Find My Insurance-Life
Insurance Tips: How to Choose a Better
Life Policy |
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Looking for
a life insurance policy that suits your
needs is more difficult than buying a
household gadget, such as a refrigerator
or a washing machine. At least, when you
buy household gadgets, you know that each
gadget has a particular set of features
and a particular configuration. If you
are knowledgeable enough, you can even
evaluate the configuration to see if it
suits your needs. | |
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However, purchasing
a life insurance policy is not so simple.
After all, a life policy is not a tangible
object. Before you go looking for the
right life insurance policy, you should
keep the following in mind: |
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You
should understand the basic facts
about life insurance. All life policies
deal with three factors-return on
investment, mortality experience,
and expense management. The price
of a life insurance policy reflects
assumptions made about these three
factors. No actuary knows for certain
what will happen in 30 years, which
of his clients will still be alive,
and how society will function. Since
life insurance relates to the future,
it contains conservative guarantees
related to return on investments,
mortality, and expenses. However,
if an insurance company performs
well, it can increase the return
on investments, lower expenses,
and also lower experience of mortality,
and pass on the benefits to its
customers. Selecting the right life
insurance company also implies that
you understand the difference between
premiums, cash values, and benefits
that are guaranteed as opposed to
premiums, cash values, and benefits
that are anticipated. Once you know
the difference between guaranteed
and anticipated results, you can
select the right life insurance
policy. |
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You
should find out about the insurance
company's past performance and dividends
before you buy a policy from them.
After all, there's no point getting
a life insurance policy from a company
that may not be solvent enough to
make a payment when you die. Ask
your agent for a dividend history
of the company, or check the company's
rating with A. M. Best, Standard
and Poor, and Moody. Select a company
that has an A+ at A. M. Best, an
AAA at Standard and Poor, or an
Aaa with Moody. |
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When
you purchase a life insurance policy,
buy from an agent who is professionally
qualified and does not hesitate
to answer questions on guaranteed
and anticipated returns, as well
as the company's dividend history |
These
are some of the basic rules to follow
when purchasing life insurance |
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