How To Compare Life Insurance Quotes
One of the primary aspects of buying life insurance, customers need to be aware of is life insurance quotes. What is this aspect of life insurance and why is it important? Life insurance quotes give you an idea of how much you will be expected to pay into the plan to get the sum assured and add-on features you desire. This may allow you to effectively plan your finances to include your life insurance premiums, as well as compare the plans you like, to know which one may suit you best. How do you get life insurance quotes for any of the insurance plans available? Getting a quote as well as a comparison of life insurance quotes may be easy, and quite often, a free-of-cost online process. You can use online life insurance premium calculators for this purpose. You can also compare life insurance quotes offline if you think it suits your schedule.
Before we take a deep dive into how to compare life insurance policy quotes, let’s first take a quick look at the types of life insurance plans.
Types of Life Insurance
Life insurance is a broad category where you will come across different types of life insurance plans. Each of them has different features to offer. Before you compare life insurance quotes, it is preferred to begin by understanding the various types of life insurance plans. Here are some of the commonly available life insurance plans in India.
• Term Life Insurance
If you want your plan to primarily focus on offering you a life cover for a limited duration, term life insurance plans may be a suitable l option for you. These plans are also affordable, as they may offer a significant sum assured for relatively lower premiums.
• Whole Life Insurance
Whole Life Insurance plans come with a life cover of up to 99 or 100 years of age, and depending upon the insurer and policy features it may also provide a maturity benefit if you survive the policy term. These plans offer relatively long coverage durations. Thus, if you think that you will be shouldering life responsibilities for a long duration, you may like to opt for a whole life cover.
• Unit-Linked Insurance Plans (ULIP)
If investing is on your mind, but you also seek a life insurance cover alongside without having to contribute separately for it, ULIP may be the plan for you. These plans are for people with varied risk appetite and are market-linked. The market fluctuations do not affect your life insurance sum assured. These plans allow you to create a corpus to be able to support your future financial goals and dreams while also keeping your family financially secure.
• Endowment Plans
If you seek a life plan, and also want maturity benefits in the form of savings, you may look into endowment plans. Along with maturity benefits, these plans also offer death benefits and survival benefits. The corpus that these plans may pay out could help you achieve financial growth in the future. On the other hand, the death benefit paid out could help your family stay financially secure, in case of your unfortunate demise during the policy term.
• Child Insurance Plans
If you are worried about the future of your children, especially fulfilling their educational needs, a child insurance plan is the type of life insurance plan you may need. This type of policy offers a life cover to the parent, and other policy benefits help create a corpus for the meeting the life goals of the child. Moreover, these policies also offer maturity pay-outs, which are offered at significant milestones during the life of your little one. These may be used for their higher education, entrepreneurial aspirations, or even saved for the wedding they dream of having, among other milestones.
Some factors to consider before choosing any Life Insurance Plan
When looking to buy a life insurance plan, the first step is to decide which plan seems to be the suitable option for you. Only then should you move on to consider the most suitable life insurance quote. Start by understanding the features of various plans. Once you do so, you can then move towards getting an idea of how much you will need to pay into these plans and what will it buy you. For example, for the same amount of sum assured, you may have to pay a lower premium for one plan, while it may be slightly higher for another one. However, it is possible that the latter may offer you some additional benefits.
Here are some of the factors you may consider while making a purchase decision of a life insurance plan.
• Sum assured:
This is the amount of coverage you can get from your policy. In the case of life insurance, this amount is what your nominee may expect to receive if they were to submit a claim during the policy term.
• Policy type:
The type of policy you choose will determine the features you may have access to. Before you decide which policy to buy, ensure you understand what each one has to offer. Choose on the basis of what you think is suitable for you.
The premium is an important factor to consider when buying a policy. You need to ensure that your premium amount buys you the coverage you seek while ensuring that it is affordable for you.
• Claim settlement ratio:
This is the ratio that tells you the percentage of claims your insurance provider has settled in the past financial year out of the total claims received by it. Ideally, a high ratio would indicate that the insurer is settling a larger proportion of the total claims received.
These are add-on features offered so that you may be able to enhance coverage of your plan on payment of nominal additional premium. Commonly available riders include, critical illness, waiver of premium, accidental permanent disability, and more.
Once you have compared the plan types, you can choose which one suits you. Once you do so, you can move towards getting life insurance quotes for the same.
Start with the life insurance premium calculator for the plan you find most suitable to your needs. To get quotes from this calculator, you might need to input a few details, such as your age, annual income, gender, desired sum assured, desired premium payment frequency, and more. Based on your personal details as well as the plan specifications, the premium calculator will give you the estimated amount you will be required to pay into the plan to get the life cover.
You can do this for multiple plans using their corresponding online calculators. Some calculators will also get your contact details and may provide you with the option of getting life insurance quotes by email. This will allow you to have access to multiple quotes.
Once you have these details, you can consider all available life insurance plans and get a better idea of which one fits you right.
Before you buy Life Insurance
Remember that there is a range of life insurance plans available today to suit various needs. Thus, consumers are not required to buy the first plan that they come across. Remember, what is right for someone else may not necessarily be right for you. Choose the suitable policy based on your requirements.
Furthermore, choose a sum assured that ensures a secure financial future for your family. For example, your sum assured should be enough to cover the regular expenses of your dependents as well as any liabilities you may leave behind.
Today, since life insurance policy quotes are also available online, the process is hassle-free and paperless. You can get multiple life insurance policy quotes with just a few clicks.
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