The Safest Cheap Insurance Policies to Buy According to the Pros
Cheapest Insurance May Not Be Safe Insurance
If you are currently shopping around to find the cheapest insurance policy, it is of paramount importance that you not only look around for an insurance policy that is affordable but for one that is also very safe. You should always remember that some things are cheap for a reason!
Why You Should Proceed With Caution!
It is true that in the Insurance and Investment industry, very seldom you may come across salespersons that are outright honest. Secondly, a company may offer you the best deal yet it may turn out to be a low quality insurance or an unsafe company and vice-verse. Today, for example, there are quite a few insurance companies that are loaded with junk bonds, yet carry a rating of "A" or even "B." However, you would never know, unless you did some research, prior to shopping around for insurance rate.
Insurance Tip #1
Whether you are a person looking to purchase life insurance and any other type of insurance for the first time, or in the process of buying more, you might find these tips useful. First to begin, you should never purchase insurance unless you really need it. If by chance you happen to already own insurance policies that you no longer need, you should seriously consider cashing them out, especially if you can do so without significant penalties.
Should it becomes necessary for you to have some form of insurance coverage, it is better to purchase variable annuities or variable life policies. By all means, avoid cash value policies, such as fixed annuities and permanent life insurance.
You should be aware that the money you invest in cash value policies mentioned above is integrated with the company's own assets. Thus, if the company should ever run into any financial problems, your savings will be hurt also. Unlike variable annuities or variable life policies, your investment is kept in separate accounts, and does not become a part of the company's assets. Let's use your 401k as an example; your funds are actually invested in mutual funds.
Overall, according to the insurance pros, your first choice should be term insurance over life, health, auto, and home. The simple reason for this is that you are only paying for the insurance, and because your savings are not tied up, your risk of losing all your funds will be greatly reduced. However, if any failure should occur, your are likely to lose the premiums paid. The possible worst-case scenario you could experience is that the insurance company could also fail to pay your benefits.
Whatever type of insurance you choose to purchase, make it your duty to do a thorough research, prior to investing your hard earn money into any insurance company. Although you should aim to get the most affordable insurance, it is equally important to know the safest type of insurance that you should choose. Bearing this in mind, you should first try to come up with a few good insurance companies, preferably the strongest companies that sell cheap but secure insurance. This should be your number one priority. Your final step is to choose the company that offer the best deal for the same insurance policy you are interested in purchasing.