What is life insurance?
Life insurance is a contract between an insurance company and a policyholder where the insurer guarantees to pay a specified amount to one or more named beneficiaries in the event of the policyholder’s death in exchange for premiums during his lifetime.
“The best life insurance companies have good financial strength” low number of customer complaints high customer satisfaction’
Variety of policies’ available and inclusive riders, and easy application.
KEY TAKEAWAYS
Lifeinsurance is a legally binding contract that promises the policy owner a death benefit in the event of the death of the insured.
For a lifeinsurance policy to remain in effect, the policyholder must either pay a single premium upfront or pay regular premiums over time.
When the insured dies’ the policy’s named beneficiaries will receive
The policy’s face value or death benefit.
“Term life-insurance policies expire after a specified number of years”. A permanent life-insurance policy remains active until the insured dies, stops paying premiums or surrenders the policy.
A life insu-rance policy is only as good as,
‘The financial strength of the life-insurance company that issues it’. The state guarantee fund can pay the claim if the issuer cannot Read more
What is Pure Protection Plan?
A pure protection plan is designed to secure your family’s future by providing a lump sum in your absence.
What is the Protection and Savings Plan?
A protection and savings plan is a financial tool that helps you plan for your long-term goals such as buying a home, financing your children’s education and more, while offering the benefits of a life cover.
“Click here to know more about different types” of lifes insurance plans.
Factors Affecting Lifes Insurance Premiums
Now that you know what life. insurance is and why you need it, find out the factors that can affect life, insurance premiums:
Age:
One of the main factors that affect the premium of a life-insurance plan is your age. Life nsurance premiums are lower for younger people and increase gradually with age
Gender:
Studies have shown that women, live longer than men. Hence’ life insurance premiums are lower for women than for men
Your current and past health conditions can determine the premium for your life insurance plan. If you have a pre-existing illness or have suffered from an illness in the past that may re-emerge or affect your current health, you will be charged a higher premium.
Family health history:
Chances of contracting a disease that runs in your family are quite high. So, if there is a hereditary disease in your family, you may have to pay a higher premium
Smoking and drinking alcohol:
Lifestyle habits like smoking and drinking alcohol can affect your health and lead to multiple health problems. Hence, insurance companies charge higher premiums for people who smoke or drink alcohol
Type of Coverage:
The type of coverage you choose can increase or decrease life insurance plan premiums. Adding a rider to your plan will increase the premium. A longer policy term can result in a higher premium than a shorter term. Apart from this, the type of life insurance plan you choose also affects the premium. For example, term life insurance is the most affordable form of life insurance
Extent of Coverage:
A higher Sum Assured will result in a higher premium and vice versa
Profession:
If you work in a high-risk job, your life insurance plan premium will be higher than others. For example, if you work in construction or if your work exposes you to any type of risk, such as regular exposure to chemicals, the insurance company will charge higher premiums.
How to buy life insurance policy online?
“Now that you know what a life insurance policy is and how it works’ let’s move on to the buying process”. Buying a life insurance policy has become easier over time’
Thanks to online channels that allow hassle-free policy buying.
‘Applying for life insurance plans in India is easy’ you can either contact the nearest branch of an insurance company.
“Or you can buy a life insu rance plan online”. Canara has optimized its approach by taking HSBC Life Insurance online. “You can eliminate unnecessary paperwork and opt for the convenience of buying a life insurance plan from the comfort of your home”.
insurance companies verify all the details provided by the buyer before issuing the policy. ‘One has to fill an application form with details like medical history and family health history’. The insurer may also ask you to undergo a medical examination if required.
Steps to buy plan online Buy the best life insuranc plan
Earlier, lifeinsurance policies could only be purchased offline through agents. But the advancement of technology has made it possible for you to buy insurance online with just a few clicks.
You can follow these steps to buy your insurance online.
1. Log in to the site: /index
2. You will be provided with all available life insuurance options
3. Calculate your premium by clicking on ‘Check Premium’ button After entering the details you will be given an estimated premium.
4. Go ahead and enter your basic details in the provided application form
5. Undertake medical examination (if asked)
6. Based on the information entered, the premium is paid
7. Pay your premium from various online modes available. You can pay through credit card, debit card, net banking etc
8. After detailed verification, the policy will be issued to you
“How to choose the right type of li fe insurance policy?”
Just understanding what a policy is is not enough. You must know which type of policy will suit your needs. In addition to the amount of coverage you need, you should also determine what type of plan you need. Among all the types of li-fe insurance plans available, there are two main questions that will help you decide on the right policy –
1) How long do you want your life insur ance coverage to last?
2) What goals do you want to prioritize and save for?
‘Answer these questions and find a lifeinsurance plan’ that suits your needs.
For example, if you want a life cover where you can add your spouse as well, look for insurance plans that offer such benefits. The iSelect Smart360 term plan allows you to add your spouse to the same policy at a discounted rate. Secure their financial future by helping them get life cover.