Read these five tips before purchasing life insurance
In this unpredictable environment, you have to have confidence in the safety of those close to you. This can be accomplished by arming yourself with a life insurance policy.
What is life insurance?
A life insurance policy is a legally binding agreement between you and a life insurance company. In exchange for the regular premiums that you pay, the insurer gives you or your loved ones a sum of money after a specific period called due date or in the event of death.
However, a life insurance policy has several additional advantages in addition to providing a financial safety net for your loved ones in your absence. It can serve as a savings vehicle, give you financial independence in your old age and help reduce your tax burden. There are several advantages to investing in a life insurance policy.
5 good tips before purchasing life insurance
Buying insurance coverage can be a difficult process. Hundreds of insurance companies and their various products saturate the insurance industry.
Therefore, most consumers interested in purchasing a policy rely on their brokers to guide and support them.
Choosing the best insurance is achievable with the help of an agent. It is crucial to note that asking the right questions of the agent can help speed up the decision-making process.
Additionally, you need to know the features, benefits, and specifics of the policy before investing in a policy, which requires you to ask relevant questions before purchasing the insurance.
1. Check the coverage offered by the plan
When looking for an insurance policy, you should consider coverage. Insurance coverage is defined as the liability or risk that is covered by insurance services for a business or person.
For health insurance policies, you can ask your agent if it is a critical illness plan or a daily hospital plan to better understand the coverage. Coverage will vary by policy.
Before purchasing insurance, make sure you understand its coverage. The worst mistake you can make is assuming all policies are the same.
2. Get help from the insurance agent
Insurance companies now provide an Insurance Requirements Analysis Calculator, asking customers to enter personal and financial information. The Needs Analysis Calculator identifies your insurance needs.
While these calculators are useful, it is essential to realize that they are not suitable for your particular needs. This is where an insurance agent can help.
By asking important questions, you can further analyze the coverage you need. The insurance representative will tell you what coverage you need.
3. Gather information on insurance options
Rather than letting the agent decide for you, you can ask them to brief you on the plans. You might ask her about the pros and cons of dieting.
A forward plan, for example, may be suitable if you have a limited budget, but a donation may be a better option if you have a long term goal and are willing to pay a higher premium.
When you understand what a policy entails, you can make the best option. As the agent may have a minimal understanding of your financial needs, it is essential to ask relevant questions regarding the plans.
4. Find out how the insurance company is rated
It is essential to investigate its financial structure before choosing to inquire among the many plans offered by insurance companies. Consult the annual reports.
Annual reports will give you an idea of what the company does, the policies it offers, and whether the policies meet the needs of investors.
The insurance agent must have a valid license that allows him to sell insurance. IRDA should issue the license. It is recommended that you do not reveal your personal information or papers until the license has been verified.
5. Get all your queries clarified
Ask the agent directly about the premium you will have to pay. Your premium will be determined largely by your age. It can also differ between men and women. If you have a pre-existing condition or if you smoke, your premium will be high.
Look at the frequency of bonuses. Is the premium due once a year, twice a year or once every three months?
Will you be charged late fees if you don’t pay the premium on time?
Also get clarification on the amount at maturity. Determine how much money will be paid to the candidate in the event of death. Check with the agent if there are any other bonuses available in addition to the money promised.
Top 5 Life Insurance Plans You Should Check Out
1. Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan
Canara HSBC Oriental Bank Of Commerce – The iSelect Star Term Plan is an enhanced life protection plan that addresses your family’s financial concerns in the event of death. It also includes cover for terminal illness and disability, as well as additional benefits for women. At the time of enrollment, you can select the level of protection you want under this plan.
2. Birla Sun Life BSLI Plan Protect @ Ease
The BSLI Protect @ Ease Plan is a term insurance policy that provides complete financial security for your family in the event of death. The plan has been designed to meet all of a family’s needs and therefore offers versatile coverage alternatives. This plan also compensates policyholders who adopt healthy lifestyles.
3. LIC’s Jeevan Pragati plan
Jeevan Pragati is an unbound life insurance policy issued by LIC that combines life insurance policy and savings. During the term, the plan is eligible for an automatic increase in risk coverage every five years. Policyholders can also get a loan under LIC’s Jeevan Pragati plan.
4. Aviva i-Life
Aviva i-Life is a term insurance plan that provides your family with comprehensive financial protection in the event of death. When your loved ones are faced with bad circumstances, the low-cost plan works as an added safeguard. Aviva i-Life is a protection plan. Thus, it does not provide maturity benefits. The characteristics of Aviva i-Life are shown in the table below.
5. Bharti Axa Life Elite Secure
This is a low cost plan that provides full financial assistance to the insured’s dependents in the event of an unforeseen disaster. The plan has low premium rates and the ability to insure your life until the age of 75. Sections 80C and 10 (10D) of the Internal Revenue Code apply.
To wrap up
A life insurance policy is a valuable financial instrument. Keeping these ideas in mind and conducting extensive research can help you make an informed choice to find the most satisfactory life insurance policy with adequate coverage.