Availing a life insurance policy is one of the best ways to ensure the financial security of your family in your absence. These days, there are a number of insurance providers that claim to offer you some of the best insurance policies. However, there are a few things you need to keep in mind before investing in a life insurance plan:
How much cover do I need?
One of the most important questions to ask before you buy an insurance plan is, “how much insurance do I need?” An online term calculator is a well-designed interactive tool that can help you decide this. It also gives you an idea of how much premium you need to pay based on your sum assured. This is a swift and hassle-free process. Besides, if you opt to buy an offline policy, cross-checking the details provided by your agent on the company’s website is the ideal thing to do.
Which policy would best suit my needs?
Ranging from whole life insurance, term policies and Unit Linked Insurance Plans (ULIPs) to endowment plans, a number of life insurance plans are available in the market. By assessing your current and future requirements, you can check for the right kind of policy online from the comfort of your home. However, here are a few things you need to look for before buying an insurance policy:
- The sum assured on your policy
- The inclusions and exclusions of your policy
- The amount of premium to be paid
- The minimum lock-in period of the policy
- Whether your policy comes with cash value or not
What are the benefits of the insurance policy?
A life insurance plan has a host of benefits like cash value, additional riders, inbuilt critical illness benefits, and much more. Knowing the benefits of your policy will help you make an informed decision.
What makes the suggested policy different from the rest?
With the help of an insurance aggregator (an online insurance comparison tool), you may compare different policies online and select a policy that best suits your needs. An aggregator will also help you understand what makes your policy different from the rest.
What will happen if you are unable to pay the premiums on time?
Sometimes, due to unavoidable circumstances, you may miss your premium payments. Keeping this in mind, it is essential to check for the terms and conditions of your policy while purchasing insurance online. These terms and conditions will give you an idea of what you may do in case of a missed premium. If you have purchased an offline policy, you may ask your agent for details about the same. Most insurance companies grant customers a grace period of around 30 days, after which, their policy may lapse. However, the terms and conditions differ from one insurance provider to another.
Is the insurance agent reliable?
There are a number of illegal agents who sell customers a policy and then are never to be heard of again. Before you buy an insurance policy, it is important to check the credentials of your agent:
- Verifying the agent’s license will help you determine the agent’s authenticity. It will give you an idea of the experience he has in the insurance sector. By doing so, you may determine whether you are purchasing life insurance from a trusted source or not.
- Note down the contact details of your agent’s reporting manager as well as the branch at which your agent reports to. This will help you verify the authenticity of the agent.
Safeguarding the financial future of your family in your absence is a must. And as with all important decisions, it should be well informed. You should know exactly what the life insurance policy you are planning to buy is all about.