When it comes to providing your family with a sufficient amount of corpus to be able to deal with the cost of different life risks, there is no better option than buying a life insurance policy. It ensures to a great degree that your loved ones are financially stable, especially in your absence.
In recent times, as more people are getting aware of the benefits of this policy, there has been an increase in the number of policyholders. If you are confused about whether or notto purchase the policy and also about how to purchase it, read on to know more about it.
Life insurance: What is it?
As there are different types of insurance policies in the market, the question, “what is life insurance?”, often confuses first-time buyers. In this policy, the insurer agrees to compensate the family of the insured, i.e., the policyholder. This compensation is given in the event of the policyholder’s unfortunate demise during the policy term. The compensation is known as death benefit. This amount can be used by the family of the insured to take care of vital expenses and cover the cost of emergencies as well. At the same time, it can help in securing their future financially.
Which is the best way to buy the policy?
When it comes to purchasing life insurance policy, there are two ways that you can purchase it: online and offline. While both ways have their pros and cons, online purchase is suggested more often for the following reasons:
- You get to compare different insurers and their products before making a decision.
- You pay only what you see. There are no extra or hidden charges in an online purchase.
- You get to customise the policy as per your requirements.
- You can purchase the policy from wherever you want and whenever you want.
- Renewal is easier online and a record is maintained of your purchases.
What are the steps of buying the policy?
If you are planning to buy the policy online, here are the steps for it:
- Visit the insurer’s website
If you have a preferred insurer from whose website you wish to buy the policy, you can directly visit their website. Alternatively, you can compare different insurers online before you can zero down on one and visit their website respectively.
- Provide details
On the website, you are required to provide details in order to purchase the policy. These include your basic contact details and personal details. You are required to mention your lifestyle habits. If you are a smoker, the premium of your policy will be more compared to that of a non-smoker.
- Select the premium mode
In the premium payment option, you have the option of doing regular payments or a one-time payment. In regular payment, you can pay the premium on a monthly, half-yearly, or yearly basis. If you are someone whose income is spent on vital expenses, this option might suit you. On the other hand, if your income allows you to make a one-time lump-sum payment without the risk of financial instability, you can opt for the single payment option.
- Fill up the proposal form
The proposal form is where you have to provide details in depth. This includes your personal details, family details, and job-related information. If you have any existing life insurance, you will be required to mention those details as well. Similarly, you are required to mention health details, and mention medication if you are on any.
- Provide documents
You will be required to provide digital copies of the details pertaining to the information provided in the proposal form. Make sure these documents are updated and properly verified before submission.
- Do a medical check-up
Most insurers require their buyers to do a medical check-up as a part of the process before the policy is issued. This check-up can be done either by yourself or the insurer will send a medical professional to do a check-up at your place.
- Wait for the issuance of the policy
Once all the details have been properly verified, you will be presented with a quote as per the details. Make the payment and the process will be completed. You will receive a soft copy of the policy soon in your email.
These are the steps to purchasing life insurance. To get an idea about the cost of the policy as per your requirements, you can use the life insurance premium calculator on the insurer’s website.
