Avoid Making These Mistakes in Taking Life Insurance
Taking Life Insurance
Slow but sure, awareness of the life insurance benefits increases in public. The problem is the lack of knowledge about the variety of insurance products. The lack of information and knowledge products as and the lack of explanation from marketers often results in customers when buying insurance. A common mistake that often happens is that most life insurance customers do not understand what possessed.
Besides not understand what products purchased, the most common mistakes made by the customer is buying insurance under the insurance money. The term is underinsured. For example is buying expensive insurance premiums with insurance money perfunctory. In fact, there are still many needs to be met. Therefore, it is important to calculate the amount of insurance needs and then purchase the appropriate insurance.
Buying insurance for children
It commonly arises when parents talk about their children. Buying insurance with children as the insured is not wise. The purpose of buying insurance is to protect the income so if the head of the family dies and cannot provide more income, the family left behind is ensured. Who should have insurance are parents so if there is risk to the parents, the children’s lives are assured. Parents have economic value, not the child. If the family loses a child, the family does not lose financially, but emotionally. Indeed, this insurance to protect the income of parents so the child is not abandoned. For children under 18 years of age whose parents died at the same time, he inherited from his parents. To take care of the parents’ legacy, the religious court will appoint a guardian for her. For Muslims, the guardian is appointed by the local religious courts. For other religions, the guardian is appointed by local courts. If the child wants or needs to sell the property for money, the trustee can ask the determination of the court. Guardian may be a close relative. That is, if the guardian actually provides the money for the benefit of the child. The conclusion of the illustration above is that parents who buy insurance must immediately appoint a guardian. Appointing a guardian is to care for your children if you or your spouse dies. Appoint the really honest and responsible guardians.
Insurance for housewives
Some housewives do not need to buy insurance. A housewife does not generate income for their families. However, keep in mind that housewives could potentially reduce family expenses. A housewife can act as a driver of instruction children to school, become a tutor, swim teachers, cooks, nannies, nurses, gardeners, housekeepers and others. Imagine if the mother is not there. How large the expenditure to be borne if you have to pay the driver, tutor, nanny, gardener, or house cleaning. Cost must be taken into account when buying life insurance for the mother.
Life insurance is closely linked to efforts to protect earnings. An unmarried man who does not pay for a parent, brother, or nephew, and dependents economically, it is not necessary to buy life insurance. If he dies, no one is neglected because he supports financial by himself. When he dies, it only costs funeral and money to pay the debt. However, an unmarried man needs insurance such as disability insurance protection or critical illness. If at any time he suffers a critical illness or permanent disability that cannot meet their needs, the sum insured of insurance can be the cost of living. Surveys show that the likelihood of someone disabled seven times more than the dead.
Not telling the family
In some cultures, talking about death is taboo and insurance relates to the death. Some people choose to hide their insurance policy and do not tell the family if he has insurance policies. It is only done when the risk of accidental death occurs and the agent is no longer associated with the client or move to other businesses. Therefore, the family or policyholder does not receive insurance benefits. In some insurance companies, life insurance claim deadline is one year after the insured dies. If the claim is more than that, there must be compelling reasons of beneficiaries.
Claims will analyze whether the claim can be approved or not. Another possible mistake made is to save the insurance policy in the safety box at the bank. If the policyholder dies, it will be difficult to open the safety box. Putt the insurance policy in the easy place to find, for example, in one folder. In case of fire or natural disaster, these folders can be directly saved.