What do you do before buying a phone online? You compare the prices of the phone on multiple e-commerce websites to find the best deal. So, why wouldn’t you follow the same practice when you are buying life insurance?
Let’s just face it, life is unpredictable. You might be healthy now, offering financial security to your family. But you don’t know what the future holds for you. While life insurance might seem like an unnecessary expense for you, it is an investment into your family’s future. However, if you really want to save money on life insurance, comparing life insurance quotes is a better practice.
So, let us tell you how you can compare life insurance quotes, and what parameters you should keep in mind.
1. Life Insurance Premium:
Life insurance does not come with a one-time cost like other commodities do. The buyer is required to pay regular monthly payments as life insurance premiums. Hence, the premium payable matters for the cost-conservative buyer.
Consequently, most purchasers compare life insurance premiums or life insurance quotes while buying the right life insurance policy. All the reasons why it is the driving factor of the purchase. It’s essential to ensure that you are not buying a life insurance policy that comes with a premium you cannot afford.
2. The Sum Assured:
The next key factor that drives the purchasing decision of most purchasers is the sum assured. It is the guaranteed amount that your family will get in the event of your untimely demise. As this amount can save your family from financial catastrophes, it matters. Consequently, it is one of the crucial parameters of life insurance quotes. When you are buying life insurance, ensure that the sum assured you choose is adequate to meet the financial requirements of your family.
3. The Policy Benefits and Inclusions:
Life insurance premiums and the sum assured are not the only parameters required for comparing life insurance quotes. The policy benefits matter too. For instance, some insurance companies might not offer you a cheap premium, but they will offer you other benefits, such as extra bonuses as the survival benefit. Such monetary benefits affect the cost of life insurance indirectly, so it’s essential you consider them too while buying life insurance.
4. Type of Life Insurance you Want:
There are several types of life insurance policies available. You cannot compare life insurance quotes for two different types of life insurance policies. They have to be of the same type.
For instance, term life insurance might have a lower premium than money-back life insurance; the reason being the former provides only the death benefit, while the latter provides both survival and death benefit. Ergo, give the type of life insurance policy equal consideration.
5. Take Help of Premium Calculator:
Comparing life insurance quotes can become easy if you take the help of a life insurance premium calculator. It is an online tool easily available on different websites. The tool is easy to use, and you can utilize it to get an idea of the life insurance premium you will be required to pay according to your age, lifestyle habits, and requirements.
6. Consider the Company you are Buying Life Insurance From:
Cheap life insurance quotes might tempt you to buy that particular life insurance policy, but beware; cheap things are not always authentic. In other words, it might not be a good idea to buy life insurance from obscure insurers just because they offer you a cheap premium. Who knows if such obscure insurers might reject your claims or delay them and make the process for you much more hassling?
It’s always suggested to select reputed life insurance companies as they not only guarantee you top-notch services but also genuine insurance products. In addition, it will be a good idea to compare the claim settlement ratio of multiple insurers before you select the insurer. A company with a claim settlement ratio of more than 90% is more likely to settle your claims and provide you with a smooth and quick claim settlement process.
The Bottom Line:
Life insurance is an essential purchase in the 21st century. In order to make the right purchase, comparing life insurance quotes is a healthy practice that will help you find a better deal. It’s not only good for your wallet, but also for your family during your absence.
