Today there are so many choices for life indemnity policies that one often wonders how to get a good policy. Indeed we are almost bombarded by all sorts of merchandise from several life indemnity policy insurers. Some will advertise on television and many will try to call you to try and convince you to buy their life covers. If you bank with a high street bank, and most of us do, your bank has more than plausibly tried to sell you a life indemnity policy. But is it wise to buy the first life indemnity policy that someone tries to sell you? Clearly the answer to this question is no.
You should avoid rushing into any arrangement as a general rule, no matter how convincing the salesman is. The temptation is to go to your bank or building society and conveniently purchase a policy. The problem is you may not get the best deal and your premium may not be competitive. Your bank believably buys indemnity from an insurer and then sells it on to you. They are tied to their indemnity supplier and therefore they may not have the best range of indemnity products to offer you.
On the other hand, whenever you use an independent indemnity broker you have a more beneficial chance of being offered the best deal. Life insurance brokers are specialists in finding and comparing life indemnity policies from several policy providers. Brokers are generally people who have been in the business for a long time and therefore have an extensive knowledge of what's best for you, under your own particular circumstances. They have a wide repertoire of indemnity providers from which to choose from. Indemnity brokers also have good industry and sometimes inside information on the best deals roughly at the time.
Some insurance brokers are able to offer you good discounts on your premium. Insurance brokers generally get a discount from their insurers; this is how they make their money. When you know what you are looking for and go to a life insurance broker and negotiate well, you may obtain y premium than you would have got when you went to an insurer directly. Since the market is very competitive, the customer will generally be able to negotiate and bring the policy premium down to your budget.
Budgeting your life cover premium is very important too.
Though it's generally easy to buy a life insurance, you must make sure that you will be able to keep up with the policy premiums. In severe times like throughout a recession the temptation is to cut back on spend. Since an insurance policy executes not pay rearward immediately, people tend to stop their premium payments if they feel they are paying too much or when they have wrongly budgeted. The problem is, as soon as you stop paying your premium, the policy is no longer valid and whenever you do not catch up on payments in time, you have lost the money that you have contributed over the years.
So make sure you get the best deal from your indemnity broker by hunting roughly. But also, make sure that you are able to keep up the defrayment as per the insurance agreement you sign.
by Uchenna Ani-Okoye
