With the rising cost of living, life insurance has become a necessity in everyone’s checklist. It is no surprise that you can find dozens of insurance companies and hundreds of insurance policies in the market today. Buying life insurance policy can become a bit tricky with the availability of so many options. Therefore, you must consider several factors before buying an insurance policy.
Things to keep in mind when buying life insurance plan
If you have been thinking about purchasing or renewing your insurance policy, do not forget to tick these factors off your list before the ultimate purchase. Check out the things that you must keep in mind when buying an insurance plan.
1. Insurance Coverage
Purchasing insurance policies involves a comparison of the coverage of different policies. You must calculate the worth of the policy depending on your annual income, premiums, investment assets, and your liabilities.
2. Tenure
You must buy a policy of a tenure equal to the period of your retirement age minus your current age. You surely do not want to go around renewing your policies now and then.
3. Term & Conditions
It is essential to take a closer look at the terms & conditions, inclusions and exclusion, and the disclosure of the policy before the purchase.
4. Add-ons
Do check the available add-ons to your preferred policy so that you may include any needed coverage with a slight increase in premium amount.
5. Buying life insurance online or offline
In earlier days, it was obvious that you had to buy life insurances from the company insurance agents. However, now it has become easier to buy insurance in just a few clicks. With the paperless process, you can enjoy buying life insurance online from the insurer’s official portal or several other reliable websites like PolicyBazaar, PolicyX, etc.
FAQs (Frequently Asked Questions)
1. How to buy a life insurance?
Steps for buying an insurance plan.
- Check and compare the above-mentioned factors.
- Check the online review and feedback of existing customers.
- Know about the claim settlement ratio and process.
- Go for a though medical test before purchase to avoid claim denial.
- Finally, purchase the insurance plan you have chosen online or offline.
2. What are the reasons for buying life insurance?
Purchasing insurance is important as
- It provides financial security
- Financial support to your family
- It can help you settle debts and expenses
- It is passed on as an inheritance
- Most importantly, it provides you and your family peace of mind.
3. Can grandparents buy life insurance for grandchildren?
Yes, grandparents can buy life insurance for their grandchildren as most insurers allow it. However, it may vary from insurer to insurer and thus you must enquire about it from the insurer, agent, or customer care before making the final purchase.
4. What are the different types of life insurance in India?
Following are the most common life policies in India are:
- Term Insurance Policy
- Endowment Policy
- Whole Life Policy
- ULIPs (Unit Linked Insurance Plans)
- Money Back Policy
- Pension Plans
- Children Insurance Plans
Final Thoughts
Purchasing an insurance plan may not be a difficult task but a tricky one. Hopefully, our guide on “how to buy life insurance policy” has helped you to make an informed decision about buying life insurance policies.
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