Five Tips to buy Life Insurance

1. Five Tips to buy Life Insurance

2. Life is precious because of the people we are associated with. And for those who believe in the rationality of it, life insurance is on their priority list. With an alarming rise in unforeseen events such as accidents, air crashes and natural calamities, it is essential to insure oneself so as to provide safety and security to our loved ones. • Insurance refers to a contract between the insured and the insurance provider. It is in exchange of the payment, i.e. premium paid by the insured for which the company provides a round sum of money in the event of the insured’s death.A few insurance tips will help in choosing the right Life Insurance Policy

3. 1. Buy at a young age • Calculated on the basis of gender, age, health, profession, etc • The lower the age, the lesser the premium • The premium amount is constant throughout the policy

4. 2. Buy online • A convenient option with lesser formalities • Cheaper policies are available online • Easy mode of research and comparisons

5. 3. Buy the right type • Essentially of two types: Whole and Term • Whole life insurance is coverage until one dies • Term life insurance is for a specified period of time

6. 4. Choose the right company • The right policy depends up on the company one chooses • Agencies that list insurance companies are helpful • Remember that the policy does not burn a hole in your pocket

7. 5. Amount of coverage • Do not under-insure yourself and make the right estimate • Calculation of sum assured is critical while buying a policy • A thumb rule here is to multiply minimum annual gross income to 8-10 times in addition to debts