There are a lot of people who buy life insurance policies without giving it much thought. There are customers who opt for such coverage blindly on the word of an agent or reference from a known person. You might end up buying a completely wrong product that will not match your requirements. The premiums for such products could also be higher and you might end up paying more. Mentioned below are a few pointers that put you on the right path to buying a good cover at a reasonable rate.
Term insurance is usually what you require Unless you are faced with certain specific situations like taking care of a minor or tending to tax issues related to estates the most favorable route to buying coverage is term insurance. The product is designed in such a manner that you buy coverage for a specific period say for example 25 years. In case you die during the term period of the policy your nominee to the policy will get the insured amount. In case you have an objective of securing the future of your children then it is best to choose a term that ends when your kids are above an age wherein they can take care of themselves.
Scout for policies online With the onset of the internet revolution you do not need to depend solely on insurance advisors for the purpose of buying life insurance. There are a host of websites online wherein you can check for premiums to be paid. This will also give you an idea if the host of products that are available in the market and the various add-on benefits that are available with such products. There are websites available online that let you compare all products feature wise and premium wise.
Take inflation into account when you choose your cover Another important factor to consider when you decide upon your life insurance coverage is inflation. This essentially means that in future the cost of living is bound to go up and to maintain the same lifestyle your family would require a bigger amount than what it takes today. Hence the cover that you decide upon must have taken the inflation factor into account.
Choose your beneficiary carefully The most important aspect of buying a life insurance cover is to ensure that in the event of an unfortunate incident occurring, the proceeds of the policy must be passed on to your beneficiary without any trouble. Hence be very careful when you assign your beneficiaries on record. There could be issues if the beneficiary is a minor. You could look at other options like setting up a trust and making the trust the beneficiary instead of the minor.
To find a good life insurance (as Danes say it find en god livsforsikring) policy do remember that the greater purpose of buying one is to protect your loved ones and hence you need to exercise due care and attention while selecting the product and the insurer. It would also be wise to check out the feedback that the insurer has received from its previous customers.
Term insurance is usually what you require Unless you are faced with certain specific situations like taking care of a minor or tending to tax issues related to estates the most favorable route to buying coverage is term insurance. The product is designed in such a manner that you buy coverage for a specific period say for example 25 years. In case you die during the term period of the policy your nominee to the policy will get the insured amount. In case you have an objective of securing the future of your children then it is best to choose a term that ends when your kids are above an age wherein they can take care of themselves.
Scout for policies online With the onset of the internet revolution you do not need to depend solely on insurance advisors for the purpose of buying life insurance. There are a host of websites online wherein you can check for premiums to be paid. This will also give you an idea if the host of products that are available in the market and the various add-on benefits that are available with such products. There are websites available online that let you compare all products feature wise and premium wise.
Take inflation into account when you choose your cover Another important factor to consider when you decide upon your life insurance coverage is inflation. This essentially means that in future the cost of living is bound to go up and to maintain the same lifestyle your family would require a bigger amount than what it takes today. Hence the cover that you decide upon must have taken the inflation factor into account.
Choose your beneficiary carefully The most important aspect of buying a life insurance cover is to ensure that in the event of an unfortunate incident occurring, the proceeds of the policy must be passed on to your beneficiary without any trouble. Hence be very careful when you assign your beneficiaries on record. There could be issues if the beneficiary is a minor. You could look at other options like setting up a trust and making the trust the beneficiary instead of the minor.
To find a good life insurance (as Danes say it find en god livsforsikring) policy do remember that the greater purpose of buying one is to protect your loved ones and hence you need to exercise due care and attention while selecting the product and the insurer. It would also be wise to check out the feedback that the insurer has received from its previous customers.
RSS Feed