With the higher lifestyle and economic level that has been achieved, public awareness of the importance of insurance in protecting family finances is increasing. Along with increasing public awareness of this, and the number of life insurance companies today, various considerations in choosing insurance are also increasing.
But some of you may also have difficulty on how to choose the right life insurance. Here are various considerations you can make before choosing life insurance for you and your family
- Customize to Your Needs
Just like buying goods in general, knowing and making sure what kind of product you are going to buy is the main thing that you must know first. Some insurance companies will usually offer you more than one product, so choose a product that fits your needs, abilities, and financial goals. What risks will be covered. For example, the cost of children's education, old age insurance or critical illness that may occur. Learn and compare one insurance product with another, and adjust it to your needs.
2. Budget
The other most important thing is to adjust your budget so as not to interfere with the budget for other needs. Choose pure health insurance with relatively lower premiums than insurance plus investment, if you need complete health insurance benefits but have a limited budget. Make a monthly budget to pay for your life insurance. In financial planning theory, the ideal way is to allocate income or income between 10%-20% for insurance.
3. The Credibility of the Insurance Company You Choose
Insurance is a long term agreement. Therefore, the credibility of the insurance company you choose is also very important. Choose an insurance company that is not problematic in terms of financial management. Monitoring progress and performance or managing it is one way that can be done. Make sure whether the insurance company you choose is not problematic. You can see the financial statements through newspapers, or other mass media. See ratings and ratings. Pay attention to the RBC (Risk Based Capital) of the company, whether it is in accordance with government regulations, which is at least 120%. Get to know the ins and outs of the company you will choose.
4. Service
Choose an insurance company that offers extra service. Like having 24 hour customer service. This will certainly help you later, if you need information about life insurance product details whenever you need. Also know how the claim mutuelle procedure is used. Starting from the requirements to how long your claim will be paid later. Does the company cooperate with the hospital, making it easier for customers to submit claims, without paying first. because if not, it will bother you later.
5. Do it while you are healthy
Each insurance company has different criteria in terms of the health conditions of their prospective insurance buyers. Some even refuse insurance applications given by prospective clients if they feel they do not meet their requirements. Therefore it is better if you buy insurance while you are healthy, this of course affects the premiums paid. If you are in good health, the premium paid will be minimal compared to if you bought it when you were sick. Do it as early as possible, while you are healthy.
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