November 18, 2015
Many doubts are those that appear when choosing the most convenient life insurance. Here are seven key points that will help you decide based on your income and needs, among other factors.
In order to provide a guaranteed support to our relatives, our spouse, children, the elderly or disabled people; We all resort to life insurance, which has various alternatives ranging from temporary policies, which cover the death of the head of the household, to more sophisticated options such as educational life insurance to cover the studies of the child or young person in case of death of your agent.
There are many doubts that appear when choosing life insurance, such as knowing what type of insurance will best protect the family, what amounts should be taken into account or what type of coverage insurers offer. That is why BMI Companies offers us some key tips before purchasing life insurance:
- Get in touch with an insurance advisor, as they can provide clear information on available solutions.
- Decide the amount of coverage you need depending on your income, family structure, lifestyle, and other important factors. The primary purpose of life insurance is to maintain the income stream that would be lacking upon the death of the family's income provider. An easy method would be to calculate annual expenses plus inflation for the year and multiply by 20. More complex methods would require evaluating and adding current and future costs, such as mortgages, debt, and college costs, among others.
- Evaluate your current insurance policy and don't cancel it until you've received a new one. Consider that policies can be modified to accommodate new required benefits.
- It is very important to understand the premium or annuity amounts of the policy and make sure you meet the payments of the policy. This amount to be paid periodically should be manageable within your family budget.
- Regarding coverage, the choice of policy will depend on different reasons; in case of temporary protection, it is preferable to choose a term policy. If you are a recent father of a family, it is advisable to take a life policy with savings, since due to the age factor it would come out at a good cost due to less risk possibilities.
- Read the policy carefully. It is necessary to know what type of benefits the insurer offers and if these can change. Some benefits may expire in time or may simply require decision-making on your part to remain or increase if needed.
- Review your policy from time to time accompanied by your agent in case you need more coverage.
"In the case of a young client, it is advisable that they decide to take a life policy with a savings component that, due to their age, would come out at a reasonable cost", declares Anthony Sierra, CEO of BMI. In addition, he affirms that in these cases the premiums are frozen and it is preferable that the client has a policy that covers him for death and at the same time pays him a higher interest than that found in a bank. "The objective of having life insurance is that the family does not remain helpless or have to leave the lifestyle they lead", adds.
“Another key point before deciding on life insurance is to take into account the history and support of the insurance company; in this regard, BMI has more than four decades in the insurance industry and is consolidated as a benchmark of trust for the client ”, says Hubert Weichselbaumer, Vice President of Sales and Marketing at BMI.
In general, there are many more options and alternatives, the important thing is to get sufficient advice from a professional who can analyze your specific case and help you design tailor-made solutions.
