Categorized | Life Insurance

Price vs. Quality in Life Insurance

When it comes to life insurance, we are always on the lookout for best quality and lowest costs. Getting a suitable life insurance Policy for ourselves and our families can be tricky. In this battle between price and quality, let us help you decide how to choose the best life insurance policy. Not every expensive life insurance guarantees quality benefits for your needs. And conversely, even the most affordable life insurance policies may offer top-notch quality. Most importantly, it is the life insurance claims which need to be adequate and appropriate for you.

There are various types of covers under life insurance policies offered by different insurance policies. It is important to understand the individual needs of your family members to choose an ideal life insurance instead of just going for the cheapest deal available.

Term vs. Whole Life Insurance
The main difference between Term and whole life insurance is the time period of cover. While whole life insurance will cover you for your entire lifetime, term life insurance offers cover for a specified period. Both offer death cover which is paid in case of death of the insured. In comparison with whole life insurance, Term Insurance has less likelihood of paying up a death Claim as it is only offered for a limited time. On the other hand, in whole life insurance, the death claim will be made eventually. Because of this, whole life insurance is much more expensive in terms of premium.

Do you Need Critical Illness Cover?
This increases your premiums dramatically. But it may be essential to get this, especially if you or your loved one requires regular treatments and Hospitalization due to any life threatening illnesses. You can make life insurance claims for the specific critical illnesses covered under your life insurance policy. There are certain mandatory illnesses which have to be included under critical illness cover in any life insurance policy. But if your illness does not fall under this, then you will need to get a more comprehensive plan which is bound to be more expensive. In this case, it is critical to look at the benefits of your life insurance policy over the cost.

Pr-existing Conditions
Pr-existing conditions are not covered under every life insurance policy. If you need to make life insurance claims on existing conditions, make sure you get a life insurance policy which covers your particular condition. You will need to pay a higher premium. But compared to medical costs you may have to incur regularly for the same, getting such life insurance policy will surely be more cost-effective. This does not mean that you cannot find a cheap life insurance policy covering your pr-existing condition. Make sure you research well and compare quotes from different companies before deciding on a life insurance policy.

What Increases The Cost of Your Life Insurance?
Life insurance prices depend on such factors as your age, occupation, existing conditions and payouts required. Smoking and drinking will increase premiums as such habits do put you at higher Risk for health issues. Thus, it would be wise to get a cost effective Health Insurance policy that specifically covers you for health risks related to smoking and drinking. As you grow older, your premiums will get higher too. Again, this is due to higher health risks at an older age.

To summarize, your life insurance policy gets more expensive when the Insurer feels you are more likely to make a life insurance claim. Paying such high amounts for Premium would be justifiable only if you are covered for the high risks you are likely to face from your daily life.

If you are looking to buy a life insurance policy, make sure it offers optimum Coverage for you and your family. At the end of the day, it is not the cheapest life insurance which is the best. A life insurance policy must offer benefits suited for you and your family, either in terms of extensive coverage through Riders or sufficient sum assured.