Some people may think of it as another expense whereas some people know what importance it carries. The single answer to all confusion regarding life insurance policies is that it provide the needful and helpful financial cover to your family and loved ones in case of your demise. Moreover, if you are a single bread earner of the family, then it is the most important thing that you should go for.
Almost everyone knows the importance of life insurance, but usually, people choose to ignore the fact that what would happen if the breadwinner of the family dies suddenly without the proper protection. It can be the most devastating situation for the surviving family members, leaving them with huge debts and several other expenses to deal with. Having an appropriate life insurance plan has become a necessity. If you are planning to buy an effective form of life insurance cover then it is advisable for you to go for an adequate cover. People usually make many mistakes when it comes to buying life insurance policies, there are few things that you should avoid while buying a life insurance policy.
Not defining the reason
You must be clear with reasons that why you want to invest in a life insurance policy. You should also ask your advisor or your agent about all the features that the policy offers. If he is not able to make a satisfactory assessment, then you must look at the policy again as in such cases it will be benefiting only him and not you.
Usually, it is the habit of many people to leave the task of filing forms on the agent. You should understand that a life insurance policy is a legal agreement and based on good faith. Under the same, the company will represent all the facts and expect the same from you in all aspects. If you do not provide accurate details at the time of buying a policy then there are high chances of facing rejection during the claim process. So, it is always advisable to fill your form on your own and don’t rely on anyone else for it and make sure you are providing accurate details.
Not verifying policy details
After getting the policy’s documents, you should go through it properly. Look for all the required information such as products information, terms& conditions and much more. If you find any issue or think that the information is different from what the agent told you then you can also return the policy during free look period and can ask for a refund.
Not disclosing to family
Normally people buy life insurance policy for the protection of family and loved ones, therefore not discussing the same with them can leave them in confusion at the time of need. Inform them about the policy and also let them know about the complete process of filing claim.
Not keeping commitment
Before buying a policy you should make sure that discontinuing, surrendering or lapsing the policy in a mid-way can be a huge mistake. If you are unable to pay a premium or something close to that then it is advisable for you to check loan facility on the policy. If it is available, then you must take the loan and continue your policy.
Life insurance is something that will be there for your family in case of your demise and will provide the needful financial cover to deal with unwanted emergencies and expenses. It is advisable to search for the appropriate cover so that your family can easily maintain their standard of living after you as well. Look for the different available options, compare them on the basis of features, benefits and much more. Choose the best one that can easily go well with your needs.
The views expressed in this article are of Naval Goel- CEO and Founder of PolicyX.com.