If you are newly-wed, then planning for honeymoon is what keeps you engaged most of the time. You hardly have time to think about insurance. You are young and so believe that an insurance plan is not the need of the hour. It is not that you do not understand its importance but do not feel going for it at this moment.
Truth must be told in no uncertain term – the future is always unpredictable. You do not know what is awaiting you at the next turn and so need to be prepared now and always. An insurance plan is what gives you an assurance of security in case anything unfortunate happens to your spouse.
The newly married couples make little insurance plans because they expect to live longer. But they are wrong. Any time life may be cut short by disease or accident. Have you ever thought about what will happen to your spouse when you will be no more? Or what will happen to your property if both of you die? In the first case, the survivor’s life will only get miserable. But in the later case, the state will take over your estate just because you do not have any legal will in place. You have expressed your wish as to what you want to do with your property. But the state will set your wish at naught because there is no written dossier.
So, after coming back from the honeymoon trip, make sure to consult with your life partner regarding the insurance deal. Security is an important issue when you are going to turn a new leaf of your life. Convince him/her why you need to buy an insurance policy without delay. Argue with your spouse and give enough reasons why an insurance plan is no short of a necessity. Once you get the green signal, start shopping to get the best deal.
At first, you must decide which kind of insurance plan you need to go for. Do you like to opt for a term life insurance policy? It is a good choice because you will have kids after a few years. Term life insurance is done for a long stretch of time, say 20-30 years. So, an entire family will remain insured for a long time span. By the time policy term will come to an end, your children will have graduated from college. So, you will be at least relieved that your children will be protected if anything worse happens to you or your spouse or both during the policy term.
Now once you have decided which type to go for, it is high time to search for a good deal. There are some companies which provide the best deals but then these choices come expensive on our wallet.
It is important to choose your life insurance because it cannot be transferred from one institution to another. Find the factors to take into account to take out the right life insurance policy.
Choosing the Right Insurer and Right Distributor for your Contract
Several types of actors distribute life insurance contracts: traditional players, online banks, pure internet players. Before subscribing to life insurance, first, consider the distributors and then the financial strength of the insurers. It is with them that you create the contract and they own the funds.
Recall that the State is guarantor, up to 70 000 by an insurer, and by contract. Therefore, do not hesitate to take out several life insurance policies in several banking institutions by checking that it is a different insurer. Indeed, the same insurer can be distributed by several distributors via different contracts.
You can subscribe to as many life insurance contracts as you want. There is no limitation as is the case for regulated investments such as the PEA, the PEL for example.
Pay Attention to the Management and the Performance of the Fund
While much emphasis is placed on comparing the yields of funds and fees between different contracts, private investors are often less attentive when it comes to comparing investment vehicles, and in particular units of account ( UC) offered by different insurers in their contracts. Expense differentials are of course a crucial element in deciding, as is the return of the euro fund, but also be very vigilant about the composition of the fund in dollars.
The latter is the secure envelope of life insurance. Pay attention to the management: the insurer draws in its reserves to guarantee your capital invested in funds? And what is the euro fund composed of? But it is also up to the fund manager to offer you real diversification within the euro fund with shares, real estate assets, etc.
Following these recent provisions, insurers now offer life insurance policies that focus on units of account in order to cope with low rates. Thus, many institutions have put in place the obligation to put a portion of payments on account units (e.g. pay at least 30%).
Favor the Diversity of the Units of Account
The number and diversity of units of account are therefore essential criteria for choosing a life insurance policy. Indeed, there are single-support contracts in dollars and contracts in an open architecture that allow access to many funds. Privilege contracts that offer more than a hundred units of account and that showcase the diversity of investment vehicles. The choice of a life insurance policy favoring many units of account is all the more important as the economic and political context makes the euro funds less attractive.