Are you planning to buy a life insurance policy? Check out basic guidelines like what is life insurance? What is life insurance premium? How are premiums calculated? And tips for buying life insurance policy.
Life insurance is a backup of providing a financial support to your family even after you pass on. It is a way of proving that you have a sound financial structure. There are multiple life insurance plans available today. Opting for a good plan will protect you and your family from unexpected situations and also help you achieve your long term goals.
Life based insurance generally falls into two major categories: Protection Plans : Structured to provide benefits in the case of specified event. For example – Term Insurance Investment Plans – Structured to provide good benefit of capital by premiums(either regular or single premiums). For example – Whole Life Policies.
Life insurance premium is an amount that you pay to the insurance company to purchase any policy. In return to this, the insurance company pays your nominee certain sum of money after you pass on. However, in situations of unfortunate accidents, if you become permanent disable, then the company does the payment to you, and usually they pay this in installments.
The factors considered for calculating life insurance premium are age, gender and health. Basically, a younger person has more age span so they have longer maturity and the premium is also cheaper. Medical history of the family also play very important role. Suppose the person’s family members suffer diabetes, blood pressure or any other illness, then the concerned person is asked for medical checkup and is put under the category of high risk buyer. Later, the insurance company does a complete study on his health reports and plans with the team whether to insure the person or not.
Consult Your Friends Usually, many people believe in the power of insurance policies and definitely your many friends must have opted for some plan. Immediately consult your friends on this – Ask them which insurance company is good to rely on, what are the multiple benefits that will help you, how long they have been associated with a particular policy and company, etc.
Online Insurance Bang on! Online insurance is definitely the best track route about multiple insurance companies. You can find all the relevant information about any company, their plans, their branches, etc. You can compare their insurance plans, get free quotes, speak to their agent online.
Take Good Care of Your Health! As mentioned earlier, medical records are very important while getting insured. The better you are in health, the cheaper your rates will be. So, quit smoking, tobacco chewing and get in shape. Monitor your eating habits daily. The more you are in shape, the more you will enjoy healthy lifestyle.
Buy Your Life Insurance Early In the young age, we never get time to wonder or think about things like insurance. However, this is the best time to buy a life insurance policy for yourself. The younger you are, cheaper are your policies.
Renew Your Coverage on Time If someone is already using a life insurance policy, then, make sure that you renew your coverage periodically. You never know when the circumstances and requirements of your life changes.
Ask About Payment Discounts Instead of paying your insurance premiums monthly, check whether your company offers you discounts for paying them annually. Normally, many companies do and one should grab this opportunity.
Know The Different Life InsurancePlans There are multiple life insurance plans available across multiple insurance companies. They offer term life, whole life or universal life. As part of your duty, it becomes important that you do proper inquiry on all the plans available. Basically, every plan is designed to cater multiple needs and requirements. So depending on your current need opt for the right plan.