If you are an adult, who earns decent and is planning for the future then one of the most basic things is to get life insurance. Not only does it prevent your family from going through a crisis if something unfortunate happens to you but it is also a solid investment plan.
There is a general perception that getting a life insurance can be a tedious task especially if you are getting one for the first time, so here are a few things to keep in mind before getting a life insurance for you and your family.
1) Be clear about the basics questions first.
Know why you want to purchase a life insurance, what your end goal is and what you expect from it. This will help you to zero in on the exact policy you want.
Majorly people buy life insurance for these 4 reasons;
- Protection of standard of living for the family
- Providing for child’s education or marriage
- Planning your retirement
- Plans to hand it over to your future generations
There are a lot of options for each of these needs, so know why and what you want, to get the right policy that meets all your needs.
2) Decide how often you can pay your insurance premium to keep your plan active.
You can choose between paying the premium in one lump sum or paying it in intervals of every month, quarter or year.
3) Life insurance companies often give add-on services which are called Riders. Make sure you research and make full use of these Rider services. You can avail them for critical illness, death by accident and other income benefits. So don’t forget to inquire about them at the time of purchase.
4) Make sure you select an insurance company with a high claim settlement ratio. You can easily check it on IRDA’s official website. Other than that, choose an insurer that has a hassle-free claim process. You can ask your family and friends about their experiences before choosing one.
5) When you are comparing price quotes of 2 life insurance companies make sure you are looking at similar products. For instance, term life has a lower premium than a permanent life insurance. So don’t just look at monthly premiums look at the entire feature list of the policy and then compare.
6) Choose your beneficiary wisely. Avoid naming a minor child as your beneficiary since they don’t get the funds sometimes. It’s better to talk to your financial agent to figure out the best person who will receive all your money in case something unforeseen happens.
Now that you know what all to consider before getting a life insurance, it’s advisable to get one as soon as possible since life insurance is one of the most important things you should get while planning your future.
To know more, click here.This content has been created in association with YONO SBI.