Buying life insurance is to protect the financial security of your family. But when it comes to buying insurance, I believe that many people will start to have a headache. After all, there are too many life insurance policies on the market, but there are so many details to pay attention to when buying insurance. How to choose will not let you Lose your own rights and protection? This article sorts out 12 devil details of life insurance policies that everyone often overlooks, teaches you to figure out what to do before buying insurance, so as not to mess yourself up, and let you not be stunned by the rhetoric of insurance brokers. For a moment.
Reminder:
●This article only provides basic general knowledge of life insurance. The detailed insurance clauses are subject to the actual insurance policy and contract clauses. For details, please contact professional insurance brokers for in-depth understanding.
●Life insurance is not absolutely good or bad, only suitable and inappropriate. It is recommended that partners and professional insurance brokers have an in-depth understanding and find the most suitable choice according to their own conditions.
Free online life insurance comparison tool
Most life insurance companies in the United States provide free online Quotes, fill in basic information, physical health status (such as whether or not you smoke, whether you have exercise habits) and the expected insured amount, you can draw up individual insurance policies and provide individual rate quotes based on your personal situation , The minimum monthly premium starts at $14. However, due to the different background conditions of the policyholders of each insurance company, the rules for setting the rates are different. The actual cost is related to the health status and awareness of the policyholders. Therefore, the specific amount should be quoted in person for the most accurate price.
- Choose the state of residence: Every state has different life insurance companies with good evaluations. Choose the state of residence to make the most suitable recommendation.
- Do you have exercise habits: Use whether you exercise more than three times a week for preliminary health assessment. Insurers with exercise habits usually get a discount.
- Fill in the address Zip Code: Even in the same state, the best housing insurance company in each city will be different. After entering the Zip Code, a list of the most suitable insurance companies will appear. The homeowner will choose according to the characteristics of each insurance company and the rating Review Quote.
- Inquiry Quote: After reading each feature, you can go to the company's official website to make an inquiry. Online inquiries usually give discounts together.
★The key to buying life insurance★
Devil detail No 1│Don’t buy an insurance policy because of favor
Relatives, classmates, and friends are doing insurance... Many people buy insurance policies because of "favors", instead of carefully understanding the contents of the insurance policies, and signing their signatures entirely because of "loyalty". My dear, buying insurance really has nothing to do with loyalty, and the point is, if you just buy insurance to help your relatives and friends, will it not take long before your relatives and friends wave their sleeves and leave your job, but you are Tie an N-year contract that is not very suitable for you and make a foolish payment. Who can't pay?
Conclusion: Brothers must settle accounts clearly, even if they buy insurance policies with relatives and friends, they must be handled carefully .
Devil detail No 2│Honestly inform health status (Pre-Conditions)
The insured must honestly disclose his physical condition (such as providing health examination records) when applying for insurance. If it is deliberately concealed or false, if it is necessary to make a claim application in the future, the insurance company may think that the insured deliberately deceived in exchange for better With low premiums, insurance companies will have the right to settle claims only proportionally or even refuse to settle claims.
Conclusion: Honesty is the best policy.
Devil detail No 3│Accelerated Benefits
The ante mortem benefit means that if the insured person is terminally ill and the doctor proves that the life span is only one year, the insured person can use the life insurance policy in advance for claims. Now chronic diseases, long-term care, etc. are also included in the antenatal benefit. But there is no free lunch in the world. Insurance companies are non-charitable organizations. Any insurance company's promise comes from your money. If you want to use the benefits during your lifetime, you have to pay a little price, which is the Discounted Value.
Example: Assuming that A’s life insurance policy is worth 1 million, if A wants to use all the benefits during his lifetime, the insurance company will have to discount (about 80% to 95%), so A can only enjoy 800,000, and the remaining 20 Wan is the beneficiary cannot receive it even if A returns to the west.
Conclusion: The insurance broker may tell you how good the life insurance is during your lifetime, but please don’t forget to understand the proportion of sacrifices and other related restrictions.
Devil detail No 4│Chronic Illness VS Long Term Care
This is also part of the benefits during the lifetime, but chronic diseases (Chronic Illness) and long-term care (Long Term Care) are two completely different legal concepts. If long-term care is not defined in the policy, insurance companies can circumvent relevant laws that restrict long-term care. Once defined as long-term care, usually the insurance policy payout should be the full amount of life insurance. Therefore, we must pay attention to whether the insurance company has specified its life benefits as chronic diseases, and beware of legal loopholes.
Conclusion: Please be sure to understand the definition and coverage of relevant terms and terms in the policy, especially those common contextual definitions.
Devil detail No 5│Insurance then Investment (Insurance then Investment)
The income of an insurance broker comes from commissions. The higher your premiums, the more commissions he earns. So beware that some unscrupulous insurance brokers do everything possible to convince you to buy those "lifetime" and "savings" that may not really suit you And "investment" life insurance, because this type of policy with a larger sum insured also takes more commissions.
Conclusion: When planning insurance, life insurance and accident insurance should be the basics, and investment should be considered after basic protection. And please choose an insurance policy according to your own abilities and needs.
Devil detail No 6│Insurance fee structure and hidden fees (Hidden Fee)
For example, in investment-based universal life insurance (Variable Universal life (VUL)) and universal life (UL) policies that combine investment, savings, and insurance, there are actually many hidden costs that will silently swallow the cash value of the policy, such as Upfront costs, administrative costs, investment target conversion fees, etc. Although insurance brokers may offer "monthly payment of XX Dollars, hundreds of investment targets for you to choose! One-year free No. of times times conversion fees for investment targets", which sounds like a very cost-effective profit at first glance, but more are Those expenses he didn't say.
Conclusion: Don't be troubled with money, ask the insurance broker to elaborate on the policy fee structure and related expenses.
Devil detail No 7│Payment Frequency
For some policies/insurers, the frequency of premium payment will also affect the premium. If the premium is paid in multiple installments each year, the total premium paid each year will be higher than the total premium paid annually. So if the funds on hand permit, the annual payment method can also save yourself some money.
Conclusion: Don't forget to ask the insurance broker for payment methods.
Devil detail No 8│Premium discount for healthy lifestyle
Don't forget to ask if insurance brokers can offer premium discounts for "healthy lifestyles". For example, non-smokers should have a 10% to 20% discount on premiums. Those who have quit smoking for more than a certain number of years may also enjoy this discount.
Conclusion: A healthy Life Style not only preserves health but also saves money.
Devil detail No 9│Filing a Claim (Filing a Claim)
For example, disability claims attached to life insurance policies, some policies require the insured to apply within a certain time limit before they can get the claim.
Conclusion: Know the application time limit for all claims application.
Devil detail No 10│Renewal / Convert Conditions
Some insurance companies will provide renewal or conversion clauses, allowing policyholders to extend the renewal without submitting a health report or switch to other types of life insurance before the insurance expires. It is important to note that the renewal premiums of some policies may be higher, so don't forget to ask before signing.
Conclusion: You must read the black and white text clearly.
Devil detail No 11│Benefits-Lock Interval
Life insurance in the United States has a 2-year lock-up period. Within 2 years from the policy date, if the insured person dies due to non-accidental factors (such as suicide), the insurance company will not settle the claim, and will only take the current priority The insurance premium paid by the policyholder is refunded. This is mainly to avoid fraudulent premiums. (There is no such restriction in some cases)
Conclusion: The world is unpredictable, and it is also important to understand the situations in which claims cannot be settled during the 2-year claim lock-in period.
Devil detail No 12│Other things to know before Buying Life Insurance
● Make sure that your insurance broker and company hold a state business license . (You can call the state insurance supervision department to find out)
●If you don't understand or have any questions , you should ask , this is not the time to be shy.
● Review the life insurance underwriting content at least every two years to ensure that the policy content meets current needs.
●When writing a check to pay premiums, you must fill in the name of the insurance company , not the insurance broker.
●You have a "10-day free consideration period" during which you can unconditionally surrender the insurance without any penalty.
If you have any questions about life insurance or the content in the article, please feel free to contact by sending email to this Email Address You can also contact by visiting any Social Media Platforms and don't forget to follow on
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