3 Things to Look for when choosing the Right Plan

The best life insurance product is the one that meets your needs and goals. With this, certain aspects of the plan must be considered so you can choose the ideal life insurance plan for you.

1. The benefits meet your needs

One of the main goals when purchasing life insurance is to have a backup plan for the future and secure the quality of life that you and your loved ones are enjoying today. A life insurance plan should provide the right benefits at the right time. This means that you must know and understand your needs and priorities and ensure that the features of your plan address these.

Some life insurance plans include hospitalization benefit, critical illness benefit, death benefit, and maturity benefit. Other benefits may be added depending on the type of plan and the customer’s priorities, for example:

• An education insurance plan for children may provide benefits like potential savings growth, cash payouts and contingent benefits so you can prepare early for their college education
• A retirement plan may provide payouts and/or a lump sum benefit for your retirement,
• An investment-linked insurance plan will provide both protection and investment opportunities for money growth and other specific goals

On top of these, you can add riders to have more benefits or provide further protection to you such as a more comprehensive critical illness rider, a personal accident rider, a premium-waiver rider, etc.

It is essential for you to know the type and amount of coverage you need, the benefits you will receive, and what your beneficiaries need, for you to choose the right insurance plan.

2. Premiums fit your budget

A good life insurance product does not necessarily need to be the most expensive product or the one with the most benefits. Rather, it is the one that you can maintain consistently and pay on time. The policy might be difficult to maintain if the premium is too high but on the other hand, it may not serve your goals if the premium is too low.

There are a number of products that can suit any budget with some being as low as PHP 1,000/month. Make sure that your premiums are within your budget, so you can pay on time and maintain your coverage. The ideal premium would be around 10-15% of your income. This should increase as you earn more so it’s good to review your goals on a regular basis.

3. Adequate policy term and payment period

Aside from benefits and premiums, you must also consider the payment period. A life insurance plan helps you reach your goals, especially when you have an adequate policy term and payment period. For example, insurance plans geared towards preparing for your children’s college education should be set up while they’re young, to give it enough time to mature and be useful when they enter college.

The best way to find out what product suits your needs is by understanding your needs, your goals, and your own financial conditions. As you speak to your financial advisor, the more details you share about your priorities, the easier it will be for your financial advisor to design the right plan that fits you.

If you want to choose the right plan, talk to a Financial Advisor today!