Twelve Secrets and Tricks to Buying Life insurance
Life insurance policies are extremely useful, especially in the present context when different kinds of life threats are increasing all over the world. You can never be sure about taking life lightly if you are married or have a family that depends on you. Here, buying a life insurance policy becomes a must as it protects the interests of your family when you are not there to take care of them.
Today, a large number of life insurance companies are available in the market and they claim to have hundreds of policies that can meet the needs of every individual customer. In such a situation, you must know how to buy a life insurance policy. You need to consider a few secrets and tricks to buying the best life insurance policy. The following are the ones that you can trust and follow:
1. Understand Different Policies
For someone who does not know much about life insurance, it is important to read up a bit. Life insurance is of different kinds and thus, knowing which one suits you is recommended. Some options available are term life, whole life, child plan, ULIP, endowment, and money-back among others.
2. Assess Your Finances
Before buying life insurance online or offline, one important thing you must do is assess your financial situation. The main aim of buying life insurance is to secure the future of your family and thus, to see your assets and liabilities and planning is of utmost importance. Being underinsured is not good and thus, care must be taken.
3. Calculate The Coverage Required
Once the finances are sorted, you must assess the coverage required. To do this you should see your annual income and the minimum coverage should be ten to fifteen times this. Also, you must take into account your debts and future expenses like the education of kids which must be catered to. You can deduct the assets like investments and deposits to ensure your family is comfortable after you.
4. Plan well before the time you need the insurance
You buy life insurance online or offline, what is important is to plan for it. To ensure you are well insured, you can plan things at least 3-6 months before you actually plan to buy the policy. You must shop around and reach leading insurance companies. Staying neutral and comparing life insurance quotes and coverage by spending time can prove to be helpful in the long run.
5. Calculate the Premium
Premium calculators are easily accessible and it is sensible to use these to calculate the amount you need to shell out. Here you can not only compare the premium but also the coverage you will get by paying that amount. A good policy is one that will cover you adequately without spending a lot.
6. Choose the Insurer Wisely
The market today is flooded with insurance companies and thus, the choice becomes tough. Always choose an insurer that has a good reputation in the market and has a seamless claim settlement process. The claim settlement ratio is one such way to check. A company with a high CSR is always a better choice.
7. Avail services from an expert life insurance expert
In case you are serious about getting the best policy online or offline, then you take help from an expert who can explain the policies. Not everyone knows how to buy life insurance and thus, these experts are a blessing. They can even compare the policies among multiple insurance companies and explain all pros and cons. Such services can bring you clarity for the best insurance policies! It may help you in the end!
8. Compare Policies
Never take the policy from the first insurance company you get the quote from. It is always advisable to compare a few before buying. Factors like premium, coverage, reputation, customer service, etc. must all be checked. Buying the cheapest or the most expensive thinking it is the best is a big no. Always compare and buy the one with the best coverage and affordable premium.
9. Buy Life Insurance Early
Premiums of life insurance policies are cheaper when the insured is young. The chances of comorbidities or a claim are lesser and thus, the premium is cheaper. You can always start with a simple life insurance policy and later add riders depending on the need and situation.
10. Avoid falling for extra perks and riders
Most popular life insurance policies come with multiple options to attract customers. They often include accidental death benefits, child riders, etc. The experts term these as riders that make the policies expensive. You can avoid these riders to keep the policies affordable and choose the ones which are essential for you. You should keep things simple and concentrate more on getting a life policy to cover your life. This is one good trick to buy life insurance.
11. Clear the Medical Test Carefully
A medical examination is a part of the policy buying procedure. The company completes the process by sending a medical practitioner who mostly focuses on your health check. You should ensure you follow a healthy lifestyle and keep your weight in check. Also, habits like smoking, etc. can hamper the checkup. Also, while filling up the form you should make sure all data provided is correct as any misrepresentation can cause issues at the time of a claim.
12. Don’t overlook good customer service
Buying a policy is always a critical task. You cannot claim that you know everything about the policies and do not need any assistance from the experts. Here the customer support desk that has the capability to sort out the issues that you may face becomes important. Such a desk can be extremely helpful for every individual policy buyer and you must ensure the insurance company has a food and efficient customer support desk.
While you plan to buy life insurance online or offline, then you must spend some time knowing how to buy life insurance. You must follow the tricks to buy life insurance that this post talks about. These tricks have been tested by numerous beneficiaries and it is now your turn to get the right benefit!