A whole life insurance plan is one of the best ways you can secure your loved ones’ future. If the unforeseen happens to you, the payout can help your family members put food on the table, keep their home, pay off debts, and stay financially afloat.
What does whole life insurance do?
Whole life insurance covers you against death, terminal illness, critical illness, and total permanent disability. You may also enhance your coverage with the help of riders.
If you are buying whole life insurance for the first time, it is important to bear in mind that this is an important financial decision. To ensure that you are headed in the right direction, we have listed down 5 important questions that you need to ask yourself before buying a whole life insurance plan.
Question 1– How much coverage do I need?
When buying any form of life insurance, you need to make the important decision of the amount you want to be covered for. Consider how much it costs to run your home and how much debt you have currently to arrive at an appropriate figure. Remember to also factor in other expenses and financial commitments such as your spouse’s financial needs, your child’s education fees, your dependent parent’s medical expenses, and so on.
Question 2– Will I be making any major lifestyle changes or decisions over the next few years?
If yes, these decisions and changes will impact the amount of coverage you need. For instance, if you plan to expand your family or take a home loan, you may need to accommodate your added financial responsibilities in your whole life insurance coverage amount.
Question 3–What added benefits do I want on my whole life insurance plan?
You can enhance the coverage of your whole life insurance plan by opting in for riders. You can choose to enjoy benefits such as multiplied coverage, coverage for your child against juvenile medical conditions like autism and ADHD, and coverage against intermediate and early-stage medical conditions for more wholesome protection.
Question 4– Do I need advice from a financial consultant?
If you are buying life insurance for the first time, you might benefit from some professional guidance. Remember that there is no ‘one-size-fits-all’ system when choosing a life insurance plan. The coverage that works for your friend or colleague might not suffice for you. A financial consultant can help you choose the right whole life insurance plan, recommend insurers, and even suggest the right riders for you.
Question 5– Will I be able to afford the premiums charged over the years?
This is, perhaps, the most important question you need to ask yourself when you buy whole life insurance. Sure, the premiums might seem affordable enough now, but what about 5 years down the line when your expenses increase? You need to talk to your insurance provider or financial consultant to calculate the affordability of your whole life insurance plan throughout the premium payment period. This way, you will prevent yourself from having to suddenly stop coverage simply because it becomes unaffordable.
We hope that the information here will prove helpful when you buy coverage. All the best!