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Which Insurance Company?
If you want to compare life ins online, deciding, which insurance company is the best, is one of the most confusing decision. Market is flooded with insurance service providers with different schemes offered by different companies. It is advisable to examine company on the basis of its market reputation, financial strength, financial ratings, assets size, experience in the field of ins and its claim settlement ratio.
Comparing Similar Premiums
While taking policy premium into account for comparing ins policies, you should consider following things:
A. The amount of premium you need to pay for the insurance policy is the most crucial factor that must be considered to compare online. Make sure you are comparing life insurance policies with similar premium structure and equivalent plans. insurance companies typically offers two types of premium, one is stepped and other is level. When you consider policy, you have to decide how would you like to structure your insurance premium. Stepped premium increases with insured person's age. Level premium remain at same level irrespective of age and typically remain same till the insured person attain age of 65 years. So, if you are comparing life insurance online premiums, make sure that you compare policies with similar premium structure only.
B. Consider, whether insurance company is offering guaranteed life insurance premium or reserve right to alter premium in near future.
C. You should also consider the term of premium payment. Insurance companies generally offer
single premium option and regular premium option or limited premium paying option.
D. Many insurance companies introduce discount on first insurance premium of policy. Many times policy buyers find it much affordable to pay for premium at initial stage, which becomes expensive from the next year onwards. Thus, as a prudent policy buyer, you should ask for a projection of likely costs to figure out its real cost in the long term.
Life Insurance Coverage
Life coverage is also an important factor of concern to decide on life insurance policy. It is the amount received by the beneficiary on the death of the insured person. Generally, premium payment is higher with higher coverage. However, few policies offer lower mortality insurance rate for higher sum assured. In order to decide how much coverage you should consider for your life insurance, it is important to consider how much you would have earned if you had been living to earn it. Most of the reputed insurance service providers have websites to provide functions over websites to calculate the right amount of coverage as per different criteria.
Maturity Benefits, Surrender Benefits and Returns
It is also essential to compare different policies on the basis of maturity benefits, surrender benefits and assured returns. Many insurance plans also offer additional benefits, apart from its regular key benefits. These additional benefits are known as riders for which insurance companies usually put additional charges. You should compare life insurance online considering charges of riders such as accident benefits, disability benefit, waiver of premium etc.
The lack of knowledge is as dangerous as little knowledge. If you are first time buyer of life insurance policy, you should gather enough information as insurance is subject to market risks. It is advisable to read all the documents carefully before investing.
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