I have often been asked - "is XYZ a good insurance policy?"
It is not possible to answer this type of question. The correct approach is to get a benefit illustration for the policy, provided by an insurance agent. This article explains what to look out for, and how to determined if the policy is a good policy.
Here are the tips on how to evaluate a life insurance policy:
a) If you are buying it as an investment, make sure that the yield is at least 4% per annum. The article explains how you can calculate the yield.
b) If you are buying it for protection, make sure that the monthly premium is not more than $1 to cover $10,000. For example, if you wish to cover $300,000, do not pay more than $30 a month. You can get this cover from a term insurance policy.
It is not possible to answer this type of question. The correct approach is to get a benefit illustration for the policy, provided by an insurance agent. This article explains what to look out for, and how to determined if the policy is a good policy.
Here are the tips on how to evaluate a life insurance policy:
a) If you are buying it as an investment, make sure that the yield is at least 4% per annum. The article explains how you can calculate the yield.
b) If you are buying it for protection, make sure that the monthly premium is not more than $1 to cover $10,000. For example, if you wish to cover $300,000, do not pay more than $30 a month. You can get this cover from a term insurance policy.
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