Shopping about life insurance gives you great idea of rates. Are you doing survey for life insurance cover and comparing insurance plans with cheapest premium payment. You find difficult to estimate correct value of insurance you need. For buyer Premium is not a single factor to buy insurance. But you need to evaluate features of product and benefits are essential.
Learn how to decide your life insurance rates
All these factors play an important role on insurance company. It is important for you to weight product feature as per your life stage. If you buy insurance plan in 20s premium will be less. Also, you must know that premium depends on various factors and do not depend on low premium price only. Below are steps you must take when buying an insurance plan.
There are many things you need to keep in mind before buying an insurance policy. So that it will cover all your financial needs at an appropriate cost. To help you with hassle of buying an insurance policy below is steps for buying an insurance policy in India. You can see what is purpose of life insurance?
Know Your Need before Buying Insurance
First of all you need to understand your need of buying an insurance policy. There are different types of insurance available in market and each policy serves different purposes. So you will buy insurance for protection of life and it is calculated by HLV (human life value) method.
In case you are not able to do yourself take the help of financial advisor to calculate sum assured. If you choose pure life insurance you look for coverage, sum assured, add-on and settlement claim. Keep in mind that plan offer add-ons as they protect against accidental death, disability and critical illness.
It provides extra protection above plan for small extra cost. You need to plan that give you coverage for long period of time. So you need to invest at an early age so that your premium rates are low and you can lock price.
Check your payment capability
When you cannot afford do not buy policy and remember you are buying policy to cover financial losses not to save tax every year. You need to give some standard aspects to cover life insurance. Such as age, gender, policy and premium term and sum assured.
Types of options
When you are buying pure protection or term plan you need to know which option gives you coverage and riders. On other hand, buying many policies can affect your budget. Term plans are security for your dependents in case anything happens. Hence, you must go for riders plan.
For example simple term plan may cost you less and provide you high cover. But if you compare to term insurance plans with Return of Premium option will give you entire premium refund in case your survival. In such case you will get same cover but premium amount will go high.
Compare your Plans
After choosing some policies you need to compare premium rate of similar product as rates and offer differs from company to company. Every insurance company has different experience and risk because of their product rate. Also, insurance web aggregators can help you to compare insurance policies.
So you need to take insurer capabilities that include network, servicing options, digital connectivity, instant resolution and ability to pay claims. Your comparison is based on policy coverage, benefits, features, add-on and good service after buying policy.
Follow simple steps mentioned in article and choose best insurance policy for you. Wrong decision will effect financial on your whole life. So take your time and make wise selection. Understand terms and condition of your policy and get your query solved before buying.