Question

In creating a plan to buy your life insurance, what factors should you consider before buying? Also, describe from whom you should buy, including the sources. Pls write atleast 300 words.

Answer 1

Factors to be considered before buying Life Insurance:-

1. A appropriate amount of premium
Although the sum of insured coverage is relevant, the monthly cost you pay to maintain insurance alive can not be overlooked. This sum must be carefully selected so that daily payments are easy and affordable.
Calculate your monthly costs, such as bills, rent and EMI credit and check how much you have left for every month. You risk losing your life insurance when the premiums are too high and you are unable to pay at some point during the tenure.

2. You should have reasonable coverage
You have to consider the difference between a need and a want to measure the coverage value. If your family does not need so much, you do not have to choose life insurance which promise crises of rupees at the expense of high incomes.Go for something reasonable that actually takes care of your family's costs for several years, such as school charges, EMI loans and bills and day to day charges. A fair estimation, which is a rational coverage, is your current salary, multiplied by ten.

3. Check that the payout time is short
Many life insurance plans are very easy to qualify, but catch-you have to wait for the death payout for a period of 2-3 years. Make sure you're away from them. Your family will immediately need financial resources after you die, so your insurance policy should have a rapid payout feature.

4. Option to convert
If you use a term life insurance plan that is only available for a particular term, it helps to turn the policy into a life insurance scheme as it passes the expiration date. Some policies do not permit this and such policies should be avoided.A conversion option allows your conditions to be reassessed after your life insurance is finished and you can easily take out life insurance if you find like you need life insurance.

5. Ask your insurance agent about the coverage of your policy.
Each policy includes hazards not covered, called "excluded" insurance policy. Ask the insurance agent to clarify at the beginning the exclusions of the contract, thereby saving you the stress and annoyance of identifying them after a loss is sustained.

Sources of Buying Policy:

1. You can approach directly to policy issuer branch and initiate process.

2. Can be purchased from nearby agent.

3. Also online like https://www.policygenius.com/ etc.