5 things on choosing life insurance products

Here are a few things to think about when choosing life insurance.

10:45 27 May 2013

The Church of Scotland’s General Assembly ruled that if Scotland does become independent there will be a separate crowning of monarchs. It seems to have taken relatively little time to come to such a decision, and it would be nice if other things flowed so smoothly in life.

 

Unfortunately other decisions, even things like obtaining life insurance, might take longer to be sorted out than this did. Life insurance takes quite a few things into consideration, and companies often have different policies. Here are a few things to know when searching for life insurance.

 

• Expiration date—some types of life insurance basically expire once you reach a certain age. You may be entitled to receive a lump sum payout depending on the company, but if you live longer than the allotted age you’ll suddenly be without life insurance and may have difficulty finding some for the remainder of your life.

 

• Health—some companies may require you to receive a health evaluation prior to being allowed to continue with the process. Certain health predicaments may prevent you from being able to take advantage of insurance.

 

• Genetics—this is not exactly the same as your own health, but can be counted as a factor towards your ability to obtain life insurance. Information about your family’s medical history plays a significant role in deciding your estimated lifespan, and consequently the premium amount that you should pay.

 

• Annuities—special annuities do exist even if you have medical conditions that mean your lifespan will be shortened. You usually have to pay a lump sum for an annuity instead of the typical monthly payments on a life insurance product.

 

• Changes—some life insurance type of products may not allow you to make changes after you make your initial choice so be sure to investigate as many options as possible and make sure you feel comfortable with your understanding of the options before making a selection.