With an increasing number of insurance products in the market, customers enjoy a wide array of choices. Many competitive products are being offered, some at comparatively lesser rates as well. Predictably, many of us also prefer products which are cheaper. However, the question we need to ask ourselves is – whether every cheap product is good?
Life Insurance, one of the most crucial of all products, is available in a wide range, each plan with something unique to offer. Insurance companies are in competition to lure consumers with attractive features. Although most of the features are beneficial to us we do need to evaluate thoroughly before we finalise one.
We tend to go for the cheapest plan possible. The reason being the popular belief and the advice that is offered to us, again and again! There is nothing wrong with choosing a cheap plan. However, what we need to consider is whether that is the only deciding factor? Should rates of the product be the only criteria we need to follow?
No! Let us discuss why.
Buying life insurance, unlike any other product affects our entire life. That is the reason why it becomes even more important to be careful while purchasing. There are a few things which we must keep in mind before buying a life insurance plan.
Here are a few ways which can help you in making an informed decision.
First, review all your insurance needs. Understand what your requirements are, plan for your future and for your family. Decide whether you want to buy term insurance or permanent insurance. Term insurance offers cover for a stipulated period of time while permanent insurance offers cover as long as you pay the premiums.
Then, evaluate your financial condition – check whether you have any debt or mortgages. Decide on the amount of coverage you would want and for how long, the amount of premium that you will be able to pay regularly, whether you have any dependents or, whether you need to provide financial support to your family. If in case something unfortunate happens, how much financial support you must provide to ensure a financially stable life for your children, parents, and spouse. These are just a few factors that can influence your purchase of a life insurance policy.
Rates of plans may vary from one company to other. However, for a suitable product, one must consider the above-mentioned variables along with looking into the cost of the plans. Life insurance is to help us at times of need. Hence, we shall buy a product which fulfills our requirements on time and in ways we would prefer.