Talking about insurance, maybe life insurance is insurance that is still less popular than health insurance or unit link insurance. Even so, the insurance industry continues to grow every year.
At least these positive symptoms are a sign that people are slowly becoming aware of the benefits of life insurance. Because of increasing age and the severity of the work, it also increases the risk of death that may be experienced. Especially those who live in big cities like Tulsa. Because of this, people began to be interested in applying for life insurance and began registering with Tulsa Insurance.
Here are some mistakes that are often made in applying for life insurance in Tulsa.
1. Thinking of Insured Enough for Life Needs. Evidently?
These are benefits that can be obtained from using life insurance. This means that it is very important to know well how much sum insured will be received if at any time there is a risk of death for the insured. Does the sum assured meet the needs of the heirs well or far from enough?
It should be noted that it is wrong to think that the protection of life insurance will meet the needs of families left for long periods of time. Fluctuating inflation rates and increasing living needs will affect the value of the sum insured.
For this reason, you must know how to calculate life insurance coverage. There are three formulas used to calculate the amount insured: the method of value of human life, Income-Based Value, and Value Based on Financial Needs. Choose life insurance whose calculation formula is profitable according to you and your family.
2. Improve Investment Value, Not Coverage Value
Many life insurance users focus more on the investment benefits contained in the insurance products they buy and not on the life protection benefits contained in them. Whereas in investment, the investment value can go down and also have a fairly high risk.
If premium payments are based on investment returns, it is possible that the insurance coverage received is not optimal, especially when the investment value decreases significantly. Cases like the average are experienced by customers who buy unit link life insurance.
For that, choose pure life insurance or insurance without including investment benefits. This is better for those of you who want to feel the benefits of insurance as a whole. You can invest by investing money into several instruments. One of them is by using deposits.
3. Interpret Life Insurance Provides Self Protection, Apparently?
Not everyone needs life insurance. Because this insurance only provides benefits to heirs, namely those who are under the responsibility of the insured. That is, the sum assured is only given to the heirs. Yes, the insured does not receive the sum insured? So, don’t buy life insurance if your self-protection insurance or self-acceptance is expected.
4. Interpreting the Insured incorrectly in the Policy
The insured in the life insurance policy are those who become the backbone of the family / people who have dependents. That is, if he dies, his family will lose the provider. Anyone who works and makes more money in the family must be insured in life insurance. No need to buy life insurance for those who are not breadwinners, such as wives, children, or parents who have not worked.
5. Expect Maximum Profit from Unit Link Life Insurance. Evidently?
Many people start using life insurance because there are benefits to investing in it. Of course the insurance they buy is unit link life insurance. They assume that they invest and benefit from life insurance protection at the same time as investing.
This assumption is not wrong, but insurance and investment benefits are not optimal. Why? Because when paying insurance premiums, premiums are automatically divided for insurance and investment. It’s good to buy pure life insurance so that the maximum benefit of insurance is obtained.