Major Points to Consider Before Buying a Life Insurance

Major Points to Consider Before Buying a Life Insurance

We tend to take every decision carefully utilizing all the resources and options available to us. So when you pay a lump sum premium for an insurance, why to take risks. Choosing a life insurance is not an easy task but it can be made a lot easier by making yourself aware of the important factors you need to consider before taking a decision. Life insurance is important to provide financial assistance to your family for a lifetime. So many options in front of you can be overwhelming. Therefore four important things to consider before buying a life Insurance are:

  • Third Party ratings: You should consider the company you are choosing to have an insurance. To reach a decision, the ratings and reviews from the renowned auditing company help you.
  • Paying ability: Life insurances are of various types and the payment schemes differ from insurance to insurance. Based on your flexibility and paying ability, you should choose the right plan for yourself and your family.
  • Coverage plans and options: you should have a fair idea about the coverage plans and switching options provided by different insurance plans. There are insurance plans, which are for a term and you can terminate the plan and take out the money whenever needed. Therefore, you should consider all these options before choosing the life Insurance.

Claim Settlement ratio: Claim settlement ratio is the number of life insurance claims honoured by the insurer against the number of claims raised. The higher the claim settlement ratio the better are the chances of your claim getting passed without much hassle to your nominees.

Grace Period and Life Insurance

Premium payment is a part of the insurance policy plan. Each policy will have a certain grace period after the due date and the grace period might differ along with different insurance companies. If you do not pay for your premiums within the grace period, the insurance company might cancel your policies.

Though other types of insurance plans have shorter grace periods, life Insurance plans have a longer grace period after the due date as your insurance company wants you to be enrolled in the coverage plans. The grace period varies between 30-60 days depending on the insurer. Your policy plan will be safe during this time.

Once the insurance policy lapses, it is difficult to reinitiate the insurance coverage. You have to provide extra evidence and proofs for the process. In addition, if you develop new medical conditions during this time, the policy initiation is impossible.

You can reinitiate some Life Insurance such as term insurance by paying the entire loan amount and the premiums and another way to catch up with the insurance payment is to pay premiums at least in installments or suspending the coverage for a limited amount of time to pay for the coverage plans. There are several other options provided to save your life insurance policies.

How to Apply Life Insurance Online

As you decide to support your family financially and get to know about the important factors and several options related to the factors, you can start applying for the insurance online without going to any physical agent for any assistance with the Life insurance application process. The process to apply for the insurance is very simple. You just have to follow a few simple steps.

  • Get your quote: The very first step of the application process is to understand the different coverage plans offered by different companies. In the very competitive insurance market, there might be insurance companies out there who would offer discounts on the premiums. Be sure to get all the quotes and compare against your needs.
  • Compare quotes and chose the best one: Get the quotes for the required life Insurance for all the available companies and compare them to get the best life insurance plan according to your requirement.
  • Fill out the online application: Once you choose your plan, you can go to the insurance company’s website and fill out the application form with the required details.
  • Submit application: Once you fill the application form, you need not go and sign the application physically. You can e-sign your name in the application and submit it. In case you have any question, you can call the customer care for support.

Life Insurance plan is not only a choice but also a requirement for everyone for a secured future for your family and for yourself as it is a source of financial stability. To reap the maximum benefit from the Insurance plan, you must choose your plan carefully.

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