10 Things You Need To Know.
Life Insurance is one of the key pillars of personal finance which should be considered seriously by every household as part of their overall financial well being and protection. In reality, this is not always the case and despite the flexibility of the various types of Life Insurance there is still confusion-and in some cases even scepticism – surrounding these types of products.
Ian Featherstone of UAE based IAE Insure has arranged Life Insurance for people from all over the world and from all walks of life; from teachers to lawyers, from self -employed individuals to heads of multinational corporations. No matter what stage of their personal life these people are at, or where they are in terms of their professional lives, they all have one key factor in common. As far as Ian is concerned they all share the need for “protection” should something ever happen to them. “Invariably many customers have something that needs looking after, whether that be income, family, assets, or simply to ensure a legacy after years of working should a life-changing event happen.”
“Years of looking after thousands of customers each with their individual circumstances have made me realise that you need to understand the needs and objectives of each case. There is no “one size fits all” and this is why IAE Insure has always been very particular about talking to the customer and has always met its UAE customers face to face to understand just what it is they need and what they expect from a policy. Life Insurance can be looked at online but it isn’t really something you should be buying over the internet with a few clicks of a button.”
As far as IAE Insure is concerned having the correct information is of paramount importance. “Only then can the customer to be fully aware of the decisions they can make and what will work best for them and their particular needs. It’s true that when you meet with a customer for the first time there can be some confusion about Life Insurance in general. However, once you are able to assess the customers’ needs and you can explain the various options and permutations, it’s almost like a light bulb moment and they suddenly start to see the inherent value of Life Insurance and just how important and satisfying it is to have.”
In order to simplify and guide you through some key points and hopefully give you some food for thought, IAE Insure has prepared “10 Things You Should Know about Life Insurance.”
1. If anyone relies on you financially, you need life insurance. If you are a spouse or the parent of dependent children you should have Life Insurance in place. In fact as a general rule if you have anyone who is financially dependent on you really should have Life Insurance.
2. Life Insurance does not simply apply a monetary value to someone’s life. Instead, it helps compensate for the inevitable financial consequences that accompany the loss of life. Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. Most importantly, however, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one. As the policyholder, you’ll also appreciate how taking out life insurance gives you valuable peace knowing your financial affairs and loved ones are protected.
3. Life insurance is a contract and is referred to as a policy. A policy is a contract between a life insurance company and usually an individual (occasionally it can apply to a trust) who has a financial interest in the life and livelihood of someone else.
4. There are four key components or roles in a Life Insurance policy. They are the insurer, the owner, the insured and the beneficiary. The insurer is the insurance company, responsible for paying out claims in the case of a death. The owner of the policy is responsible for payments of the premium to the insurance company. The insured is the person upon whose life the policy is based. The beneficiary is the person, trust or any other entity which will receive the life insurance claim—or death benefit should the insured pass away.
5. Life Insurance should always be considered a risk management tool and not an investment vehicle. Historically life insurance policies have held an investment feature that allowed tax privileges or even a savings plan. Life Insurance should not be considered an investment and IAE Insure likes to keep its policies simple and do what they are intended to do… after all the clue lies in the name of the product and invariably there are better and more efficient ways to save.
6. You might hear the words “term” and “permanent”. Term life is the simplest form of Life Insurance, the least expensive and the most widely applicable. Term Life insurance gives you cover for a fixed term determined by the policyholder and the insurer pays out on death or terminal illness. Simply put if you want £100,000.00 worth of cover over a thirty year period and you were to die in that period your beneficiary would receive £100,000.00. “Permanent” or as it’s also referred to “Whole of life insurance” is a type of policy that guarantees that the insurance provider will pay out a cash lump sum to your family (or beneficiaries) when you die rather than within a fixed time frame.
7. Life insurance is expensive. This is where you really need to speak to a Life Insurance Expert as from our experience our customers in the UAE who purchased Life Insurance were surprised that premiums were nowhere near the levels they had anticipated and when they compared the payments to the Life Cover sums it made good financial sense as well as offering real comfort.
8. Don’t make it complicated! It really doesn’t have to be. By speaking directly with a Life Insurance expert who is in the UAE and has access to the best providers and quality cover you can set up a policy without too many problems. In the vast majority of situations, a household can be cared for simply by buying enough life insurance to recover all or most of the insured’s income for a term as long as the household expects to need that income.
9. Consider using a REAL person to help you through the Life Insurance Maze. There are now so many online tools and comparison websites out there which help give you an idea of how much money you should pay for the policy you need. That’s great and is a big help to people who are tentative or worried about their first Life Insurance policy enquiry. Once you’ve got an idea though you really should speak to someone who knows what Life Insurance is all about and can advise on what’s best for you? They’ll not only advise but can also walk you through the whole application process and explain the underwriting process. There is no difference between the online premiums you are quoted and those given to you by a broker and a professional and experienced Life Insurance expert may help you save money by choosing the best provider for your particular situation…they will only know this if they are able to understand your objectives and your needs.
10. Talk to an expert and know your options! This applies to all aspects of Life Insurance. If you’re cancelling an existing Life Insurance policy because you think you’ve been overpaying, wait until the right policy is in place before you cancel it. You wouldn’t believe how many times we have seen accidents happen to individuals or a sudden illness overcome them whilst waiting for a new policy to replace an old one. Similarly, if you believe your current policy is no longer appropriate and you’re looking for a new one, just make sure you talk to someone who can offer some expert insight! It’s not uncommon that in the process of setting up a new policy you could learn of a health complication that is going to lead to you being declined for a new policy. Both scenarios will ultimately leave you without any Life Cover.
UAE Life Insurance specialist, IAE Insure believes that in over twenty years experience working with Life products and customers that “No one really enjoys talking about Life Insurance as it ultimately involves talking about death, serious injury or trauma. However by discussing events that could happen to anyone you’d be surprised how positive and secure you might feel.” Ian Featherstone of IAE Insure goes on to say “When we’ve met with all walks of life and all professions they ultimately understand that purchasing Life Insurance is an important part of a long-term and comprehensive financial plan. To know they have made a commitment to financially protect their loved ones is actually something you can’t really buy!”
For information on the article please contact:
Sergio Pani – Ulysses Communications & Promotions
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