Uzair Jan
No one can deny that they will have greater peace of mind if they and their family members are financially secure. If you too think alike, then you would want to opt for a life insurance policy. Since unexpected situations can crop up at any moment, such as an unfortunate death or a medical emergency, it is better to prepare beforehand.
Moreover, bearing the financial impact of these situations can burn a hole in your pocket. You might have to dip into your savings or your family’s hard-earned money. To avoid this, you should compare the plans available using a life insurance premium calculator and buy a suitable plan.
It will cover the pressing need for insurance for you and your family with proper coverage and financial support against life risks. Especially if you are the sole earner for the family, your untimely demise can cause your family problems. While dealing with the loss, they may also have to repay any debts like home loans or other debts.
Plus, having a good life insurance plan is beneficial so that your family can maintain their living standard if you are not around in the future. The insurance lump-sum payout will help them cover the costs of running the household.
However, with the various different types of life insurance plans available, it is necessary to find the plan that suits your individual requirements. If you research online, you will be able to find the best protection in the most cost-efficient manner. A life insurance calculator is one such tool that helps you find a plan with those benefits.
There are some other pointers that you should consider while planning your insurance purchase like:
- Affordability
To analyse the affordability of the life insurance you opt for, you must first decide upon your sum assured. You need to evaluate how much coverage you think your family might require in your absence. Then, you need to consider elements like your age, financial responsibilities, basic expenses on the basis of your lifestyle habits and more.
Moreover, you need to take into account the loans you are repaying currently and inflation in future. In case you are repaying a debt, the payout should be such that it takes care of the pending payments and meet your family’s needs. Finally, with the help of a life insurance premium calculator, you can determine which plan is most affordable for you.
- Premium Payment Options
When you browse through the life insurance plans, you will find three types of premium payment options. Insurance companies offer these for the convenience of their customers. These include regular, limited and single.
Regular premium payment involves paying premium monthly, quarterly, half-yearly or yearly. Being an affordable option, it is one of the most recommended mode. Unlike the regular premium payment, the limited premium payment plan is a plan where you pay the premium for a shorter span.
However, you can enjoy the benefits of an insurance cover for a longer time with this option. If you want to be relieved from the commitment of paying insurance premiums for longer periods, then you can opt for this option. IRDAI allows this option for 5 year or 10-year terms.
A single premium payment option means paying the premium all at once. Thus, if you have idle money, then this is the best option for you. However, it would help if you considered inflation when buying the life insurance plan.
And to understand which premium payment option is the best, you can use a life insurance premium calculator. You can compare the options online.
- Appropriate Policy Term
The objective of choosing term insurance is to replace the income for your family that you generate in case of your absence. Thus, it would help if you were covered for the whole period you intend to keep working for like till 65 years of age.
Many plans available offer insurance cover up to 100 years of age. However, buying term insurance at a young age is always a wise idea for the long term. Using a life insurance calculator, you can determine your premium, which will be low if you buy the plan early. In this manner, you can benefit from low premiums and a much-extended insurance cover with long policy tenure.
It is essential to manage your money in a planned manner today. The increasing living costs and unexpected inflation can cost you heavily during emergencies. Hence, it is better to start planning your financial portfolio as soon as you can. There are numerous types of insurances available. However, the first aspect of ticking off your list should be a good life insurance cover.
All you have to do is fill in the required details in the life insurance premium calculator, and you will get the top results. Although, it is vital that you opt for a life insurance calculator of a reliable insurer like Max Life Insurance. You can visit their website and check the diverse plans available. If you face difficulty understanding any of the policy wordings, their team of experts will help you with their customer-centric approach.
