Life insurance policies provide a financial safety net that can support you in case something bad happens to you. Despite this, extra precaution should be taken in purchasing life insurance, as some agent don’t have your best interest at heart, and can offer you something you don’t really need. Below are some examples of life insurance policies you should avoid:
Image: flickr.com/photos/fuzzylittlemanpeach
1. Guaranteed Issue Insurance
- This insurance policy is offered to customers who are not insurable or whose insurance is estimated to cost high due to their age or health factors. The guaranteed issue life insurance will usually offer advantages such as not requiring you to have a medical exam and guaranteed approval for life insurance regardless of your health conditions. The disadvantage with such a plan is that the death benefits you get will just be equivalent to the amount of the insurance policy you paid if you die within two or three years. If you do make it past the period indicated, you will only get very low death benefits that won’t really be much of a help at all. Instead of purchasing this type of insurance, try looking for a term insurance that is suited for older customers, if you are worried about high premiums for older customers.
Image: flickr.com/photos/fuzzylittlemanpeach
1. Guaranteed Issue Insurance
- This insurance policy is offered to customers who are not insurable or whose insurance is estimated to cost high due to their age or health factors. The guaranteed issue life insurance will usually offer advantages such as not requiring you to have a medical exam and guaranteed approval for life insurance regardless of your health conditions. The disadvantage with such a plan is that the death benefits you get will just be equivalent to the amount of the insurance policy you paid if you die within two or three years. If you do make it past the period indicated, you will only get very low death benefits that won’t really be much of a help at all. Instead of purchasing this type of insurance, try looking for a term insurance that is suited for older customers, if you are worried about high premiums for older customers.
