Tips For Buying Life Insurance For The First Time In Nigeria
At this stage, I want to believe, given all we have done on insurance especially life insurance, that we all understand the importance of life insurance. What we are interested in here is to help people buying insurance for the first time.
Related: 5 essential tips for buying business insurance in Nigeria
It could be a huge proposition given that buying insurance for the first time requires that you put a lot of factors into consideration. Those factors are what I have put together to help you get through the process.
Despite the fact that shopping for life insurance could be very demanding and obviously a huge task, you will be relieved that it becomes easier with time.
The above catch that it will become easier with time is depended on your understanding and mastery of certain skills through these tips that we will share.
5 Important Tips For Buying Life Insurance For The First Time
When it comes to buying insurance for the first time, you will probably be considering so many things that have the capacity to disorient you.
Also Read: How to choose the best life insurance plan in Nigeria
You will be considering the protection plan that best protects you and your family, the right amount of protection that will be needed, the best insurers and so many other factors.
All the above-mentioned factors can be handled by paying adequate attention to these tips that we will be sharing here.
Without much ado, we will go straight to what we want to discuss. Here are the few tips for buying life insurance for the first time.
-
You should take advantage of the “free look” period
When you buy life insurance for the first time, there is always a period of grace called the free look period. It is more of a period to get it together without making a lot of mistakes.
You are advised to take full advantage of this period. You will need to study the policy you are getting. If there are changes that will suit the policy, you are to make them within this period.
You can even reject the policy altogether if you find things that are unsuitable for what you really want. More so, be sure to ask the representative of the insurance company how long you have to make changes so that you don’t exceed the number of days allocated to you.
You can accept the policy, make changes to the policy or reject the policy entirely. It is all up to you.
-
Compare similar packages
As you already know, we have two basic types of life insurance; the term policy and the permanent life policies. It is therefore very wrong to compare the premium of term policy and that of permanent life insurance.
There will be a very big discrepancy with comparing policies that are not similar. When ascertaining the differences between the policies provided by different insurers, compare similar packages.
If it is permanent life insurance policy company A, use the permanent life insurance policy of company B. By doing this, you will be able to make informed decisions on d company you will want to buy from.
-
Understand that life insurance is designed for protection
When buying life insurance for the first time, it is best you understand that the essence of having life insurance is to protect the people you love in the event of your untimely demise. As such, you don’t expect it to start yielding results to you immediately in terms of profit.
Permanent life insurance could earn value over time but they are not meant to serve the same purpose your other investments will serve.
-
Use Policy riders to enhance your coverage
When buying life insurance for the first time, you should endeavor to use policy riders. You will get the riders when you ask your insurer’s representative the kind of riders available to them.
Riders or endorsements are referred to ways in which you can customize your policy to meet your needs and budget
When you select a policy, ask your company representative about the types of policy riders that may be available to you. Riders or endorsements are ways in which you can customize your policy to meet your needs and budget.
-
Buy from a reputable company
When you are buying life insurance for the first time, you will do well to understand the importance of using reputable insurance companies. This is something that has to with your life and death, you should use the best for the sake of the people you want to protect.
