Life insurance plans are so many but before deciding the best plan for you, knowledge in this field is of utmost importance. Buying life insurance is not as easy as we think. A quite tedious task it is to find out the pros and cons of it. Little or no cons are found in most of the cases.
Life insurance is important for all of us and someday in the early age of our life, we require it anyhow. Those who do not know the conditions and are not in a state to take the plans easily. You must have answers to some questions before moving ahead. It is natural and quite obvious that you will have questions that need clear answers to them.
9 Questions to answer before buying a life insurance plan!
The following 9 Questions will help you decide which plan to buy and which company to select to move ahead.
#1: How much life insurance is enough for us?
This context directly refers to how much life insurance amount will be enough for the family at the time of maturity or the sudden demise of the person. How many dependents you have and how much assets you hold determines how much life insurance will be enough for anyone.
There are many forms and tools that are also available online which can help you determine how much life insurance will suffice. How much funds you have saved and how much more is required, all the calculations collectively will yield the desired result.
#2: Monthly premium is fixed or floating?
This is one of the common questions which creeps up in the minds of all; will the monthly premium that will come will be fixed or will keep on fluctuating according to the standards determined by the company?
Read Also: 6 Ways to Measure How Much Life Insurance Do You Need?
There are several plans in which the life insurance premium remains fixed for some time like 10 or 20 years and some remain fixed for the entire tenure of your life insurance policy. Your insurance advisor can make you clear on these points.
#3: What happens if we fail to pay the premium on time?
When we purchase the life insurance plans, we fix according to our convenience and budget as to how we are going to pay the premiums. Which means is it monthly, quarterly, or yearly? This depends on your choice and this you can decide based on your savings and expenses.
The premiums paid monthly have administrative charges and it might cost you more than the yearly premiums. There are several other reasons for a high premium if paid monthly. Expenses vary for all and there might arise a situation when there is some financial issue and you fail to pay your premium on time. If this is the case call your customer care representative and look out for the solution. There will surely be a solution to it.
#4: What all things are covered in a life insurance plan?
It is an obvious question to answer as to what all things are covered in a life insurance plan. Each policy or the plan has different features and benefits and before you move ahead with your plan, make sure you are clear with everything.
The benefits and coverage vary according to the tenure and many other factors. Just sign the documents after clearing it with your advisor or the person who hands over your policy.
#5: What do we understand by ‘riders’?
Life insurance plans have additional features in which they provide add-ons as more coverage. Most of the people go with the basic plan and they do not include riders in it. Once you proceed further with the riders, you are eligible to get additional benefits out of it.
Insurance riders are completely optional which means you may or may not take this one under your life insurance policy. This will certainly cost you a few bucks extra.
#6: Is there any waiting period for the life insurance policy to be effective?
There are several plans which do have a waiting period. Not all of them have the waiting period but most of them have. Therefore, earlier you take the life insurance, better it will be for you and it will have a less waiting period as well.
#7: Is there any physical examination before anyone purchases a life insurance plan?
It is mandatory to undergo a physical examination. Based on your physical examination, the premium is decided and it might be high or low. You should escape smoking and drinking at all costs as they increase your premiums.
#8: How are life insurance benefits paid out?
There are certain terms and conditions which decide how a life insurance policy is paid out? You need to decide the beneficiary name prior in advance so that he or she will be getting all the benefits.
Read Also: 9 Tips On Who Should Be Your Life Insurance Beneficiary?
Get all the terms and conditions cleared before signing any documents.
#9: Is the online payment available for life insurance?
Today is the era of digital payment and hence all the payments of life insurance take place via online mode. Gone are the days when the paperwork was the most common way of any transaction. And to rely on registered paper signatures and other details.
Conclusion
There are so many questions which come up in the mind of people who go for buying any life insurance plan. Reading the documents properly and then executing the plan properly will help you yield good results.
Above are some of the most common questions answered simply. There are so many benefits that one can receive while taking any life insurance policy. Select a beneficiary wisely so that after maturity he or she gets some outstanding benefits.
One of the other advantages of taking life insurance is that you can avail of tax benefits. There are several other features of proceeding further with the life insurance policy. The beneficiary name shall always be in your life insurance policy to be on the safer side. Buying life insurance is a great thing to move ahead with, hence don’t delay and buy one for yourself.
