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How To Select Best Life Insurance Policy Quotes?

By Vikas Chandra Das
21 July 2022, 11:46 AM
how to select best life insurance policy quotes

Life insurance is something you should not live without. We live in challenging times and no one knows what rude shock awaits at the next corner. If you have dependency members who look towards you for all their needs, you need to protect their future with a good life insurance plan. A life insurance plan is a contract between you and a life insurance plan, where you buy the policy and pay the premium. In case you die, the insurer pays a sum assured to your family who in turn use the money to pay for their expenses after your demise. There are many types of life insurance products and you should choose a cover very carefully.

Selecting Your Ideal Life Insurance Policy Quote

Buying a life insurance plan is an important task and you should take your time before you make a purchase. Take the following points into consideration before you make a selection:

  1. Type of Plan - This is the first and perhaps the most important factor to consider. As mentioned above, life insurance is available in various forms. You get endowment insurance plans, term life insurance plans, annuity plans, whole life plans, ULIPs, child plans, etc. Every type of plan offers different covers and features and they are all priced differently as well. You need to understand the clauses and mechanism of each plan, weigh them against your needs and then see which option suits you the best. Once you understand the type of life insurance needed, you can proceed towards looking for the best quote.
  2. Number of Dependents - Next, you need to see what the requirements of your family are. Every family unit is different and so you need to sit down and make a note of the financial duties you have towards your family members. For instance, if you have a child, you have to account for her higher education costs. If you have old parents, you have to account for their health expenses. Once you know what your requirements are, you can find a proper life insurance coverage and pay the premium accordingly.
  3. Level of Debt - Then, you need to see how much debt you have. If you are repaying a home loan or a personal loan, you need to include the debt amount in your life cover. If you die unexpectedly, your family should be able to use a part of the death benefit received from the life insurance policy to clear the dues. Do the math and then select a life cover big enough to include your debt liabilities.
  4. Duration of Plan - You need to buy a life insurance plan for the correct duration. This calculation should be based on your family’s needs, your income-earning years, etc. This is again very important as you need to keep your loved ones protected for as long as possible.
  5. Reputation of the Insurer - Different life insurance companies offer different quotes on their life insurance plans. You need to choose an affordable quote, but you also need to buy the plan from a reputed and trustworthy insurance provider. Unless your insurer is good, you won't find success in the life insurance plan. Do not buy a cheap plan if the insurer is not reliable.
  6. Riders - Another important pointer is the add-on cover you buy. Add-on covers in the form of riders are available with all life insurance policies. These riders allow you to make your life coverage more flexible and also to increase its scope. However, every rider is available at an added cost. So you should choose your riders carefully and only buy the ones that are of maximum use to you. The riders will affect the life insurance policy quotes so choose wisely.
  7. Your Budget - And finally, you need to work within your budget. Do not buy a life insurance plan that has an unreasonably large quote. You won't be able to afford the premiums and may end up with a lapsed policy. So buy a plan that is economical yet comprehensive and suitable for your needs.

All the points mentioned above should be considered very carefully before selecting on a suitable life insurance policy quote.

In conclusion

Never make the mistake of buying the first life insurance plan that you come across. You need to choose your policy very carefully after going over the factors mentioned above. Unless you select the right policy, your family won't benefit from it after you die. So take your time, do your research and then select your plan with care and you and your family will have the best possible protection.

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