Getting Best Life Insurance Policy Made Easy

Everyone needs to get life insurance at some point or the other. The purpose of this article is to help citizens get the best life insurance policy. While buying life insurance, most buyers aim for best life insurance policy. By best life insurance policy it means a plan which would suffice one’s requirements at reasonable cost.

Many people want to get the best deal from a company one can trust. However, getting started seems to be the toughest leap for many people. Therefore, I have made this essential checklist to help you get the best life insurance policy.

1.       In order to get best life insurance policy you need to set your priorities right  

This refers asking yourself about things your life insurance policy must cover for you.

For instance, will your plan cover the following things-?

·         Pay your funeral arrangements?

·         Pay your outstanding balance like mortgage or other debts?

·         Offset loss of income? If yes then how long?

·         Contribute to your children’s future education?

·         Combination of all the above or part of them?

Tip- You can take help of online life insurance calculator to estimate how much you require to allocate for achievement of your goals. Simple, it will help you determine the insurance amount of coverage you should consider and the premium you will require to pay.

]2.       Who will be the beneficiaries?

Life insurance companies offer several products suiting different lifestyles as well as family needs. There are individual covers and joint covers which insures both the policyholder and spouse. It’s known as joint life plan.

Usually, joint life plans provide coverage prior to the death of any of the partner thus transferring the insurance benefits to the survivor.

3.       What should be the duration of your life insurance?

This requires you to answer the following questions-
When do your expect your mortgage to be paid off?

The amortization phase of your mortgage loan will help you to determine the duration of your term life insurance plan.

When do you expect your children to complete their education?

One day your children would have completed their education. Therefore, having excess of funds to pay educational expenses may prove to be unnecessary.

4.       When do you plan to retire?

This is crucial as one may be left with less replaceable income at that time.

Knowing the duration you will require the coverage for, will help you select the right product.

Tip-

1.       Take help of certain online tools to figure out the most appropriate policy as per your requirements.

2.       Multiple benefits at lower costs- Life insurance plans are the best investment vehicles for those who can’t afford individual insurance like health insurance or home insurance. It will help one to meet future medical expenses as well as periodic payouts to suffice requirements like daughter's marriage. It will also help in periodic payouts to suffice requirements such as child's further studies.

So I hope that you have got the necessary how much, who as well as how long questions answered to your satisfaction! What is the next step?

You are ready to shop!

The Essential Reasons To Purchase Life Insurance

The importance of life insurance is understood perhaps after marriage. It is because the person has to shoulder an array of responsibilities after marriage. Post marriage comes various responsibilities like taking a house with the help of mortgage loans. Also, the children education has become increasingly costly. Therefore, getting an educational loan is another huge expense. In order to cover such expenses life insurance policy is an essential benefactor.

The importance of a life insurance plan is seen from the role it plays in building sound financial plan.

Perhaps, life insurance forms one of the cheapest plans in India. However, the decision to purchase one should not be based on the price factor. After all there’s no cost factor attached to securing one’s family against future uncertainties.

Listed down are the essential reasons to purchase life insurance-

1.      Family members receive a sum assured amount

The family members depend on the bread winner for financial support. Hence, life insurance becomes a must as it provides the family with necessary income after the wealth provider dies.

2.      Role of life insurance in family planning-

One major advantage of getting life insurance policy early is that you’re able to efficiently plan for your future family expenses well ahead of time. This also includes the unborn children as well. For instance, you’re able to estimate the cost of mortgage and education costs and purchase a plan deciding on a certain sum assured value. Hence, at the time of unfortunate death,  your family won’t have to suffer the brunt of huge expenses.

3.      Ability to allocate amounts to the right people-

Life insurance lets you select the right beneficiaries who will be the legal heirs of your valuable assets. It’s a great way setting your kids towards a secured financial future providing the necessary monetary help which may arise in future.

4.      Helps to sustain essential financial obligation-

Essential financial obligations include high fixed obligations like home loans, education loan & medical loan. And the situation worsens if the family is unable to pay the debts after the demise of the bread winner. However, possession of life insurance policy will help the family deal efficiently with such fixed costs.

5.      Gives your child required financial security-

Every parent wants his/her children to pursue best education which demand a premium. However, you cannot predict future and therefore it is essential to have certain measures in place. These measures are such that if anything happens to you, your dream of giving your children the best education remains intact. A life insurance plan is one such measure which will provide a sum assured value to your children thus taking care of their educational needs.

6.      You’re relaxed-

For a person, nothing can be more painful than his/her family submerged under the brunt of huge expenses like child's education and medical expenditures after death. Getting life insurance policy takes care of such expenses when you’re not there to take care of the same. 

Selecting Permanent Life Insurance At The Right Time

The phase of your life when you buy life insurance highly influences the rate of your premium. Hence, it is imperative that you get life insurance at a time which favors lowest premium.

The purpose of this article is to suggest measures on deciding the right time to purchase life insurance.

Get insured when you’re healthy and young-

The timing of selection of life insurance plan has a significant effect on determining the premium of a person getting insured.

Life insurance tip- It is considered that the best time to buy life insurance is when you are young and healthy. It’s because this is the time when you can benefit from low premiums. In order to stay healthy, avoid smoking and perform regular exercise. This will not only keep you healthy but also help you get a policy with lowest insurance premium.

Further, you will learn about permanent life insurance plans in India.

Permanent Life Insurance

Permanent life insurance plan is different from a term insurance plan. In terms of permanent life insurance, the insurer pays out the death benefit regardless of whether the insured dies a day after signing the policy or 50 years later.

Permanent Life Insurance | Tax-deferred plans

The quality of permanent life insurance plans is to grow tax-deferred after a certain period of time appeals many buyers. It results in a significant change. The person can use the saved money in several ways. This favors provision of additional benefits to the policyholders as well as their families.

Permanent life insurance plans are more expensive than the term insurance plans in India. This may be a reason for younger people and families who have limited income to avoid such plans.

Tip- You can convert your existing term plans into permanent life insurance plans. However, you need to ensure about this to your life insurance company. There are certain people who want to convert to a permanent policy. However, it’s the inability to pay higher premiums which prevents them from taking such plan. In such a case, ask your insurance agent about the term plans with this feature.

Further, you can browse through the various benefits of life insurance plans.

Benefits of Permanent life insurance plans-

1)   The buyer can choose from a range of options. There are 4 common types which you can choose from-

a)   Whole permanent life insurance plan

b)   Universal permanent life insurance plan

c)   Variable permanent life insurance plan

d)   Variable-universal permanent life insurance plan

Whole life plans- It is the simplest form of permanent life insurance. It offers 2 types of benefits- 1) Death benefit and 2) Additional benefits of savings account.

When you buy whole life policy, you’re agreeing to pay fixed premium amount for a pre-decided death benefit amount. Unlike term insurance plans, the whole life plans can earn yearly dividends. This will let you earn interest when you leave them to accrue.

Universal life plans- These plans are more flexible. Also you can easily determine the death benefit and compare it with the value of premium payments. Therefore, you will know whether the policy is beneficial or not comparing the value of death benefits and premiums you pay.

Variable permanent life insurance plan – These plans provides permanent protection to the beneficiary upon the death of the policy holder. They are most expensive type of cash-value insurance because it allows you to allocate a portion of your premium amount to a separate account comprised of various instruments and investment funds within the insurance company's portfolio such stocks, bonds, equity funds, money market funds and bond funds.

Variable Universal Permanent Life insurance plan - It is a policy that combines variable and universal life insurance. This is one of the most popular insurance policies because it gives its policyholders the option to invest as well as alter the insurance coverage with ease.