There are a lot of options when it comes to buying a life insurance policy. However, there are certain important parameters you need to consider in order to buy the right insurance policy for your particular needs.
As far as the amount of insurance cover is concerned, it is recommended to take an insurance cover that covers your mortgage, debts, total income as well as financial future of your dependents. Another important thing you need to keep in mind is that many employers already offer some kind of life insurance policy as part of the benefits package. In most cases, experts recommend a policy that provides cover for 5 to 10 times of your annual income. To calculate the length of time for which the insurance cover should be bought, you will need to take into account the remaining period of mortgage, education needs of the kids and other such things.
Some of the insurance policies available today are linked to inflation. It is recommended to buy a policy linked to inflation in case you want to maintain the current lifestyle of your family. However, you may opt for a simple policy in case you want to cover only your mortgage and other such things. There is also the option of buying additional cover known as a waiver of premium at a small extra cost. In simple terms, this particular waiver covers your monthly payments in case you are unable to work and are unable to make the monthly payments.
You can buy insurance policy from a number of different places including independent financial advisers, banks, comparison sites, your mortgage provider as well as credit card companies among others. In case you are not sure about the kind of cover as well as the kind of insurance policy you need, it is recommended to use the services of an insurance broker. These brokers are experts and can help you by the right insurance product for your needs.