Buying insurance

It is recommended that an informed decision should be made while buying life insurance by considering following points:

  1. Determine your need first.  If you wish to buy insurance to protect your family from loss of income in case you are not able to earn, you can buy term life insurance.  If you also want certain value accumulation along with such protection, then consider whole life or universal life insurance. If you intend to earn on your money from investment, then opt for unit-linked insurance products.  The description of all these products is given in the prior section.  You can also discuss with the representative or agent of the insurance company regarding your needs and preferences.
  2. Buy the policy with sum insured that suits your family‚Äôs needs based on number of dependents, periodic expenses, etc.  Higher the sum insured, higher will be the premium, so make sure that you do not have to incur extra cost for something which you do not essentially need.
  3. The price of the policy, which is the insurance premium, is based, among other factors, on the life expectancy of the insured person which is determined by various factors such as the age of a person, the health condition and history, the hygiene arrangements in his/her lifestyle, etc.  Hence, negotiation of the insurance premium on these bases is also possible.