Friday, 24 May 2019
Life Insurance

5 Things You Should not Miss Before Buying a Life Insurance Policy

things to look out before buying life insurance policy

To have someone’s life and future secured with an ideal life insurance policy is certainly no joke. If a person is financially dependent on you, then it is always a wise choice to buy a life insurance policy, as a token of security and future stability to a certain extent. However, there’s more to it. You got to find out the best life insurance policy that can help you with all the needful aids you are probably looking for.

Purchasing a life insurance policy isn’t as simple as placing an order to buy your favorite apparel. There are several facets to be explored and reviewed before investing. Well, I have decided to talk about the best five hacks that can save you from blunders and assist you with the right guide to choosing a life insurance policy for your family and near ones.

Link your policy type to your goals

At times people end up purchasing a life insurance policy just for the sake of making an investment or in order to enjoy tax benefits and the likes. But that is where I believe the customers tend to commit a grave mistake. You should always try and link your financial goals to the type of life insurance policy you are planning to buy.

For example, if you plan to buy a particular insurance policy, then take some time out to decide on the long-term financial goals you will be required to meet. From supporting higher education for your children to coping with their marriage expenses in the future, the list seems to be vast. This calls for a safer and wiser choice of buying a life insurance policy, which is concisely linked to your goals.

Be choosy with your insurance agent

According to a statistical report, the millennial generation likes to do their own research while looking for things over the internet. However, such is not the case when it comes to hiring an insurance agent. They would like to consult the person face-to-face prior to making any decision. The process of roping in an insurance agent is no child’s play, here are a few attributes you may like to find in an agent before allowing him to sell you a policy.

  • Honesty
  • A good listener
  • Persistency
  • Technical knowledge
  • Quick problem solving skills

Moreover, the insurance agent must be consumer-oriented who can simplify the policy details for you, instead of making things complicated. It is any day better to stay safe than repenting later for roping in a fraudster disguised as an agent.

Regardless of financial dependency; life insurance is still important

It doesn’t matter if you aren’t financially dependent on someone or in case the other person isn’t dependent on you, life insurance will still remain an important aspect. You never know how the tables turn and what uncertainties await your fate in the near future. Thus, it is always the right choice to opt for an ideal life insurance policy even if there is no one to depend on you financially.

Both you and your partner decide on contributing a moderate chunk of money to buy and maintain a life insurance policy, so that the investment can come in handy in times of trouble, loss of income, sudden deaths and the likes.

Never ignore filling in the application form yourself

This is something to take note of. Most of the insurance buyers tend to allow the insurance agents to fill in the application form on their behalf. But that is certainly not something you should ever practice or opt for. You will eventually be able to understand the entire insurance process and every other hidden facet of it.

This, as a result, will allow you to develop a clearer vision about every critical detail of the policy. Additionally, it will also help you to stay away from the clutches of misinformation and inaccurate policy details which are often spread by fraud insurance officials and agents.

Buy the insurance policy at the right time

Time indeed is precious! And you got to buy a life insurance policy, ideally at the right time. Premiums tend to rise with time. Thus, the longer you will wait, more will be the amount of money shelled out from your pocket.

Thus, you can choose to buy a life insurance policy at an early age, for example, right after you get a job or during instances when you have a lump sum to spend. Simply invest the amount wisely and purchase a policy that offers a lower rate of premiums. There’s simply no point waiting for that “ideal time” to come, and finally ending up paying high premium charges in the long term. If you have the amount to spend and the time seems to be suitable to make an investment, do not remain in two minds. Simply do the needful.

For instance, according to a case study brought out by the ABS-CBN News, the policyholder named Melvin Esteben found it suitable to buy his first life insurance when he got married. This is again an example of people considering life insurances at an early stage, rather than waiting to buy policies in their late 40s.

Thus, with so many critical aspects to be reviewed before buying a life insurance policy, you cannot afford to overlook them and make an investment in haste. Now that you know what all requisite measures can save you from choosing the wrong policy, it’s time to implement the wisest of all strategies and secure the life of your dear ones with an insurance plan worth embracing.

Author Bio – Marceline Joseph is an online educator, programmer and math solver associated with Tophomeworkhelper. Besides being associated with the education and teaching industry, Marceline is a passionate stamp collector and chess player

Mr. Dinesh loves his career and thus has gained a strong foothold in the field of digital marketing. He is compassionate and therefore strongly promotes the ideology of meditation. He is a meditation mentor and voluntarily promotes meditation. He is a passionate reader of science and spirituality and this is the reason he has the most practical fundamentals of leading life.

  • I really enjoyed your article. Actually I used to invest in non life insurance policies but I am thinking to buy a life insurance policy. Can you please let me know the best life insurance plans in India? There are lot of life insurance companies in india but which should we switch for.

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