Buying Life Insurance Plans? The Most Important Things to Consider

The decision to buy life insurance is the most important among your financial endeavours. It protects your dear ones and can be of help during a financial emergency.

You have to consider numerous factors when buying a life insurance plan. Given below are a few among them:

1. Do you need a life insurance policy?

Most of us do need life insurance protection. But there are those who don’t need it. If no one is dependent on you, if you don’t have any debt, if you have a large estate and are sufficient to pay all your debts, you don’t need a life insurance policy.

2. Consider your age

This is the thing that deserves utmost importance when determining the type of life insurance policy you should choose. In fact, it is the factor that determines the choices available for you. The younger you are, the more flexibility you have in choosing life insurance products.

Gender is a factor that influences your insurance policy’s premium. In a general scenario, women are reported to live longer than men. This implies that women will have a lower policy premium in comparison with men. But it is getting narrower nowadays. Your health, too, will influence your choices and your premium. The frailer you are, the higher your premium will go. It is also recommended to refrain from smoking if you want to have an affordable life insurance policy. 

3. Evaluate your financial strength

You should have a clear picture of your financial strength before purchasing a life insurance plan. Evaluate your measures to support yourself and your family in the instance of a financial emergency. A thorough analysis will tell you one thing; you are not as prepared as you think you are.

The best thing is to hire a financial planner. Discuss your current financial situation. And the professional will help you decide the type of life insurance you need.

4. Determine the policy tenure

When buying life insurance protection, you are offered two options; lifetime coverage or protection for a certain period of time. If you want it to repay your mortgage loan, the best option is to buy a term life insurance policy. But you will need financial protection till the end of your life. Or you may need an income replacement for your spouse. 

5. Calculate the coverage you need

This is an area where people in general falter. They consider life insurance as a way to handle their large financial obligations. But experts advise that people consider helping their spouse pay off the bills and bring up their children in an unforeseen incident. The general rule is to aim for more than ten times higher than your present monthly earning. But you will have to consider your finances and other requirements before taking a final decision in the matter. 

6. Do a background check on your insurer and its agent

Visit your choice insurer’s website. It should contain lots of information about the company. There will also be things that your agent would not want you to know.

Check your company’s financial strength, response to customer complaints, and claim settlement ratio. You may also read reviews on other websites about the company in question. This will assist in your efforts to make an informed choice. 

7. Go for a policy that offer premium waver and guaranteed sum assured

These two options are generally included in a basic insurance agreement. If they are not there, you should go for the one that provides both. Premium waver takes care of your insurance premium if you become disabled for the reasons mentioned in the contract. Guaranteed insurability ensures that you receive the death benefit irrespective of your health at the time. 

It is highly recommended to buy life insurance online. It is convenient and cost-effective. Since the entire process is automated, you eliminate errors at every stage. The website is sure to have informative content meant to educate consumers to take wise decisions. And if you need to ask a question, the customer representative is just a call away. And you can contact the professional 24×7. 

Buy life insurance; you will protect your dear once in your absence. It is no more a luxury but a necessity of our time.

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