How Important is it to Buy Life Insurance For Family?

This is exactly when the life insurance for a family comes into the picture. 

What is a Life Insurance Policy?

In the simplest words, a life insurance policy is an agreement between the policyholder and the insurance company. In case of the demise of the life assured or upon the maturity of the policy the insurance provider will pay the sum assured as per the policy. The policyholder can also choose riders; however, riders are the alternative paid benefit accessible in the life insurance plan.

A life insurance plan is a complete reduction tool that is designed to reduce the risk of the financial loss that your family might suffer in your absence. This life insurance for the family assures you to pay the lump sum to the dependents. The life insurance for a family will never let the financial stability or lifestyle suffer.

In India, it is rare; an individual does not have a dependent that relies upon the earned income. Moreover, the financial literacy in the country is low and not every family has made reliable provision in case of the sudden demise of the breadwinner of the family.

In case you do not have a life insurance policy in place, it is your family that would have to bear the financial brunt and instability.

Let us get into understanding life insurance policy so that you are aware and make an informed decision.

How to Select the Right Life Insurance Policy?

Listed below are some steps that will help you to select the right life insurance for your family:

1. Take Advice of the Insurance Expert

   It is possible that you might get confused when buying a life insurance plan. At the initial stage of buying the plan, you should get in touch with an insurance expert who will be able to guide you with the benefits and features. Make sure that the insurance expert is a reliable source and holds good knowledge in regards to the life insurance sector.

2. Compare the Life Insurance Plans

   As the market is flooded with insurance companies that offer life insurance plan, you need to select the plan that suits your requirements and the pocket as well.  It is recommended to buy the life insurance policy online as you will be able to compare various life insurance quotes and various other parameters that will help you to make a wise choice.

3. Calculate the Life Cover

   It is important to calculate the sum of life cover. For this you need to assess your income, the dependents, the liabilities or debts if any and the everyday expenses on the premise of the lifestyle you lead, which will help you decide the sum assured. You can also use an online life insurance premium calculator. This would give you a rough estimate in regards to the premium payment that you would end up paying depending on the frequency of the premium.

When is the Right Time to Buy the Life Insurance Plan?

Knowing the right time to buy life insurance for the family can surely save a considerable sum of money. Most importantly, anyone who does not have any dependents does not need a life insurance plan. Therefore, invest your money where it is required and that will turn out to be more productive.

The ideal time to buy the life insurance plan is when you have dependents upon you. These dependents could be your life partner, the parent or your children. In case you delay buying the plan then it would prove to be a costly affair as the life insurance premium would get expensive with the passing age.

Before You Buy the Life Insurance Plan

Now, let us quickly understand the following factors that need to be kept in mind when buying the plan:

1. Understand the Plan 

   We all are aware that there are a plethora of insurance products available in the market. On one hand, the premiums might be fixed and on the other hand, you need to dole out in different amount. The death benefit also varies depending upon the kind of insurance policy. So, select a plan that suits your requirements, easy on your pocket and helps you to achieve your long-term goals. Remember, the insurance policy premium needs to be paid regularly so that the policy is active and does not lapse.

2. Do Not Forget the Liabilities

   When buying the insurance policy the family must be covered against any financial distress. At the same time, it is to be noted that how the dependents will address the liabilities if any. Liabilities might include a bank loan, child education expense, and so forth. So before you buy the insurance policy make sure that you have assessed the needs of the family in every way possible. Evaluate the premium cover extent that might be required by the family. Buy the insurance plan that fulfils your requirements and secure the financial future of the family. Moreover, while choosing the life cover keep in mind the aspect of inflation as well.

3. Make a Wise Choice

   Invest proper time, conduct thorough research before you make the buying decision. In times of COVID-19, the digital route is the preferred choice of everyone. Similarly, browse through the web and buy the plan online. Moreover, you will be well-educated and informed in regards to every aspect of a life insurance plan. Remember, there is a difference between insurance and investment and insurance is simply not limited to a mere tax-saving measure. Buy the insurance plan from the insurance company, which has a good reputation in the market, provides excellent customer assistance and a good claim settlement ratio. Doing this will let you live in peace, the experience of insurance will be hassle-free and it lessens the scope of regret in the future.

The Bottom Line

Securing your family members financially with the right life insurance policy is the ideal way to avoid any sort of hardship that they might face in case you are not there tomorrow.

With the advancement of technology, you can easily buy life insurance for your family online without any hassles. Compare the features and the quotes and make the best buying decision.

Stay Safe!

Note: It is suggested to calculate the term plan premium on the term life insurance calculator online tool by Policybazaar before buying.