NetCare Logo About Us | Career | News | Contact Us | Links

10 Things You should know about Life Insurance

  1. Never by more coverage than you need
    The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you'll be paying unnecessarily for higher premiums. On the other hand it's important not have too little coverage, resulting in you being underinsured.
  2. The healthier you are, the better the rates
    It's true. Healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens you life expectancy (smoking, medications and weight).
  3. By sooner then later
    If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be.
  4. You may be paying more for your monthly premium payments
    You may not realize it, but you may be paying more for you life insurance if you pay your premium in monthly installments. There are additional fees if you make monthly premium payments instead of paying quarterly, semi-annual or annually.
  5. Don't rely solely on the life insurance offered by your employer
    Many employers offer their employees some sort of group life insurance. But this amount of coverage is usually not enough to adequately meet your life insurance needs. In addition, group life insurance policies are not portable, meaning that if you leave your job, you can't take you life insurance coverage with you.
  6. The internet isn't always the cheapest or best choice
    "I purchase my insurance over the internet, so I must have gotten a great deal."

    To be sure, the internet is a great place to shop around and check prices. However, you can't assume that you've automatically gotten the lowest price.

    The premiums posted on some internet sites can be misleading. For instance, they may post a rate that few people will qualify for. Of, they may promote an initial rate, and neglect to mention the premiums will increase over the term of the policy. In addition to this, most if not all are not licensed to conduct business on Guam , Saipan , Palau , FSM or the Marshall Islands .
  7. Naming your estate as the beneficiary can cause headaches for your loved ones
    If you do, the proceeds of the policy then have to go through probate. Probate is the process by which the courts verify that a will is valid. Depending on the size of you estate, probate can take several months or years. During this time, your heirs wouldn't be able to access the proceeds form you policy.

    In addition, including the proceeds in your estate will increase the value of you estate, which may mean you'll have to pay estate taxes, which can be as high as 48%.
  8. Naming your child as your beneficiary isn't always the best choice
    Most people purchase life insurance because they want to feel secure that their children are taken care of.

    It is not generally advisable to name minor children as beneficiaries, but rather to name a guardian for minor children and a trustee for insurance proceeds and other assets to be managed until they reach the age of majority. This will avoid you spouse having to go to court to secure legal guardian papers in order to receive the claim payment.
  9. Tell the truth and nothing but the truth
    If you're thinking about lying on your insurance application, think again. If your insurance company finds out that you lied about a health related condition or you lifestyle (smoking), they may be able to terminate your coverage.
  10. Purchase your life insurance from someone you trust
    With any type of purchase whether it's a stereo, car, home or life insurance, it's important that the sales person provides you the service and attention you deserve.

    When purchasing your life insurance, make sure the agent is licensed, the company the agent sells for is reputable and that all your questions are answered.
NetCare Satisfaction Survey
© 2010 NetCare Life and Health Insurance. All rights reserved. Health Care Fraud | HIPAA | EDI Claims Submission
Contact Webmaster | Privacy Policy | Terms & Conditions