With the number of educated individuals growing in the country, insurance plans are also higher in demand. The number of companies offers various insurance plans which accustom an individual to the confusion of – what to buy?
If you are in plans of buying an insurance plan or even if you are about to suggest it to someone, here is what you need to consider.
- How much does it Cover? – It is significant to know how much does your insurance plan covers. Ideally, it is said that your insurance sum should cover 12 times your annual income minus assets plus your liabilities. If your insurance plan fulfils this then you can go ahead.
- Tenure of your policy –If experts are to be believed then your insurance policy tenure has to be your retirement age minus current age. For instance, you are 45 and your retirement age is 60 then your policy tenure has to be 15 years at least.
- Choose Online – Choosing online would cut down your cost by 30% hence, buying insurance plan online definitely works well in your budget. The brokers and middlemen get eliminated when it comes to online insurance plans. This is why choosing an insurance plan online is definitely recommended.
- Reputed Company – No matter how cheap the deal seems and how feasible the terms and conditions look, always choose a reputed company. A company with strong stakes in the market provides you financial security and stability. Hence, choose wisely.
- Income Factor – The policy premiums are variable. You must not overlook the income factor. If you are a sole bread earner of the house then in taking a policy that involves huge premium could be disadvantageous. See to it that you do not end up spending on premiums more than you could.
- Go through a Medical Test – Going under a medical test is largely advisable. This gives you a clear picture of your medical background. The medical tests would make you aware of your eligibility to take up the insurance plan.
- Buy the policies in block – Instead of investing your money into one major insurance plan, you can always try to split it into two small insurance plans. This would allow you to attain the flexibility of discontinuing one while continuing another.
- Consider Liabilities – As an individual, you must be having liabilities to conquer such as home loans, children education and marriage etc. You need to ensure that the more liabilities are there, the greater coverage of insurance plan is required.
- Company’s Customer Service – Customer service plays a significant role for any customer. A smooth customer service would enable you to understand better and gather the aid whenever required. Hence, it is always good to opt the company that owns a good customer service.
While the market is loaded with countless policy plans you need to carefully analyze your requirement beforehand. Insurance policies are the matters of finance which is why a thorough research would always help in opting the right one.