bs-preloader__icon
ru kz en

What prevents people from buying suitable life insurance policies?

Life insurance is necessary if a person has relatives who are counting on financial support. However, for life insurance to be truly effective, LIC clients need to have sufficient coverage. Unfortunately, not everyone knows about this, writes Forbes.
What prevents people from buying suitable life insurance policies?

As a person's life changes, his financial needs change. Therefore, you need to know the reasons that prevent you from buying the right life insurance policy.

1. Life insurance only by the employer

If you have collective life insurance by the employer, you may believe that coverage will be sufficient if problems arise. “Employers usually offer their employees coverage equal to one or two of their annual salaries. This is a nice social bonus, of course, but if a person dies, that amount will not be enough for his family,” says Jessica Landis, the Vice President of Janney Montgomery Scott.

2. A small coverage

A $500,000 life insurance policy may seem like a good deal. Insurance coverage, however, should cover debts in the event of early passing; it should also cover your children's education costs.

“Add up your financial liabilities, then subtract the assets you have (savings, securities). You will get the difference the insurance policy should cover,” recommends Dennis Lavoy, a financial advisor and founder of Telos Financial.

3. Term life insurance

It is important to pay attention to the time period when buying a term life insurance policy. Thus, people often take such policies for the mortgage duration.

4. An expensive policy

Permanent life insurance policies are more expensive than term life insurance policies because they provide whole life insurance. During the coronavirus outbreak, many people’s incomes have dropped, so it is better to contact a financial consultant who will select a product at an affordable price.

Source: https://www.forbes.com/advisor/life-insurance/reasons-not-right-life-insurance/

Photos are from open sources.

Share
read also
Unit linked and Investment Insurance
Unit linked and Investment Insurance

Investors who want to participate in the stock market growth and have a guarantee of ...

Online Insurance Fraud
Online Insurance Fraud

The Association of British Insurers (ABI) conducted research into motorists' and vehi...

Kazakhstan took 67th place out of 163 countries in the social progress ranking
Kazakhstan took 67th place out of 163 countries in the social progress ranking

In the social progress ranking of countries Kazakhstan took 67th place out of 163. Th...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application