine your premiums. Through a universal variable plan, you can buy stocks or mutual funds. In this you have the flexibility in paying premiums.
  • Calculate the amount to buy the insurance. You can do this by an easier method. Make a total of your annual income. Multiply that amount by at least six times. This can be a face value of your policy. Alternatively, estimate the total amount that you will earn in the next five to six years, as everyone in the family would be more matured by this time. This can be the face value. You can also rate your affordability premium and select nominal value of the insurance policy.
  • Get multiple quotes. All companies have different coverage clauses and premiums. Talk to agents about the type of coverage you want and ask for advice. Consider the best option in terms of premiums and duration.
  • Make sure that you do not miss any important type of coverage. Get all doubts clarified before finalizing the policy.
  • Compare insurance company ratings. Choose a company with higher rating. Consider them for better services and quick claims processing.
  • Ask your agent to quickly inform you of any new coverage that the company offers in the future.
  • Consider insurance as an investment for your family. Choose the best option that can help your family overcome the great loss in the event of your death, at least financially.

Although there are many myths like all insurance cheat you, its not true. If you can carefully analyze the policy and read the terms and conditions, you are good to go.

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