If you are a family person with dependents, you need to provide them financial protection even when you are not around. The best option is to consider buying a life insurance policy. It provides lump-sum money to your loved ones in case of your untimely death so that your family’s financial needs are fulfilled. It is an affordable financial protection plan which gives you peace of mind as you know that the people who rely on you, will be financially stable even if you are not around to provide for them.
How to compare life insurance quotes online?
Now that you know the things to consider when comparing insurance policies many online resources provide life insurance info. You will be able to find some of the best life insurance quotes through such online resources today. Hence it is essential to know how to compare the quotes. Here are a few tips to compare quotes
Compare options: To buy the best life insurance that suits your needs as well as make it budget-friendly ensure that you compare quotes from several companies. The premium varies depending on factors like the type of coverage, gender, age, health, and several other personal factors.
Don’t trust incomplete profiles: Company credibility is an important factor when you are comparing quotes. An unknown company may provide you with a lesser premium but may not be the most reliable. Another thing to know while comparing quotes is to not rely on companies that do not provide complete and critical information about the insurer. Top brands always provide valuable information about themselves.
Get a no-obligation quote: If you are only looking for information and interested to know how much it costs you can ask for quotes. That will give you an idea of affordability and companies that offer good coverage based on your needs. Ensure that these quotes are obligation-free and you don’t have to buy their products.
Use an effective comparison tool: To effectively compare quotes there are many comparison tools that can be used to calculate how much coverage is needed based on your needs and also provide budget-friendly options along with access to insurance providers and advisors who can help you figure out affordable policies. The tool should make your life easier by ensuring that the quotes are mentioned in such a way that it is easy to see and compare the details and not have to navigate to various screens.
Basic things to know about life insurance
As per some studies, there is a large percentage of the population that does not have life insurance. But having one is essential in financial management and here are some of the things to know about it.
Types of insurance
There are two types of life insurance
- Term insurance: Which covers a limited term of 10, 20 or 30 years and if the insured dies within this time frame the beneficiaries will get a payout. There is no buildup of the cash value in this type of insurance.
- Permanent life insurance is also known as whole life insurance and apart from providing death benefits it also has added features like cash growth, loan facilities, etc. The cost of this type of insurance is more than term insurance.
Choose a life insurance policy with a premium that you can afford to pay. Most of the time when the going gets tough they tend to stop paying premiums and that defeats the purpose of buying insurance in the first place. Buy a policy that is affordable after checking the pros and cons so that even if you have to make budget cuts you can still pay for the insurance.
Start of payout
Determine the start of payout in case of the death of the insured. Many insurers provide No exam life insurance where there is no need to undergo medical screening to obtain life insurance. But the catch is that they have a waiting period of 2 or 3 years after purchase to get 100% benefits if there is an untimely death of the insured. If you are looking for a product that starts benefits with immediate effect then you will need to undergo medical examinations. Ask an expert before proceeding with either.
Determine the sum assured value you need
How much life insurance you need is dependent on your family’s needs and expenses like debts on house, funding children’s education, etc. There are many calculators online which help you determine the amount.