Shopping for a life insurance policy in Bahrain
that best fits your needs is not an easy task. But if you settle for the first offer that comes your way, chances are you might end up wasting your hard-earned money. To find a life insurance plan that offers maximum protection at lower premiums, you will either need to shop around and compare offers, or simply consult an independent insurance broker.
Although it is advisable to take out a life insurance policy early in life, rushing into such a purchase is definitely not a good idea. You might come across some reasonable offers in your search but it is important to weigh the pros and cons before signing the dotted line.
Here are a few pointers to keep in mind when looking for a life insurance policy:
Understand your insurance needs
Finding the right insurance policy starts by understanding why you need insurance and for how long you need to be insured. Always remember that insurance is for protection, and not for investing! You might want to factor in your debt, your family’s financial requirements, income replacement, funeral costs, and inflation rates before you determine what type of insurance cover you need.
SEE ALSO: Get Your Finances in Shape Soon!
Term assurance vs. whole of life (permanent) policy
A term policy covers you for a fixed period of time, whereas a whole life or permanent policy covers you until death. The premiums for term policies are considerably lower than for permanent policies, especially if you are young and healthy. Unless your family will be financially dependent on you for a long period of time – 25 years or more – you may want to go for the term policy. Here is the difference between term assurance
and a whole of life policy
Your search for the best life insurance deal should start as soon as possible, especially if you have dependents. Hardly anyone buys life insurance in their 20s, but if you delay this purchase beyond your 30s then you might end up paying considerably higher premiums. People in their 30s pay much lower premiums than those in their 40s. Smoking and involvement in risky activities make life insurance even more costly.
Don’t get caught in details
Provide the insurers with an accurate picture of your health. Don’t shy away from medical tests, and buy only if you can comply with the policy details. This will make sure your beneficiaries can get the best out of your life insurance coverage in your absence. Information withheld from insurers can result in your family not receiving a payout in the event of your death.
In addition, research the insurance provider’s customer service history and record of claims. Insurance is a long-term commitment; don’t let the fine print get you.
If you want to skip the hard work of scanning the market and comparing the options available, it will best suit you to seek advice from a qualified financial adviser
who can get you the best deal both in terms of appropriate cover and cost-effectiveness.