Deciding whether you really require a life insurance plan or not is indeed a complicated task, however, it is not as cumbersome as you may believe it to be. These days, it is easy to understand the nuances, benefits, and importance of purchasing life plans at an early age – courtesy specialized sites dealing in life insurance online. Through this article, we intend to throw light on how to buy life insurance and some important benefits of going about the act.
How to Buy a Life Insurance Plan?
When you chose to buy life insurance, it is well-advised that you exercise financial prudence by comparing the features and benefits of different plans online. By selling car insurance online, companies can avoid frivolous charges such as paper-cost, processing fees, agent’s commission, etc. The benefits so received by various insurance companies are passed on to customers as additional perks. You may want to check out the best car insurance plans online on insurance aggregator and comparison sites like Coverfox.com.
1. Purchase of Basic Term Insurance
Term insurance is an affordable and basic kind of life insurance product. It offers a lump sum amount to the family of the insured person in the event of the policyholder’s untimely death during the policy term. Term plans are specifically beneficial for those who require death benefits only. To this end, they need to decide upon the life insurance coverage and the premium amount beforehand. The factors to be considered for purchase purposes are the insured amount, gender, smoking habits, overall health conditions, term and scope of insurance coverage, etc.
2. What Should the Sum Assured Be?
As the primary responsibility of a term life insurance plan is to provide financial support to your family when you are no more, the lump sum amount should be enough to pay off your liabilities and help your loved ones maintain a quality lifestyle. With this in view, it is essential that the lump sum assured should be a minimum of ten times of your current annual income flow keeping the steadily rising inflationary costs in mind.
3. Why Buy Life Insurance Online?
As life insurance plans online are approximately 40 percent cheaper than most offline plans, they make for a good buy in all circumstances. Purchasing life plans online do not require you to be tech-savvy. All that you need to do is log onto the user-friendly website hosted by reliable insurance aggregating companies and check out all that they have on their plate for you. In order to facilitate smooth transactions, it is essential that you figure out your coverage and premium needs beforehand.
Also, it’s best to compare different life insurance plans and their coverage to assess the best policy for yourself. Once done, you may want to use reliable payment gateways to ensure quick, smooth, and paperless transactions online.
Advantages of Buying Life Insurance
1. Provision for your Dependents
The obvious and most important reason for making investments in life insurance plans is that they help you replace your income flow (to a certain extent) in case you die leaving your dependents behind. From taking care of your children’s education and marriage expenses to taking care of loan repayments, an appropriate life insurance plan takes care of it all.
2. Flexible Tenures and Payment Patterns
Be it in the form of life insurance coverage that spans across 10, 20, 30, or more years for giving a lump sum amount of money; or annuities to replace your current income source in the form of monthly, quarterly, or annual payments; there is no dearth of options to choose from when you are buying life insurance online. You may want to ascertain your financial milestones to time the maturity benefits beforehand so that you get the required amount as and when needed to fulfil your life goals.
3. Insurance as Investment
Young professionals, established businessmen, housewives, owners of proprietary businesses, and corporates alike are always on the lookout for effective investment options to park their savings. For such people, there are variable life insurance plans that serve as useful additions to their investment portfolio. These policies allow for investments in bonds, stocks, and mutual funds to enhance the cash value of your savings as per your risk appetite. While choosing one such policy, you may want to limit your risks by selecting a product that guarantees minimum death benefits.
The Bottom Line
Though life insurance is an easy-to-invest in product, you need to be doubly sure of getting optimum coverage at the least possible costs to make the same feasible for you. Buy life insurance online at Coverfox.com to trigger off one of the most important financial steps for protecting the interests of your family – right away!