There are some important things to keep in mind before buying a life insurance policy. Many times people buy the wrong policy in a hurry. That’s why you should buy the policy wisely.
If you are planning to buy a life insurance policy, then before that you should take care of some important things. Many times people buy the wrong policy in a hurry. That’s why you should buy the policy wisely. For this, you should take care of the premium, budget, company, policy term etc.
1- Choose a policy by deciding your budget
First of all, decide how much life insurance cover you need. For this, you can also take the help of calculators of many finance websites. Along with this, you should look at the insurance policy as risk coverage rather than investment. It is generally believed that one should take a life insurance cover of at least 10 times the annual income.
2- Compare Company Buy Policy
Before buying a policy, you should check the claim ratio of the company. If you are buying a term plan, then companies with 95% claim ratio should be preferred. The claim ratio can be checked on insurance aggregator websites. Then decide the company based on your budget.
3- Buy policy from different companies
If you want to cover life insurance for a higher amount, then get it done by different companies instead of one. Suppose you take a cover of Rs 50 lakhs, then you should buy a policy with a cover of Rs 25 lakhs from two companies.
It has two advantages. If the person dies, then due to some reason one insurance company rejects the claim of insurance, leaving the possibility of accepting it from the other. Second, if after a few years the need for insurance becomes less, you can surrender one policy and continue the other.
4- Time period of the
policy The tenure of the policy matters a lot. Generally, by the time people retire, most of their financial responsibilities are fulfilled. Therefore, the policy tenure should be such that it is completed only around the age of retirement.
5- Which policy and how to buy
you should compare the premium, claim settlement ratio, cover of the insurance policy. For this you can take help of website. For this nowadays there are many websites with which you can compare. After this, you can buy the policy according to the features of the policy and your need for insurance. You can buy the policy online or offline. Buying a policy online is cheap and easy.
