3 Questions Before Buying Life Insurance Policy

1. 3 Questions to ask before Buying an Insurance Policy Do the complexities of financial terms restrict you choosing the best life insurance plan for your future? If yes, keep reading this article to know how to prep up smartly for investments. Learn about the top 3 questions that you should ask before buying an insurance policy. 3 Questions You Should Ask before Applying for a Life Insurance Policy How much money do you need in the future? The main objective of most of the life insurance plans is to bear the high expenses you might have in the future. By investing in an insurance policy, you are actually saving a small portion of your income for the future expenses on a regular basis. However, before planning to buy such policies, one must have a rough idea about the future fund requirements. No matter how vague it may sound in the beginning, but calculating the amount you might need after 20 or 30 years later, would help you in choosing the best life insurance plan for yourself. If you still find difficulties, do consult a financial adviser. What tenure your policy should serve? While planning to invest in a life insurance policy, you might be more interested in ROIs than any other thing. Well, the ROI of any life insurance policy determines on an array of factors of which the tenure of the policy is one. Hence, do give some time on thinking what tenure do you want your policy to serve? Do you want to invest in a policy which is as short as 10 years or will the long-term insurance plans would work best for you? It’s you, who has to give it a thought. So, think about it and come with a clear vision - long-term or short-term.

2. What premiums can you afford? There are two types of premium that come up with every insurance policy and they are stepped premium and level premium. The Stepped Premium is ideal for those who are looking for short- term benefits. For example, if you are not willing to pay a heavy amount at the beginning of your policy, you need to go for the stepped premium. Here, the premium starts from the lower value and keeps on growing until it reaches the end of the term. However, the Level Premium works the opposite. If you wish to apply for the Level Premium, you might need to pay a higher premium at the beginning of your policy but unlike the stepped premium, it won’t grow with time. This means, whatever amount you are paying to the company will remain the same till the end of the term. Hence, if the long-term gains are on your mind, go for the Level Premium and be a smart These were the top three questions you must ask yourself before investing in a life insurance policy. For more such tips and advice, contact the experts of Policy Market, India’s leading financial service provider. They help you find the best quote for your policy. investor.