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Life insurance is essential when it comes to peace of mind. It is an important and life-changing decision as it protects your loved ones from adversities that might befall them in your absence. Purchasing pure or term-life insurance is like hiring a security guard: you pay him to protect you or your home and hope nothing happens. If there’s a burglary, that’s where the security guard comes in. His job is to protect your loved ones from adverse situations so they don’t suffer in your absence.
Pure life insurance can seem to be a tough decision as it is not well-explained or properly promoted, making it seem dense, opaque or confusing. You worry that you have to deal with agents, haggle with companies and you are not even sure if the final payout would be what you signed up for.
This need not be so. In reality, pure life insurance is the simplest insurance product of all life and non-life policies. Easier than choosing a car insurance or household insurance, or even liability insurance where there are more decisions to make and more exclusions to think of.
There are only three things you need to consider: You need to understand how pure life insurance works, decide on how long you need a protection and, in case something happens to you, how much money your dependents should receive. That’s it. Read more to understand how you can make an informed decision about pure life insurance.
How does Pure Life Insurance work?
Most policies have a lot of exclusions or clauses in their fine-print, making you doubt if the insurer would pay up fully in the end. Considering the insurance is about your life, there’s no question when the claim would be valid (unless you are a vampire or an undead). Legally, there’s just one reason an insurer might not payout and that’s on you: If you lie on your application form, or are grossly negligent. In these cases the insurer might curtail the payout. We at SafeSide have managed to create a one-page policy, which allows you you to get insured after answering a few simple questions.
What should be the coverage amount for Pure Life Insurance?
The coverage amount of a pure life insurance is a very personal choice. You may want to protect your family against the weight of your debt commitments, such as your mortgage. Or you may consider potential income shortfalls that your loved ones would face if something suddenly happens to you. Check out our calculator to see how your need may look like.
For how long do you need pure life insurance?
Pure life insurance can last anywhere from five to more than forty years. Since the period is so vast, it can get quite confusing to choose the right time period for your requirement. The right period depends on what you want to achieve with your life insurance. If you have kids and you want to buy a life insurance to protect them, calculate how many years it will take before they leave home or set up their own financially independen lives. If you have a mortgage, you should consider buying a pure life insurance for your loved ones until the mortgage has been amortized to an acceptable level. You many also choose to cover the time until your retirement.
Remember, pure life insurance is flexible and easy to understand. With SafeSide, you can get pure life insurance in just a few easy steps on your mobile phone or desktop.