How to pick one among the best life insurance companies?

by Financial Advisors Financial Advisors India provides financial servic Death is the only reality of life they say, but it is so unpleasant that we shudder to think about it. However, it is absolutely pragmatic to think about death because if you look at it from a practical point of view, thinking about death can help you to plan out a lot of things such as your will, and setting aside some money for your family. In case you are the only earning member of the family, your family can fall in tough times in case you pass away. Therefore you should be prepared for such a situation and insurance your family’s future by investing in a life insurance policy.

While most people think of life insurance policy as merely a retirement scheme, it can serve its intended purpose very well. Since people don’t anticipate their death, they think that investing money with Life Insurance Companies will help them invest for their future, and that they will receive all the money with interest at the time the policy matures. While they are extremely correct, it is also possible that the policy holder might pass away. During such times, the life insurance company pays the family of the deceased the promised sum of money along with some amount every month.

It is said that 90% of life insurance firms earn because of policy lapses. In some cases, the policies lapse and the customers don’t renew it; in some other cases, the deceased’s family isn’t even aware about the policy in which the deceased had invested money, thereby ensuring that all the money stays with the insurance company. So essentially, this is a business model wherein a lot of people pay money to the company but in return, the company has to pay out very little. But if you are purchasing any life insurance policy, make sure that you inform your family about the same as well as renew your policy whenever it is about to lapse.

While asking for Life Insurance Quotes, people often end up making some mistakes. Let’s see which mistakes are we talking about, and how can you avoid them:

• Avoiding medical: At the time of buying a life insurance policy, the company will send medical professionals to test you. Many firms offer the convenience of not giving any blood test, but if you look at the conditions, you might realize that this convenience is being charged during every premium!

• Choosing beneficiaries: You should choose beneficiaries carefully. Some of your kids might be too young to even understand what to do with the money. During such cases, you should mostly make your wife the beneficiary. If not, you can choose your siblings who can take care of the wealth on behalf of your children.
Buying an insurance policy will make your mind worry free once and for all. You will be content about the fact that you’ve taken care of your family’s future finances and that even in case of your death, their lives will remain secure. This very thought can help a person sleep peacefully at night!

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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