Other than our basic needs and necessities we spend the most money on getting security for ourselves and for our family members in the shape of life insurance. For this, knowledge can be very useful and advantageous as the more knowledge you have the better decisions you can make and that too very economically about how to finance yourself and your security insurance policies smartly without paying more than you should.
Insurance companies on the other hand try their best to keep their inner secrets well hidden through which they can profit and the customer could pay more than he should have. To prevent such acting from the insurance companies, here are the some secrets regarding the life insurance you should stay warned about:
Life Insurance Is More Profitable For The Insurance Agent Than For You
Life insurance seems most lucrative to a regular person because it promises that at a certain moment in time your premium payments will stop as your returns will take over and you will be free of the burden but that’s a partial truth. Most of the time the returns are small in comparison to your premiums and thus you have to keep paying the premium. The insurance agent on the other hand gets a solid commission for selling life insurance policy to you and will keep getting benefits for years.
If You Need, Renegotiate Your Premiums
Another basic fact that agents purposely forget to tell you is that you can change the terms of your premium payment after a few years which means if you ever think that your premium charge is too much for you to pay at the moment then instead of giving up on your policy you can change your terms and offer to pay less per year to keep it active. They don’t share this because if your policy lapses due to unpaid premiums, it will actually add up in the insurance company’s profit.
Life Insurance Companies Are Not Dependable To Track Your Beneficiaries
Another thing that agents don’t tell or warn about is that insurance companies will not go out of their way to find beneficiaries of your policy. They don’t stress much on this point as all the uncollected or unclaimed policies are good money for the insurance companies. To prevent this to happen to you, you need to do the following:
- Tell your beneficiaries so they can claim after you pass away
- Keep updating their contact details with the insurance company
- Put it in your will so insurance company could not just eat away the entire coverage of your policy