13.
Explanation
When purchasing a life insurance policy, consider these factors:
1. Coverage Amount : Determine how much coverage you need to provide financial security for your beneficiaries.
2. Type of Policy : Decide between term life (temporary coverage) and whole life (permanent coverage) based on your needs.
3. Premium Costs: Understand the cost of premiums and ensure they fit your budget.
4. Beneficiaries: Choose your beneficiaries carefully, as they will receive the death benefit.
5. Riders: Consider optional riders (additional benefits) like critical illness or disability coverage.
6. Underwriting : Be prepared for a medical examination and underwriting process that can affect your premium.
7 Company Reputation : Research the insurer’s financial strength and customer reviews to ensure reliability.
8.Policy Term : Select an appropriate policy term that aligns with your financial goals.
9. Exclusions : Understand policy exclusions and limitations.
10. Cash Value: If it’s a permanent policy, examine the cash value and investment options.
11. Conversion Options: For term policies, check if there’s an option to convert to permanent coverage.
12. Review Periodically: Regularly review your policy to ensure it meets your evolving needs.
13. Tax Implications: Understand the tax consequences of the policy.
14. Financial Advisor: Consider consulting a financial advisor for personalized guidance.
Remember that life insurance is a significant financial decision, and it’s essential to choose a policy that aligns with your long-term financial goals and provides adequate protection for your loved ones.