4 Big Mistake The Customer When Buying Life Insurance
Having life insurance can help you anticipate financial risks that could arise due to the death of the breadwinner and in other disaster-disaster because that keeps the taps family income is interrupted.
However, for buying life insurance also needs its own incredible detail in order not to get caught up the purchase of products that are not appropriately. Often happens that someone buys life insurance, turned out to be not as needed so that when thawed, financial risks inevitable still occurs and rocked the financial health of the family.
If you are planning to buy life insurance, consider the four great errors the following research results so that you don't buy the wrong:
1. Not knowing the needs of the sum assured
Many people simply buying life insurance without first calculating how much money needs an actual coverage he needs.
As a result, when the risk occurs, the sum assured that liquid turns out to be insufficient to cover the financial needs of the family. Know in advance how much life insurance coverage needs money so that You can find the right product.
How to find out the needs of money life insurance coverage you can count with the approach of the Human Life Value, with the multiplication formula between current income plus the value of the risk free rate.
2. Consider insurance as an investment
Subject of the insurance, the one thing that you need to always remember is that insurance is cost. Insurance is not an investment where you could expect a yield big someday.
Otherwise, insurance is a cost because insurance scheme is in principle a risk of diversion of a person on a third party i.e. insurance company.
Insurance companies will pay an amount of compensation or sum assured when there are risks on the insured or policyholder.
Policyholder is obliged to pay premiums as a cost over the transfer of risk to the insurance company.
3. Incorrect setting of the insured in the policy
In insurance, the insured is the one who risks his life was borne by the insurance company. So, when the insured dies, then the insurance company will pay the insured a sum of money which is rightfully given to the designated beneficiary.
Who should ideally be insured within the life insurance product? In accordance with the purchase of financial risk management, namely family life insurance, the insured must be those who have the economic value or parties became the source of family income.
4. The origin of buying insurance advocates
Usually when you buy life insurance, insurance agents will also offer complementary insurance or a rider. Do not add additional insurance of origin prior to first calculate what your needs are.
Additional insurance also means additional costs, if any additional need for life insurance, you can weigh to add it with a waiver of premium or premium exemption.