We work hard day and night so that we earn enough for our
loved ones to live a stress free and comfortable life. And we would obviously
want that security to continue even if we are not around anymore. This is where
life insurance comes to your rescue, and you can be with your family after you
are gone, financially at least. This is why everyone with dependent members in
family must have life insurance. But before you buy insurance we want you to
read the below mentioned secrets about life insurance which the insurer will
rarely tell you.
1) Term insurance is
your best choice
The purpose of life insurance is to provide protection and not investment. Therefore, if given a choice between endowment/ ulip (moneyback plans) and term insurance, you should always opt for term insurance. Endowment policy neither provides you with adequate insurance even after paying high premium nor it is a good investment option. Term insurance will give you higher protection at lower premium. This is especially true if you are young. You can invest the amount thus saved by opting for term insurance in better investment options such as mutual funds, provident funds, etc.
2) Online sites may
not always show true picture
Online sites which help you to compare different policy
rates of different companies may not always show the true picture. There may be
some hidden cost which may not be revealed. They may also display only policies
of certain number of companies and not all the companies. The low prices as
shown on the sites are also only eligible for young and healthy men and women.
The premium keeps increasing as you age.
3) Life insurance is
customisable
You can choose to have additional benefits and varieties in
your life insurance. In case of term insurance you can opt for a policy with
maturity benefit and you can go for either single or joint life insurance. Some
policies allow you to lower your premium amount by lowering the insured value.
To further increase your protection, you can add riders with your insurance
such as disability benefit, accident cover, critical illness cover etc. Agents
may not inform you about riders as it negates the need of buying separate
policies.
4)
Informing the beneficiaries
After buying insurance policy, make sure you inform the
beneficiary of the policy about it. Also update your address and contact
details in case of any changes. Crores of Rupees lie unclaimed every year with
the insurers because of it. Insurance companies do not try too hard to search
for beneficiary at the time of payout. Thus, if the beneficiary does not know
about the policy, they may not get the benefit of the insurance.
