The Do’s and Don’ts of Life Insurance

Providing for your loved ones is not the only important thing in a person’s life. The other part is to provide for them after you are not there for them physically, that is, after your death.

Hence, it is highly important that you do the necessary now and secure them. That necessary part is getting a life insurance. Coverfox here informs you about the general dos and don’ts to consider when buying a life insurance.

DO:

Your homework

Remember to always know about the kind of cover you want before getting into an agreement with an insurance company. Hence, it is very important to carry out proper research and do the math as to which cover plan you need and then approach the company, so that you select the correct plan that caters to all your and your loved ones’ needs.

Look for Options

This is where Coverfox will help. At Coverfox, you can see plans from  various leading life insurance companies and hence, you can find a perfect policy plan that caters to your requirements.

Evaluate the existing plan from time to time 

There may be times when you would want to change your plan or modify the original plan features as per your needs and requirements. The reasons could be change in lifestyle, death in the family, marriage, birth, etc. Such changes would demand an update in the life insurance policy plans and features.

Cover your huge debts

It is highly essential that you consider all your pending finance agreements and while planning all the features of the life insurance policy. This is to ensure you cover all expenses from loans and mortgages to catalogues and credit cards.

Take the plunge. 

When you come across a perfect life insurance deal, it is better to go for it as soon as possible as age does not go with you in life insurance policy plans. It is due to the decreased risk being the main factor to that.

DON’T:

Give a written or recorded response

If you are not sure about your life insurance policy plan or coverage, you should not give any concrete response to your agent in writing or recording, even if they ask for it. Always make sure that the plan is fulfilling all your requirements. If not, inform your agent about the same and ask him to help you with it.

Forget to always get a second opinion

The agent managing your plan may often cite you a value estimate that may be considerably higher than the actual amount you should be paying. Remember to always get a second opinion on these quotes and carry out a proper research and get the best deal. Compare insurance plans and get the suitable one at Coverfox.

Forget about inflation.

When working out how much life insurance to take, you’ll need to think ahead. Don’t forget that costs are likely to have risen with inflation, and you’ll want to think about future costs that you might not currently be paying, such as school fees, home improvement costs etc.

Buy life insurance plans for tax saving and investment

The primary objective of life insurance is to provide your loved ones with financial protection and security, hence, don’t fall for insurance ads that talk about tax returns and investments. Even though life insurance plans provide tax benefits under section 80C of the Income Tax Act, 1961 it is not just an investment. It usually offers a low rate of return compared to other investments like Provident Funds and Fixed Deposits.

Avoid medical tests

Never avoid medical tests that are carried out before purchasing a life insurance plan for a large sum of money. This could lead to rejection for buying the policy.

Delay going for life insurance

Everyone tends to avoid the awkward topic of life insurance. However, putting it off for long is not going to help. It is understandable that no one wants to talk about death, although, deserting your loved ones financially after your demise could be devastating. Consult Coverfox to go over your options and select the perfect plan for you and your family.

Keep in mind that the decision is about securing and protecting your family financially in the future, thus, it is safe to say that it is an important one. Taking your time to research and select one is only going to benefit you.