Derek Siewert - Choose Life Insurance the Smart Way

Today, you have a wide variety of life insurance products to choose from.

Derek Siewert provide best insurance plan and it is important that you select a product that suits your requirements most appropriately. However, the question lies in how to identify what suits your requirement best. The solution to this doubt is simple. All it takes is the answers to a few simple questions. Here are a few essential questions that your agent must ask you to help you decide on a most suitable life insurance plan.

What is my financial goal?

The first question that you need to get an answer to while choosing your insurance plan should be your financial goal. You need to know the purpose that you would like for your insurance plan to serve. Your objective could be protection or financial security, saving for your children's education, retirement, ownership of some valuable assets, or even for your daughter's marriage. Having your insurance need identified will enable you to move on to the next step.

How much am I willing to spend?

Deciding on why you are opting for a certain type of insurance plan is not enough. Derek Siewert says you also need to evaluate the quantum that you are willing to spend in the form of premium, towards this insurance plan. You must ensure that this decision is taken wisely so that it doesn't pinch your pocket in the long run and can be sustained over the full term of the policy.

How much risk am I willing to take?

Your risk appetite is a crucial determinant of the returns that you can expect on your investment plan. The basic principle of investment is: higher the risk, higher the return. Hence, knowing your risk appetite is important to decide if you would be comfortable with a unit-linked plan or a traditional plan. In a unit linked plan, your returns are linked to the performance of the fund you opt for, whereas, in a traditional plan returns are secured and at times are pre-determined.

Evaluate your understanding of the product.

Once you have decided to buy a product, ensure that you understand the product well. Therefore, you must make sure that you are aware of the following...

Does the plan cover the intended financial goals in the unfortunate event of your death?

What is the premium payment mode, i.e., whether it is a single premium policy or regular premium policy. Also, consider the premium payment term.