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Yes but can you afford it…

The best policy is only the best if you can afford it you could take a great deal of time investigating various options you face when choosing the type and size of a life insurance policy. You can even involve experts in this particular field including those you know quite well and trust. But discovering the best policy for your present and future needs, as far as we can assess the future, is of questionable value if you cannot reasonably afford the premiums.

Yes you want cover whether it be term insurance or whole of life or perhaps an income protection policy but getting the terms of the policy right is one thing, being able to afford the premiums is another.

Now we need to be sure we understand what is meant by being able to afford the premiums. Obviously you would not take out a policy which required significant premium payments if you were on a small even very small income. So it’s a matter of degree.

Just as you sit down and work out the amount of cover you require, so to you should sit down and work out the amount of money you can afford to put aside to pay the premiums. Remember that this is not just a policy which pays out at a certain time or upon your death or incapacity, this is also a form of saving. Your premiums, depending on the policy, after a period of time become available as a source of funds from which you can draw.

Now obviously there are conditions should you choose to borrow from the amount you paid in premiums including the possibility that any payout in the future will be reduced, but you do need to understand that this type of insurance has more than one benefit. It is assumed that many years after you’ve taken out the policy and being faithful in making your premiums, you come across a situation where you need funds; funds you currently do not have. Well actually you do have funds and you can access them if your policy allows you to borrow against it.

The points made in this article can only be described as fundamental. Choosing the right type of health insurance and the right amount of cover are both fundamental issues. Get them right and you immediately have peace of mind and, should an emergency arise, whatever else you have you have a sound financial cover. But in achieving that end result you need to be sensible in your decision-making. Do not overstretch your ability to pay the premiums. The premiums are the key to your peace of mind and a possible future financial advancement but as the years pass by you need as little pressure on your budget bottom line as possible. Remove any unnecessary pressure by choosing a policy with premiums you can comfortably afford.

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Internet Business Resources – KC HUTThis is KC TAN's personal blog. You can find information about how to create and grow your online streams of income here. Find out more about KC by clicking the image on the left.

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