Having trouble buying life insurance? We’ve Got You An Insurance Manifesto
A manifesto is basically a public declaration of policies and aims. This is especially related to one issued prior to any election by political party or any candidate. Similarly we’ve written this piece of “insurance manifesto” for all those who are struggling to join the pieces to get the most appropriate life insurance policy.
While buying life indemnity, most buyers aim for a cover 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 manifesto which will help you get what you want.
- 1. Be clear about your essential needs
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?
- Take care of child’s 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. Choose the beneficiaries of the policies wisely
Life indemnity 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. The 3 key questions to answer to determine the term of your life insurance
- 1. 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.
- 2. 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.
- 3. Estimate the time of retirement
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.
Things to know-
- 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 indemnity 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!