So you're considering getting some life insurance cover. It's not like stepping out to buy a pair of shoes, unfortunately. There's a lot to consider, keeping in mind your needs, finances, the benefits and what have you. Well then, just to gather one's thoughts, perhaps it would be a good idea to consider the following before taking that essential step forward:
Do your homework:
• Take stock of your finances - past, present and future.
• Be clear about what you want out of your insurance cover.
• Use the internet to scour around and check out the various kinds of policies available.
• Check out the various Insurance companies and their ratings. The higher the rating, the better. This will be to your advantage when it comes to claims and settlement.
• Choose your Insurance agent carefully. He/she should be able to produce his/her license, have an in depth knowledge of the various products and add-ons, understand your needs and come up with a suitable policy.
Know your needs:
Some of the factors that should influence the kind of policy you go for are:
• Depending on your finances, choose the kind of policy where payments suit your payment abilities.
• Find out the different plans available with the different companies offering insurance, for the plans do vary. But at the same time do keep in mind the rating of the company.
• Do you need your policy to solely benefit the nominee on your demise?
• Do you need your policy to pay you a monthly pension when you retire?
• What are the tax benefits?
You and your agent:
By now there should be much clarity in your mind about what you really want and how you want it. This will help the agent understand how he can help you out with the right product.
• If you are not comfortable with the agent in question, do not hesitate to go with another one, for this is, after all, a very important decision that you need to make and you cannot afford to go wrong.
• Ask a lot of questions
• Understand what is on offer in each policy plan.
• Find out about premiums to be paid, modes and frequency of payments.
• Get a comparison on the plans as well as the quotes.
• Be absolutely honest and clear in giving all the details, falsifying will only lead to complications and rejection of claims.
• Make sure all the requirements are written down and has your confirmation before the policy is finalised.
• Find out the terms and conditions of issuance of the certificate.
• Be clear on the claims procedure.
Having done the deed:
Once you have opted for the policy of your choice, made your payment etc, you should be in possession of the certificate within a month of its having been issued.
However, here are some things you need to check for:
• Go through the policy with a fine toothed comb making sure it is all you had agreed to.
• Should there be a disparity, there is a stipulated period of time within which you can bring this up with the company and have the policy either altered or cancelled.
Having considered the various options and taken the right decision, you have earned yourself some peace of mind, and perhaps indulge the urge to go out and buy yourself a pair of shoes!
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