Precautions While Choosing Life Insurance

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As soon as a person becomes major and becomes self sufficient by choosing one profession, service or business, he also starts thinking for savings for his future. It is a obvious, that choosing a right type of savings which secures his own future as well as the future of his family becomes his priority. By insuring his own life, he secures his own future till he is alive and after that he secures his family. This is what life insurance is. Now, the next step he/she has to take, is to choose a right insurance policy, to insure his/her own life as well as the life of his/her family member in the form of a secured investment that provides a better return on a prescribed and suitable period/term. In the present circumstances, a person has to work till an average age of 60-65, so that he/she may be able to discharge his/her responsibilities and after that particular age lead a peaceful life. Or otherwise, if incidentally, before discharging his responsibilities, he dies leaving behind his family, then his family may be able to discharge those unfulfilled responsibilities. So following points need to be kept in mind while choosing right life insurance policy with correct period/term plan:

  1. Since choosing a right life insurance requires long term planning, one should keep income criteria in his mind, his family maintenance expenditure, short term savings etc., after that the amount spared to be paid as premium, for life insurance, can be ascertained.
  2. Comparison of various life insurance schemes of different companies is required to be done, so that good return, better terms and conditions and standing of the insurance company, are the ingredients to be observed.
  3. Discussion with the agents/representatives of the insurance company and thereafter compare those explained terms and conditions from the website of the insurance company, so that one should compare the genuine offer of terms or the unethical lucrative terms of offers.
  4. Adequate cover, with lowest premium, terms of payments, repayment conditions in case of maturity or repayment conditions in case of death claim are also to be ensured. This can be ascertained by comparing premia of various insurance companies with the offer of terms and conditions etc.
  5. Too high premium paid for policy purchased without proper planning can also be harmful as over a period of time one may not be able to continue the life insurance policy and may be forced to surrender.
  6. A regular check on the policy terms and conditions updates, which may affect the family and self or alternatively the terms and conditions as stipulated in the policy itself shall be governed.
  7. After the purchase of policy, it becomes a compulsory liability of the persons concerned to continue without any gap, so that no ifs and buts are created at the time of maturity or claim.
  8. Awareness amongst family members is also to be generated, so that in the absence of the policy holder policy should be kept alive or upon his/her death, process of filing claim should be initiated.

It is a universal truth that no one wants to die an early death and moreover everyone wants that his/her family remains protected from financial crunch after his/her death. So decision to get a proper/adequate life insurance is very vital for an individual.

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