Sunday, October 28, 2007

How not to waste time and money buying Life Insurance

If you are a parent with a spouse/or and child and children who depend on you to bring home a paycheck every month for their needs, Life Insurance is essential. I bought Life Insurance when I started a family 30 years ago. Why did I do that? I know how fragile life is. I have 5 young children and a wife who will face lots of financial and other problems should had I left this world prematurely. I still had a mortgage on my home for which I have to keep up with the monthly insurance. Default on that, and in no time, my family will end up without a roof over their heads. There are other necessities like groceries, school fees, text books, electricity, water and telephone bills to pay, installments on the car hire purchase, and lots more. Minus me, who is going to take care of that?

Answer is very simple - my insurance company. For I bought Life Insurance even before I had my fifth child. I go, and the insurance company pay. The amount payable will be the sum insured plus any bonuses. Buying insurance then is not as easy as buying insurance now. I had to depend on a life insurance agent. Did I get the best deal? I don't know. But if I am to buy Life Insurance now, I can be more assured that I have got the best and most suitable deal.

Why do I say that? I have a computer at home connected to the Internet. All I need to do now is to turn on my computer and modem, open a browser like FireFox, my favorite browser. That link is a link to a site explaining what you can get from Google Pack which include FireFox with Google toolbar. There are lots of good things I can talk about Firefox browser with tab browsing, but this post is not the post to sing my praises about FireFox and why you should be using it. Perhaps it is, because this blog is all about waste, and with tabbed browsing, you can avoid waste of time, computer memory, etc. But we are at the moment more concerned about Life Insurance, as Life Insurance is more important than just using a good web browser.

So now back to Life Insurance. What would I do now if I need Life Insurance? I would probably surf to, the online source for life insurance, for I can easily answer a few questions by making selections and get an instant list of life insurance companies offering different different premium and conditions, make comparisons and select one, click the "Apply" button, fill in a form, and if everything goes OK, I will get my very crucial Life Insurance policy to take care of my family if anything happens to me. And all this is without having to leave your home, drive around burning precious green house gases emitting fossil fuel, contributing to global warming and wasting time and money searching for the best deal.

However, more likely, before I do that, I would go to The Fundamentals of Life Insurance – A Caring and Smart Financial Decision to find out more about the various types of Life Insurance before I do that. The reason is there are many types of life insurance like Term Life Insurance which is the purest form of life insurance and will empty your pocket the least. It is pure protection. Nothing happens to you, you or your beneficiary or beneficiaries get nothing. But if the unfortunate happened, your beneficiary or beneficiaries can carry on with life without too much suffering. If you don't want to waste money, this is the type of life insurance you should go for, for it is the cheapest.

But it is hard to sell something which is just a piece of paper with no possibility of getting anything back if nothing happens to a potential insured. So Return of Premium Life Insurance was born. Now the insurance agent has a selling point. If, to put it crudely, you didn't die, at the end of the insured period, you get your money back. However, you will have to weigh if paying the higher insurance premium is worth the possibility of you out living your Life Insurance.

There are lots of other types of life insurance. If you are still young, it is up to you now to go learn about the various options and decide which type of life insurance is suitable for you. As for me, my job is done. All my children except one is now working, and in fact buying life insurance themselves.