Growing up, I may have heard once or twice, here and there, people talking of life insurance but back then I would have had no concept of what that actually means.
The first time I learnt about it though was in my twenties. A friend of mine had been advised by her family to get one and so she told me to get one too (positive peer pressure). And that is how I ended up with a life insurance of my own at the age of 23.
Frankly speaking, 23 years is as good as any age to start, although 18 years or 21 years is probably better for long term savings. The thing is though, you have to know insurance really well before you take a policy. This I learnt the hard way because I ended up choosing a policy which would not have been my preferred choice. Your preferred choice is basically one which suits your lifestyle and goals.
In order for you to make the best decision based on your preferred choice, you need to learn all you can about life insurance policies. Question you will need to ask yourself:
- Do you want to be paid an amount at intervals or do you want to be paid the full lump sum in one go? Or do you prefer both options?
- When do you want to cash in your policy? In 10 years? 15 years? 20 years?
- What is the amount you want to insure? SCR250,000? SCR500,000? SCR1,000,000?
- How much are you willing to pay in premium per month? SCR500? SCR1,000? SCR2,000?
- Would you prefer to pay an annual premium instead of a monthly one?
Also, you might want to consider your dependents when you take out an insurance policy, so your decision affects them as much as it does you.
There are also some questions you might have for your agent or the Sacos officer?
- Which plans pay out at regular intervals and which ones pay out a fixed amount in one go?
- Which plans give you a combined cash pay out option?
- What is the maximum and minimum term of all the different policies for your specific age?
- Which policy has the lowest monthly premium for a specific policy term (e.g. the lowest amount you can pay on a 10-year policy plan)?
- What is the maximum age limit for each different policies?
- Which policy is more suited for children?
- Which policy is more suited for the family?
- Which policy is more suited for retirement?
- Which is the most cheapest policy?
- What are the advantages of the more expensive policies?
Did you know that many life insurance plans come with a With-Bonus option? Did you know that you could also take out an advance on your insurance plan? The things you learn when you take the time to read more about insurance!
By the way, my preferred choice would have been the Sacos Exclusive Plan.