Life is full of uncertainties, so always be ready for that. Financial security and protection will always help you. By taking insurance, we have a backup plan for unexpected happenings. Before buying insurance policy many factors are important to consider like health, age, income, and liabilities etc. Before selecting any insurance policy you should consider some facts that are given below.
Always choose an insurance policy which will able to fulfil your needs, coverage of insurance should maintain the lifestyle of your family. Always keep in mind, the family members which are dependent. Future planning needs savings and for that, you have to choose a plan which is best for you. Raise the number of funds which can sustain your family’s current lifestyle.
Life will not be as easy as you are living right now, it may vary at different life stages. Responsibilities increase with your age, so this part is also important before choosing an insurance plan. Always choose a plan which will be more useful in your future and can cover your increasing financial responsibilities. Dependent members need increase day by day and these responsibilities for a single person may be a burden.
Sometimes just an insurance policy cannot help you, because of its late claim settlement. Choose an insurance company which has an effective claim settlement ratio. Claim settlement ratio represents the number of claims which are settled. Choose a company which has a higher claim settlement ratio. Many people died and their nominees are unable to take the claim amount, so choose a better company for better claim settlement. Companies which have higher claim ratio known as more trustworthy companies.
Many insurance companies are offering a variety of plans, you just have to select the most suitable plan. For selecting a plan you can take the help of an advisor, they will recommend you the most suitable plan based on your needs. Before spending your hard earned money you should be very careful with the choice of plans you buy. Choose an ideal plan which comes at a competitive price and meets your requirements.
While choosing an insurance plan, buy it online. In online policies, you can compare various factors like coverage, claim settlement, money etc. Buying plan offline or online makes a huge difference. In online policies, a comparison is much easier. Many times insurance agents can make you fool by offline policy just for their commission but it is on you what you choose. Presently almost everything is gaining popularity online because people got to know about new things.
The cover time is as crucial as the insurance plan. A plan must cover a person till he/she wants to work. Presently people are working after their 60’s and require an insurance cover till 65. Policy term plans are best to buy when you are young because the premiums are little. Premium is directly proportional to your age, premium increases as your age.
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Inflation causes the price of products to rise, that’s why the value of rupee drops. Presently the amount you are insuring may not be enough for you after 10 years. Assuming inflation of just 5%, the value of Rs 1 crore will only be Rs 63 lakhs. For this problem, many insurers offer plans which cover amount hikes by 5-10% per annum. Our expenses increase day by day so we cannot perfectly assume our expenditure after 10 or 15 years. So before buying any policy keep an eye on inflation.
Before calculating the amount of life cover see your debts, a number of dependents, income, liabilities and your expenses based on your lifestyle. Select plans among endowment plan, term plan, unit link plan or a combination of plans which will provide you help. Planning of other needs like your child’s education, pension for retirement, marriage or a woman’s insurance plan, consult your insurance advisor for an ideal solution.
Riders are a loss of employment cover, disability cover, and waiver of premium cover. These riders can be added by paying a small premium. Considerable value to the basic term plan is added by the riders. In partial disability, it needs a minimum 15% loss of income to qualify for benefits. Many contracts require duties, income or loss of time to receive partial benefits. On every contract, a rider should be included. Whose income is going to increase in future, a rider is extremely important.
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With the help of the internet’s resources know about the insurance basics, find an advisor you trust who can help you to choose the best policy. Insurance and investment both are a different term, don’t mix the two. Understand all the indication of many types of life insurance policies before buying them. Bottom line is the company’s statement of income.
An Insurance policy provides enough coverage at reasonable prices. Before buying the plan you should examine your requirements with respect to money, cover, age, and future needs of your family. Be absolutely sure before buying a policy. Here we have discussed many factors or points which can be useful before buying an insurance policy. Life is full of unsure events, without warning. An insurance plan can be your financial security against those unsure events. At the young age we don’t think about death, but as responsibility increases, we search for backup plans. Be insightful while choosing an insurance policy because it involves money and protects your family in your absence.
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