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hoosing life insurance can be a daunting task as it requires you to weigh many different benefits and conditions. However, if you know the essential features, you can easily choose the right one. So let’s find out the key elements of a top life insurance policy!
Length of Coverage
Depending on the length of coverage, there are two main types of life insurance policies – term and permanent. Term policies provide coverage for a fixed period of time, usually of 5, 10, or 25 years. Permanent policies, on the other hand, provide a death benefit for the whole term of life. Depending on your age, financial situation and health, you should choose the one most suitable for you.
Cost of Insurance
The cost of life insurance depends on the type of insurance, the policy term and the provider. While the cheapest policy isn’t always the best policy, a great policy should offer the highest coverage with the lowest possible price. However, affordability is relative and depends on your personal financial situation.
Payout Time
Generally, people will only claim a life insurance policy in a calamity. While some insurance policies have as much as 3 years of waiting time, the top policies provide 100% of the payout immediately after a claim is made.
Conversion Features
This is particularly important if you are considering a term policy with the intention of making it permanent in the future. Usually this feature enables you to upgrade or change coverage with minimal to no fees at any given point within the term of your current policy.
Other Benefits
Some life insurance policies also include living benefits like protection from chronic illness, payment of care facilities, etc.
