New To Insurance? 6 Things to keep in mind while buying Life Insurance Policy

buying Life Insurance Policy

Keep these 6 things in mind while buying Life Insurance policy, you will get many benefits.

If you are planning to buy a life insurance policy these days, then you should know some important things. If you keep these things in mind, you will be able to choose the best policy at a cheap or lower premium.

In the age of internet, many insurance companies are providing information about the latest plans, schemes and offers on their websites. You can choose the policy according to your financial needs like child education, marriage, retirement and more.

Here are some useful and important things that will help you understand your Life Insurance needs and make the right decision regarding the life insurance plan for your family, you will get many benefits.

Nowadays, it has become very important to get life insurance policy. There are different life insurance companies offering different schemes, plans and offers, from which you can choose according to your financial goal and family needs and convenience.

Compare policy

You can get information about the insurance policy according to your family requrement and financial goal and budget by visiting the websites of different companies. On many websites you can also see a comparison of the policies of all these companies. If you do this you will be able to choose better policy.

Take other Riders with the policy as required

Alogn with life insurance policy, all the companies offers other benefits like accidental death benefit, critical illness rider, and permanent disability rider with extra premium.

These riders increase your premium. In such cases, it should be taken with the rider policy only when needed.

Choose a policy according to budget

In the Corona era, the income of many people has decreased. In that case you choose the policy according to the budget and life needs, so that you do not have any problem in paying the premium. Millions of people are currently facing financial crisis due to Corona and they are not able to pay their premiums on time.

Calculate Life Cover or Sum insured Amount

Your Life Cover should be at least 10 to 15 times times your yearly income and depand on you age. For example, if your yearly income is ₹5 lakhs per year, then you should have a minimum Life Cover of ₹50 lakh.

The Life Cover or Sum insured that you need depends on number of dependents, your liabilities, your current & future income along with other factors like any existing Life Cover and your assets that you may have.

Plan for a specific financial goal

It is advisable to keep measured, specific and clear goals. For example, “I want to fund my child’s higher education or marriage” or “I want to have a comfortable retirement “ are not specific and measured goals.

An example of a measured goal would be, “I want to send my child to study abroad in 10 years. This costs ₹25 lakh today and would cost ₹50 lakh 10 years from now. I need to plan for it.”.

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Disclose everything including your family history, past health history, your existing Health Conditions, and all existing and proposed Insurance to the best of your knowledge in the form provided, while buying Insurance Policy.