Rishi Agarwal
Paying off debts, taking care of child’s education, leaving an asset behind and providing financial security – all of these can be taken care of even when you are gone. It may sound surreal but with proper planning and a life insurance policy, your family can survive. Go through the article to know A-Z about life insurance policy.
From meeting short-term goals to the long-term ones, the life insurance in India can help the policyholders on a large scale. The death benefits can help your children and spouse to keep going on with their lives and maintain the previous convenience of lifestyle. However, people who still have not enrolled for the policy might find it hard to get this as policies are hard to understand. All your queries are unveiled here.
Determinants in Getting Life Insurance in India
There is a list of factors one should know about when you avail the life insurance online in India. Take a quick look at these determinants now.
Medical History
The hereditary genes affect the risk prevalence of diseases leaving an impact on the health of the person. If the carcinogenic cell or the prevalence of great disease runs on your family, there is a high chance that you may develop that disorder. Therefore, medical history and its investigation on the gene pool can be a factor affecting the premium amount to be paid while opting for a life insurance in India.
Addiction
Smoking and drinking can put the policyholder with a huge dent on the premium. Both of these habits lead to chronic diseases; hence, the high rate of insurance rates is unavoidable. Generally, the smokers pay a higher premium rate than the non-smokers.
Obesity
If you practice a sedentary lifestyle, you may be at a risk of paying a huge amount of premium for the Life insurance policy in India. Obesity is closely related to coronary heart disease, high blood pressure, stroke, type 2 diabetes and a few types of cancer. The risk of developing chronic disease is high with obesity and it puts people’s lives at huge risk.
Health Record
Through the health record, the policymaker can assess the risk of undergoing critical illness or potential health problems. The insurer can determine your premium after evaluating the health records.
Age
With every tick of the clock, you are growing older. Age is one of the crucial factors regulating the premium charges. When you are young, the risk of developing critical illness is low. Therefore, young people have smaller amounts of premiums for life insurance in India. The life insurance in India for senior citizens is generally available at a high rate.
Hobby and Interest
It sounds amusing, but if a person is interested in bungee jumping, hiking, rock climbing or driving speed cars, he or she is likely to pay high premiums. Sudden accidents are more common in these extreme sports and adventures. Indulging in the thrill of life may lead you to pay more than others.
Gender
It is believed that life expectancy differs from gender to gender. Women are seen to live five more years than men. It also affects the premium for men and women, as women have to pay a low rate of premiums.
Terms of policy are a huge factor and it is beneficial when you claim the policy. The long-term policies are not as costly as the short-term policies. While opting for life insurance in India comparison, you should know that the insurance rate varies from person to person and premium is measured as per the rules of rating.
Picking up the Best Life Insurance Policy
When you are choosing life insurance in India, you have to look for certain aspects. Purchasing the insurance is dependent on the person’s financial situation and health condition. The plan suitable for your beloved may not be the right one for you.
Debts
If you die one day, how is your spouse going to clear all the debts that you have taken in past? Life insurance in India is a key way to manage debts; especially, if you have a mortgage on the house. With the sum of money acquired from the plan, your spouse can easily pay off the debts.
Apart from this, the plan can offer a high amount of loan. But before taking the loan, do not forget to check the interest rates.
Insurance Coverage
The life insurance coverage should be based on the number of dependents in the family and how financially they are dependent on you. It is important to note that the prime goal of life insurance in India is to offer financial security to your family when you are gone. For deciding on the life coverage, you should count the number of dependants.
During this calculation, you should keep in mind how inflation can affect the financial security of the family.
User Requirements
The life insurance companies in India put special emphasis on the basic needs of the individuals. If you have around three people financially dependent on you, it is highly necessary to get a policy. When the breadwinner of the family passes away, the rate of income is likely to go down. Generally, unmarried people consider their parents to be dependent on them and recheck the life insurance plan.
Annual Income
The current income of the policyholder plays an effective role in choosing the best life insurance in India 2018. At first, you need to decide on a specific amount and think whether you can survive if the amount is deducted from the income. Consider whether there will be any impact on your daily requirements.
When you are investing in the life insurance in India, it is better to purchase a plan having a life cover of 15 – 20 times your yearly income.
Tips to Remember for Life Insurance in India
Check your financial needs; understand whether you need to fulfill any short-term or long-term goals
Choose the right type of life insurance India for getting adequate coverage with sum assured
Do not forget to compare the plans and go through life insurance details India thoroughly
Understand whether you need equal installment for a certain period, lump sum or both of these while investing in life insurance in India
I am thanks I don’t have to learn all this!
Nice and informative article friend. Thanks