Basics of Insurance Planning
An inevitable part of modern life is that one needs to sit down, think through and plan insurances purchases. This is by no means an easy task and may require the assistance of a certified financial planner. But nevertheless, one of the beliefs behind this website is that of equipping readers with the necessary knowledge, mindset and decisions making guidelines for wise decisions regarding the planning of each individual’s financial affairs.
An individual’s present life stage and needs will determine whether the policies are providing benefits or unnecessary costs.
For example, if you are single and have no dependents, why would you want to purchase a life insurance that payouts $1 million to some ghosts? This is an obvious example of what I mean by unnecessary costs.
First and foremost, do you treat an insurance policy mainly as a form of savings because you felt that you need this type of forced savings due to lack of will or as a protection against any unforeseen situations that are likely to happening like unluckily getting cancer.
When you need each type of insurance will be discussed separately in a series of articles to follow, do subscribe to my RSS feeds for updates.
After deciding on what types of insurance that you really need, the scope of coverage is another important issue.
Do you realize that some polices only cover critical illness and not total disability?
Do you realize that some polices only cover up till a certain age and not until you lie in a coffin?
After the first two components of any insurance, then is amount of coverage.
For this case, you really need to shop around yourself for all the reputable companies selling insurances with roughly the same type and scope of coverage.
Why not ask your financial adviser from Prudential?
Simply because he or she is not going to tell you that there is a better option from Great Eastern for the type and scope of coverage that you need.
He or she is only going to tell you what insurance policies that suit your needs in terms of types and coverage that Prudential have.
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Hey, great post, very well written. You should blog more about this.