Things to know before buying the right life insurance

When it comes to life insurance, there are so many options that it is hard to pick the right one. It can be really confusing. 

 In fact, the confusion over what kind of life insurance to buy explains why people do not prefer buying life insurance. However, after the outbreak of the covid pandemic, people have become increasingly conscious of the benefits of buying life insurance and staying insured. 

Before you plan on buying life insurance policies, here are some important things you must keep in mind: 

Analyse your current life stage

A person passes through various life stages. For instance, you get your first job, get married, become a parent, and retire from work life. At these different stages, your plans and requirements differ. You need proper planning before buying a life insurance policy. 

Determine the amount of life cover you need

The life cover you need is determined by your liabilities, number of dependents, your current income, assets and any existing life cover, if you have. People are advised to own a life cover that is 10 times your annual income. 

Choose the longest possible term

The longer you invest, the more money you will earn as the money gets compounded. For instance, investing 1 lakh for 5 years at 4% interest rate will give you Rs. 5,63,298 while investing the same amount for 10 years will give you Rs. 12,48,635/- @ 4% interest rate 

Choose your add-ons wisely:

There are multiple additional covers you can add to your life insurance policy. You must choose which of them is the best fit: 

• Additional cover for death due to accident:

In case you die unfortunately during the policy tenure, this cover will protect your family by giving the amount payable along with the basic sum assured. 

• Cover for critical illness:

In this case, a lump sum amount will be paid to the policyholder, if he’s being diagnosed with a severe disease. 

• Waiver of premium on disability:

If the policyholder becomes a permanently disabled person for life during the policy tenure, he will no longer have to pay the future premiums for the remaining policy tenure. 

• Waiver of premium on critical illness:

If the policyholder suffers from a critical illness during the policy tenure, he will no longer be needed to pay the remaining premiums. 

These are a few important things you must remember while you buy online insurance plans. Before you sign the contract papers, make sure you are well-informed. Consult an expert insurance agent and clear your doubts. 

We at Ginteja offer genuine insurance advice, catering to your insurance needs. Contact our experts today and buy Ginteja insurance policies at affordable rates!