Is your insurance agent really sharing all these details?
Purchasing a life insurance policy to protect your family’s future in your absence is a must. By paying monthly payments on your life insurance, you may guarantee that your family is financially protected in the event of your untimely death.
Things you must know before buying a life insurance plan
However, it is important to choose a life insurance policy after examining numerous factors to ensure that you get the best saving scheme that meets your needs. So, if you are thinking about purchasing a new policy, here are seven things to consider before purchasing a Life Insurance Policy:
1. Your Insurance Needs
The first item to consider when purchasing a life insurance policy is your family’s insurance requirements. Your sum guaranteed should be the amount your family will need to continue living their current lifestyle and pay their future costs in the event of your untimely demise.
There are several methods for calculating the needed insurance coverage; thus, there is no optimal value. However, these are the four most successful ways of calculating insurance coverage that is routinely utilized.
- Human life value
- Income replacement value
- Expense replacement
- Underwriters thumb rule
Your life insurance should ideally correspond to your family’s future financial objectives, current household requirements, future household needs, and future lifestyle costs.
Purchasing a Life Insurance Policy without first knowing your family’s requirements may either cause your family to suffer financially with inadequate coverage or force you to pay exorbitant premiums for a longer period of time with excessive coverage.
2. The Policy Tenure
When purchasing the best saving scheme for your family’s financial security, it is critical to choose the maximum insurance term to guarantee your family is fully secured. Similarly, while purchasing a life insurance policy (insurance-cum-investment) for a particular financial objective, such as your child’s schooling, marriage, retirement plan, and so on, you must choose the appropriate policy duration.
3. The Right Insurance Provider
Many consumers get life insurance, particularly term insurance, from any insurance company that provides the most coverage for the lowest rate. However, selecting insurance coverage only on the basis of the premium may not be a wise option.
Before purchasing a policy, it is best to do extensive research by comparing the best saving scheme offers, benefits, claim settlement ratio, claim settlement procedure, simplicity of purchase and renewal, business reputation, customer service, terms and conditions, and so on, in addition to the premium.
A policy that worked well for a friend or family may not be the greatest option for you. As a result, doing research and selecting the best-suited alternative is a critical step in purchasing life insurance.
Looking for the best saving scheme that offers you several insurance benefits? Look no further than iSelect Guaranteed Future Plan from Canara HSBC Life Insurance. This plan offers you coverage for accidental death, critical illness, and permanent disability. Plus, you can add on additional insurance benefits to make sure you’re fully protected in the event of an unfortunate event.
Canara HSBC Life Insurance is one of the world’s leading life insurance providers, and our iSelect Guaranteed Future Plan is the perfect choice for those who want to be fully protected in the event of an unfortunate event. With the iSelect Guaranteed Future Plan, you can rest assured that you’ll have the coverage you need to support yourself and your loved ones in the event of an unforeseen tragedy.
4. Select Affordable Premium
Life insurance is an investment that must be made over time. As a result, you must exercise caution while selecting an insurance plan and amount assured. The premium you can afford to pay this year may become a financial burden the next year.
As a result, while determining the premium amount, it is essential to consider your future financial security. Furthermore, there could be a disparity between the insurance coverage needed by your family and the price you can afford to pay each year. In such a circumstance, you must strike a balance and choose the appropriate quantity of sum insured and premium.
5. Riders and Add-ons
Aside from the basic death benefit, life insurance plans have many riders and add-ons that can be bought for an additional cost. These riders and add-ons safeguard your family from a variety of dangers. The following are some of the most helpful riders and add-ons:
- Accidental death benefit rider
- Critical illness rider
- Waiver of premium rider
- Child support benefit
- Guaranteed insurability rider
- Accidental disability rider
- Return of premium rider
- Family income benefit rider
6. Claim Settlement Ratio
Another critical element that many of us overlook when purchasing life insurance is the claim settlement procedure. When a family’s breadwinner dies unexpectedly, their family members experience emotional and financial stress.
A speedy and simple claim settlement procedure can assist in alleviating the financial burden for the family. There have been cases when family members abandon insurance claims owing to the time-consuming claim settlement procedure. Such a policy is useless since it does not fulfill the objective of obtaining life insurance to protect your family.
Aside from the claim settlement procedure, you should also evaluate the insurance company’s claim settlement ratio. It will show you the total number of claims successfully paid in comparison to the total number of claims received by the insurer.
A constant good claim settlement ratio indicates that the firm is fulfilling its duty of paying the candidates’ death claims.
7. Payment Mode
There are various options for paying your life insurance premium. It is best to use online auto-payment for premium payments since it ensures that you pay all premiums on time. To maintain uninterrupted insurance coverage, timely premium payments are required. In the event of an offline mode or non-auto-payment mode, you may miss the premium due date, which might result in late payment costs or possibly a policy lapse.
Wrapping It Up
Purchasing the best saving scheme for the first time might be daunting. However, the time you invest in analyzing your needs and doing rigorous research to discover the perfect insurer and coverage is well worth it. It is preferable to get an online Term Plan for life insurance rather than an insurance-cumulative-investment plan.
There are several different investing solutions available to meet your long-term financial objectives. Furthermore, make certain that you thoroughly study and comprehend all of the features, advantages, terms, and conditions, list of exclusions and inclusions, policy exemptions, and so on in order to prevent future disappointment or disagreement.
